Public sector pay grew at its fastest pace in 20 years giving a fresh headache for the Bank of England in its battle against inflation.

Average earnings in the public sector grew by 5.6pc in the first three months of the year, its highest level since August to October 2003 as more and more staff demanded pay rises to keep up with inflation, which stands at 10.1pc.

It comes as there were 556,000 working days lost to strikes in March, up from 332,000 in February, according to the Office for National Statistics.

Private sector pay grew by 7pc over the period with overall regular pay excluding bonuses growing by 6.7pc.

However, after taking inflation into account, average pay including bonuses fell by 3pc in the year to January to March, or 2pc excluding bonuses.

Policymakers at the Bank of England fear wages rising will fuel inflation as pay keeps up with surging prices.

Huw Pill, the Bank of England’s chief economist, told British families last month to "accept that they're worse off" following a surge in inflation, although he has since said he should have used "less inflammatory" language.

The rate of UK unemployment rose to 3.9pc in the three months to March from 3.8pc in the previous three months.

Read the latest updates below.