The pay gap between top earners and those at the bottom of the spectrum is growing, according to a report out on Monday.

Figures released by Incomes Data Services (IDS) say that more workers than ever before are earning less than the national average.

The group says that high earners have secured bigger wage settlements than low earners over the last 10 years.

Over the last decade the top 10 per cent of earners have seen their pay-packets increase by 54 per cent - compared to a 45 per cent increase for the lowest 10 per cent.

Whilst IDS concludes that the national minimum wage has improved life for low earners, it says the move has had little impact on the pay gap.

In what will be seen as a positive signal that business confidence is returning, the report reveals that most firms are agreeing to pay increases of between two and 3.5 per cent - with a significant drop in the number of pay freezes.

Pay settlements in the public sector continue to outstrip those in the private sector, IDS finds.

Public sector workers are securing increases of between three and 4.5 per cent, the data reveals.