Sick leave taken by public sector employees is costing at least £4 billion a year, according to a new survey.

Data released by the Chartered Institute of Personnel and Development suggests that if ministers cut the public sector illness rate to that seen in the private sector they would save around £1 billion annually.

The figures are embarrassing for ministers as they seek to implement the Gershon proposals on increasing efficiency in the public sector.

A programme to cut the 12-day average absence rate in the Department for Work and Pensions has so far failed, reports the FT.

The Public and Commercial Services Union said "bullying" by senior managers was making matters worse.

The Mail reports that chancellor Gordon Brown is "furious" with the level of public sector absenteeism and wants to withhold sick pay from civil servants.