But employers have warned that cutbacks may be needed to finance the 5.6% increase.

BBC Industry Correspondent Stephen Evans reports on warnings of cuts

The figure, from a formula set up 20 years ago following a national strike, was agreed at a meeting between employers and union leaders in London.

The formula ties the pay of fire crews to the annual pay of manual workers.

The deal will add £48m to the annual pay bill of £868m and will cause employers "real problems", according to one local authority leader.

Lawrence Conlon, chairman of the Fire Authority Employers, said: "We will honour the increase because it is a long-standing formula.

"But the settlement is £13m more than we can afford.

"To meet the extra costs, authorities will either have to make cuts, even more efficiency savings, cut other local authority services to finance firefighters' wages or do all three."

Tony Ritchie, chairman of the Local Government Association's Fire Committee said he wanted to hold talks with union officials to bring greater efficiency to the service to help pay for future deals.

Emergency cover

A spokesman for the Fire Brigades Union said: "We welcome the 5.6% pay rise because we are committed to the pay formula."

Last month Essex firefighters voted to end a series of strikes over proposed cuts to the service.

Essex County Council's plans would have meant the loss of 16 jobs at Chelmsford, Grays and Basildon. The job losses were eventually cut to eight after a series of strikes over a 13-week period.

The strikes forced Essex Fire Authority to hire military 'green goddess' fire services to provide emergency cover.