"People cannot shoulder these types of increases being proposed," Ms. Holder said.
Yet critics question whether taxpayers will sustain the increases being proposed.
Those experts said the tiny price increases being allowed by the government were unlikely to spur production of new goods.
In California, state regulators announced that they would order independent reviews of increases being sought by four large health insurers.
In many countries, cuts in education spending have led to cost increases being passed on to parents and lower enrolment.
The burden for New Yorkers may yet grow heavier, with looming fare increases being but part of the problem.
Mr. McKee speculated that the giant increases being threatened would be scaled back to make Mayor Rudolph W. Giuliani "look like a hero in an election year".
AS Balls said more than half of the people affected by benefit increases being capped at 1% would be people in work.
It is understood that the corporation has pointed out that the 1% pay increase is in line with other increases being offered across the public sector.
He said that entry into the PPF would mean future pension increases being significantly reduced, while 58,000 members who have not reached pensionable age would see their payments fall by "at least 10%".
"There's no question we're going to have a terrible time next year, but the actual revenue numbers are not there yet to justify tax increases being essential," he said.
