THE public-sector pay squeeze has resulted in a reduction in spending in Yorkshire and Humberside this year by £800 million, according to new figures published by a union.

The data has been obtained by the Trades Union Congress (TUC) which has listed the loss of spending power across the UK over the past seven years.

The analysis shows that Yorkshire and Humberside’s public-sector workers today are earning, on average, £2,292 less each year than if their pay had risen in line with inflation.

As a result, the union states that since the pay caps began in 2010, full-time public sector workers in Yorkshire and Humberside have had £5 billion less to spend in the local economy.

TUC Regional Secretary for Yorkshire and Humberside Bill Adams said: “The public sector pay squeeze has hit communities across Yorkshire and Humberside hard. And that means less money spent on our high streets and in local businesses.

“The pay cap is a false economy. The Chancellor must use the Budget to give all public sector workers the pay rise they have earned, and end these artificial pay restrictions.”

Recent TUC polling shows that one in seven - 15 per cent -public sector workers skipped meals this year to make ends meet. And one in four say they couldn’t pay an unexpected bill of £500.

West and North Yorkshire Chamber of Commerce spokesman Mike Cartwright said: “We cannot comment specifically on the cap itself, as most of the businesses that we represent are in the private sector.

“However, most observers would recognise that there is a direct correlation between capping pay and the pace of economic growth in any given area.

“Areas with a higher proportion of public sector workers would, therefore, be more affected. The pay squeeze is not good for economic growth, but in recent years public sector budgets have been cut, and many areas of the private sector have been hit by increasing costs, more competition, skills shortages and other additional uncertainties.”