REAL wages are still falling despite the economic recovery, with public sector workers facing the largest squeeze, a union has warned.

Frances O'Grady, TUC general secretary, says council staff, health workers and civil servants are not sharing in the post-recession success.

She was speaking as plans were being finalised for a one-day strike next week by more than a million public sector workers in a long-running dispute over pay and other issues.

Ms O'Grady warned the morale of NHS workers and people in schools, local authorities and the civil service was plummeting.

She said: "Pay restraint was a bitter pill to swallow during the dark days of recession, but now the economy looks to be back on its feet, public sector workers are understandably angry their pay continues to be held down.

"Pay rises way below the cost of living, coming hard on the heels of several years of pay freezes, have left family budgets stretched to the limit.

"The recovery remains some way off for our hard-working, dedicated midwives, nurses, teachers, dinner ladies and other public servants.

"For them, several years more of financial worry and frugal living lie ahead."

The TUC leader said the anger about unfair pay will be on display during the strike on Thursday, July 10.

She added: "Spending cuts and large-scale redundancies have hit libraries, leisure centres and nurseries hard in communities right across the UK.

"The workers left holding the fort and trying to deliver those services, despite the loss of many of their colleagues, have pretty much had enough.

"Local authorities say they have no money because the Chancellor has cut council budgets to the bone.

"Our hard-working public servants deserve a pay rise."