Private sector pay 'to trail inflation' in 2011

Private sector pay could rise by more this year than in 2010, but is still likely to trail inflation, research suggests.

The prediction will be a blow for millions who are already struggling to make ends meet on their current salary, particularly following the recent rises in VAT and petrol prices.

The research is based on a report from Incomes Data Services, who say the public sector, which employs one in five workers, will be the biggest loser.

BBC business correspondent Maryam Moshiri spoke to the editor of pay experts Incomes Data Services Ken Mulkearn, she started by asking him how bad the changes will be.