Ten pound note and coinsPay deals in private firms have fallen slightly in recent months, highlighting a "squeeze" in living standards, according to a report.

Median awards dipped by 0.5% to 2.5% in the three months to July compared with June's figure, said Incomes Data Services.

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The study of 42 settlements found fewer awards at or above 4%, with the most common figure being 3%, accounting for a quarter of agreements.

The number of pay freezes fell from one in five to one in 10.

Ken Mulkearn of Incomes Data Services said: "The slight fall in the median basic pay award, while it comes outside the main April pay-setting period, highlights the squeeze in living standards that has been in evidence for the past few years.

"This is underlined by the recent uptick in inflation, which widens the gap between average pay settlements and the cost of living once more.

"However, some sectors have been faring better than others in pay terms, largely as a result of differing economic performance."