Low morale, high turnover, meager resources and relatively weak pay hit the agency hard.
Weak pay saps revenue from income tax and social-security contributions, making it harder for governments to mend public finances.
The MPC also points out that weak pay growth "pointed to the continued existence of slack in the labour market".
Chris Williamson, the chief economist at information provider Markit, said weak pay growth would continue to depress demand in the coming months.
However, there is a worry that rising unemployment, weak pay growth and high inflation could reverse this trend in coming months," he said.
Weak pay growth is set to cut 10p off the figure, with the rate now expected to increase to £7.50 an hour, said the Resolution Foundation.
Experts have speculated that broadening out the terms of the policy could include taking into account factors such as real wages - which despite the recovery are still falling as weak pay growth lags behind inflation.
"The recovery is still not completely secure because spare capacity remains in the economy, and weak pay growth is likely to continue the squeeze on household incomes," said Izza.
