UK wages to rise above inflation for 2015, study shows

Annual real earnings to rise for first time since 2007 but later retirement age and growing workforce is slowing pace of increases

British wages will rise above inflation throughout 2015 for the first time in eight years but "boom time" pay increases remain a distant prospect, according to a study.

A special report on the labour market from the Ernst & Young ITEM Club predicts a pick-up in pay growth to 1.9% this year, delivering the first increase in real earnings since 2007, amid low inflation. Inflation has hit a record low of 0.3% and is expected to turn negative in coming months.