Sunak claws back
» Freeze in public sector » Minimum pay U-turn
RISHI Sunak is expected to deal low- paid workers a double whammy in his first spending review today.
The Chancellor plans to squeeze public sector pay and row back on a planned rise to the minimum wage.
Five million frontline workers – including police, teachers and binmen – will get a real-terms pay cut as the Government tries to plug the black hole created by the pandemic.
And it comes as Britain’s poorest workers look set to get a pay rise worth just 18p an hour.
The Low Pay Commission had consulted on whether the minimum wage for over-25s should rise 49p in April 2021, from £8.72 to £9.21 an hour. But that projection was made in March, before the ravages of Covid. It is understood the Commission has now lowered its recommendation.
TUC general secretary Frances
O’Grady said: “Rowing back on this planned pay rise is no way to treat those who kept the country going through this pandemic. After their dedication through this crisis, the very least our low-paid key y workers deserve is the pay rise they were promised.”
It emerged MPs will not get a £3,300 planned rise after Boris Johnson and Labour leader Keir Starmer made their opposition clear.
Ipsa, the independent body which proposed the rise, is now expected to announce a freeze given the grim economic backdrop.
Mr Sunak will unveil dire forecasts after the pandemic dealt the UK economy its most devastating blow in 300 years.
But he is also promising a multibillion pound package to help people back into work. There will be £2.9billion over three years for a new Restart scheme to help more than a million find jobs.
And there will be an extra £1.4bn to increase capacity in Job Centres, as well as a £375million skills package.
But Shadow Chancellor Anneliese Dodds said: “The Conservatives … clapped for key workers but now they’re freezing their pay and looking to scrap planned minimum wage increases for the private sector.
“That will hit people’s pockets and pull spending out of our small businesses and high streets when many are already on their knees.”
The Tories clapped for key workers, now they’re freezing their pay
ANNELIESE DODDS SHADOW CHANCELLOR