UK employees do not expect pay rise in 2012

Less than 30% of UK workers are expecting a pay rise in 2012, according to research by USwitch.com.

The independent price comparison and switching service also found that 65% of respondents have suffered pay freezes, with 15% not seeing a pay rise for at least three years.

For those expecting a pay increase in 2012, the average amount is just 2.1%. Only 3.3% are expecting a pay rise that is higher than this.

Over half (54%) of respondents will have to severely rein in spending to cope with a pay freeze, while 20% will have no choice but to take a second job or increase their current income. And 15% of UK workers have no idea how they will cope this year without a pay rise.

Michael Ossei, personal finance expert at USwitch.com, said: “After a difficult 2011, which saw the cost of living rocket, savings rates stuck at rock bottom and pay frozen, Brits are preparing themselves for another tough year.

“While the cost of living continues to rise, pay is not keeping up, which means that workers are seeing their disposable income drain away.”