Private sector pay rising at fastest rate for 14 years, says thinktank

Resolution Foundation says real wages rose at 3.6% thanks to low inflation but warns benefits may be felt mostly by older, more qualified workers

Britain's private sector workers are enjoying the fastest real wage growth in 14 years, with pay deals picking up as inflation hovers close to zero, according to a leading thinktank.

Analysis by the Resolution Foundation suggests that private sector wages rose at an annual rate of up to 3.6% in the three months to August, due to rising wages and flat living costs. That would be the fastest growth since 2001 if it is confirmed in official figures to be published on Wednesday.