Pay freezes and cuts contradict claims by George Osborne

Survey of 973 households reveals 40% expecting salaries be reduced or kept at same level in contrast to chancellor claiming to have restored UK living standards

More than 40% of Britain's recession-scarred workers expect to receive a pay freeze or a cut to their wages this year despite George Osborne's claim to have restored living standards, ensuring they would "grow strongly every year for the rest of the decade".

Just one in five of these workers expect their pay to rise by 2% or more in 2015, according to a new survey by information provider Markit, raising doubts about whether economic recovery can be sustained.