Time to offer workers real rises, not pay cuts

THE looming start of Brexit talks is a step into the unknown.

But we’re already living with the result of the decision to quit the EU, in higher inflation. It could be manageable if wages were rising as fast.

By rights, record numbers in work and the lowest jobless rate for decades should mean decent pay rises. But ingrained nerves about demanding inflation-matching increases, and the changing nature of work, means many workers feel powerless. Hardest hit are those in the public sector staff, nurses and teachers, on a 1% wage cap. That was hard enough a year ago, when inflation was running at 0.5%.

Now it’s nearly 3%, those workers are suffering a punishing pay cut, in real terms. Firms need to loosen the purse strings when it comes to pay.

And bumbling PM Theresa May must do the same for the public sector.