Private sector workers are facing pay freezes as the economic slowdown continues. Yet public sector employees will see increases in their wages.

CBI told The Times that many of its members will freeze their wages this year. Whilst according to a survey by British Chambers of Commerce 30 percent of businesses are planning on cutting their working hours.

Yet the public sector will see rises this year after new agreements last year. NHS workers will see two and three percent rises, and similar deals were agreed with teachers and police. Local government workers are seeking six percent jumps.

Falling inflation rates and rising unemployment have made it possible for firms to set cuts and freezes of wages. Inflation is currently at 0.1 percent, whilst figures for January are set to hit negative numbers.

David Frost, director-general of the British Chambers of Commerce, said: "It is unacceptable that the public sector should not share any of this pain. There is already an apartheid between the public and private sectors on pensions. We cannot have apartheid on pay too."