The Government's reform of pay will cut almost £7bn a year from the value of public sector employees' pay by 2015, according to a new report from trade union pcs.

Britain needs a pay rise' reveals that since the start of the recession in 2008, the real value of pay has fallen by 7%. It warns that this, and the fact consumer demand has fallen by 5% in the same time period, is a major obstacle to future economic growth.