The average pay rise over the three months to the end of May averaged 3%, with only 25% getting bigger rises than a year ago, according to a report from the Industrial Relations Services (IRS).

A spokesperson for the IRS said: “As we head into the quieter end of the bargaining calendar, the median basic pay increase is now at the same level as headline inflation, giving employees an increase in pay equivalent to the increase in prices only.”

City analyst Colin Perry said: “These are pretty low average increases to be fair and people in the City remunerated by bonuses, for example, are doing a lot better. Still, the lid’s being kept on inflation and I suppose we should be grateful for that.”