Around 400,000 construction workers in the UK will receive a 2.5% pay rise after unions struck a deal with builder federations.

Next year, workers will receive another pay rise of 2.75%.

The pay increases are considerably higher than inflation. As measured by the Consumer Prices Index, inflation is currently at 0.3%, meaning workers will get a 2.2% pay rise in real-terms.

However, the unions that struck the agreement - GMB, Ucatt and Unite - said the current deal is becoming increasingly "unfit for purpose".

Brian Rye, acting general secretary of Ucatt, said: "This deal ensures that workers will enjoy above inflation increase for the next two years.

"However, employers need to understand that the CIJC (Construction Industry Joint Council) agreement does not meet the needs of the workforce and unless it is radically reformed it will soon cease to be relevant to the industry."