Private sector pay in March rose twice as fast as inflation whilst the increase in public sector pay was 0.8% below inflation.
'The government says the higher private sector earnings reflect mainly bonus payments and increased overtime and that a firm check on settlements is all that is required,' said CIPFA's research director Chris Trinder.
'The increase is very worrying and could signal a new trend not just a blip. Recent changes in the methods by which private sector pay increases are determined means that continuing high earnings growth could now take place even while basic wage settlements remain low. Individuals are now rewarded in much more complex ways.'