The latest wage growth report paints a gloomy picture for the UK economy.
Wage rises have now dropped below inflation, which is worrying for an economy that has been so reliant on consumer spending.
In the public sector, a Government cap of one per cent on wage increases means the average full-time public sector worker has lost out to the tune of £9,000 since 2010.
If the cap remains in place they will stand to lose £4,000 more by 2020 – a total of more than £13,000.
Union GMB had demanded an end to the real terms public sector pay cut, proper funding for public services, properly independent pay review bodies and a real living wage of at least £10 an hour for all public sector workers.
Rehana Azam, GMB National Secretary of Public Services, said: “These disturbing figures show millions of workers are feeling the pinch in austerity Britain.
“Wages are falling in real terms for both private and public sector workers, but the situation is made even worse in the public sector by the cruel and unnecessary pay caps introduced by the Government.
“We should cherish our public sector workers – instead we offer poverty pay and increasingly poor conditions – no wonder recruitment is down and moral is at an all-time low.
“It’s time to do something about it –Theresa May must ends the public sector pay, properly fund our public services and pledge a real living wage of at least £10 an hour for all public sector workers.”
Jeremy Corbyn has confronted big business by confirming Labour would hike the minimum wage to a tenner an hour by 2020.
Vowing to end the “blight of low pay”, the Labour leader will say the party is committed to re-balancing the economy so that “no one and no community” is left behind.