Blair's pay is linked to the salaries of senior civil servants

The pay rise is in line with a recommendation from the Review Body on Senior Salaries.

It also matches the rise for most senior civil servants - but judges' salaries will increase by 2.5% and senior military officers' by 2.8%.

There will also be performance-related bonuses for senior civil servants of up to 9% this year.

Prime minister: �178,922 Cabinet ministers: �130,347 Top civil servants: �121,100 and �256,550

The worst performing officials will have a "real terms pay cut" as pay rises will range between nothing and 9%.

Under the traditional inflation measure, the Retail Price Index (RPI), inflation lies at 2.6% - although using the government's new inflation measure, the Consumer Price Index, it stands at 1.3%.

'Disappointing'

Permanent secretaries - the most senior civil servants - will now be paid between �121,100 and �256,550.

And Mr Blair's salary will rise from �175,414 to �178,922, with the rest of the cabinet seeing their salaries go from �127,791 to �130,347.

The First Division Association (FDA), which represents senior civil servants, branded their pay rises extremely disappointing.

FDA general secretary Jonathan Baume said: "This fails to match inflation but will also mean that senior civil service salaries fall further behind other senior posts in the public sector.

"It will do nothing to assist the civil service in its drive to increase mobility between different areas of the public sector."

"Evidence is already emerging that Senior Civil Servants appointed directly to post from outside the service are earning higher salaries than internal candidates and this award will only exacerbate this two tier market in SCS posts."