Deputy Andrew Sauvarin, President of Guernsey's Civil Service Board, said claims made by the Transport and General Workers Union had been "grossly exaggerated".

The TGWU said that the minimum public-sector wage of �228 per week was �69 below the figure, calculated in 2001, as above the poverty line.

The average wage in Guernsey was more than �35,000, double the maximum salary of public sector manual workers.

Mr Sauvarin said: "If there are people in real poverty then the States must address those problems.

"But it is simply not the case that there are thousands of people who fall into the poverty trap."

He added: "If we put on 10% on wages, everyone will want the same, so we don't get anywhere."

The States had commissioned a report on poverty which would be debated by the end of the year.