The prevalence of the number of employers using long-term pay deals over the last six months confirms that in a period of relatively stable inflation this means of setting pay is undergoing something of a revival. (Ref. 130282)
Historically, long-term pays deals of between two and five years’ length stood out as the majority of pay deals from the 1970s onwards centred on one-year deals. However, in a number of sectors like manufacturing and utilities (gas, water, electricity) from the 1980s onwards, long-term pay deals became the norm. From the late 1990s onwards, there was a huge growth of long-term pay deals in the public sector as then Labour governments attempted to hold down pay rises by this means.
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