Fiercer competition for staff is also driving up earning levels. More than 60% of the respondents reported staff recruitment problems and around half said they had difficulty in retaining staff, blaming an inability to offer competitive salary levels and a lack of career progression opportunities.

The survey, which was conducted in association with NCVO, found that the charity sector’s salary increase was the highest across all the sectors, including the private, which only experienced a 4.3% rise. Employment levels within the sector are also growing - one in 50 of the working population are employed by a charity or not-for-profit organisation.

For further information, email Trevor Morris at Remuneration Economics at trevormorris@aol.com