If, as you suggest, the contract and handbook are silent on the subject of pay rises, then it becomes a matter for employer's discretion. There is no obligation to award pay increases, either on the basis of increased cost of living or on merit/performance.
Thanks for the link, as has been said you would think if they wanted to keep good staff they would do. My colleague asked in March, they said they'd get back to him and nothing said so far.
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