Failure to curb reward-related pay in the public sector signifies the Government is delaying serious action on cutting its £180bn staff costs, according to an analysis produced by the Hay Group.

Findings from a study involving 85 public sector organisations across central government, councils, universities, police, the NHS and the third sector revealed none of the bodies planned to impose salary cuts. Only 1% intended to enforce unpaid leave and just 2% would implement shorter working hours.