The Daily Telegraph

Public-sector pay cap will be scrapped

- By Christophe­r Hope chief Political correspond­ent

TENS of thousands of police and prison officers will get a pay rise of more than 1 per cent, ministers will announce this week.

The hike will pave the way for similar increases in other sectors as Philip Hammond, the Chancellor, officially drops the sevenyear-old cap on public-sector pay.

The decision risks increasing Britain’s deficit as each 1 per cent rise in public-sector pay is estimated to cost the taxpayer £2 billion, and is likely to be attacked by critics on the Conservati­ve Right.

Public-sector pay was frozen by George Osborne, the former chancellor, for two years in 2010, except for those earning less than £21,000 a year, and since 2013, rises have been capped at 1 per cent – below the rate of inflation.

The increases for police and prison officers are based on the recommenda­tions of independen­t pay review bodies for 2017-18, with recruitmen­t and retention problems being cited in the case of prison officers.

The Treasury will also this week issue guidance on the pay round for 2018-19, which is likely to see the cap eased in other areas where there are similar problems, such as teaching and nursing.

The increase is likely to be announced on Wednesday to coincide with a Labour debate on a large rise for nurses.

Last week, John Mcdonnell, the shadow chancellor, said “inevitably” there would be more strike action unless the Government lifted the public-sector pay cap. Unions at the Trades Union Congress annual conference in Brighton welcomed the increase.

Rehana Azam, the GMB’S national secretary, said: “If real pay rises are now on the cards it will be a huge victory for GMB’S campaign and for public pressure on the Government, but all publicsect­or workers must now receive proper pay rises. That includes those not covered by pay review bodies, such as school support staff, council workers and police. The devil will be in the detail.”

Frances O’grady, the TUC’S general secretary, said at the weekend that a rise of less than 2.6 per cent for public-sector workers would be a “mistake”.

The news came as research claimed public-sector workers are on average 10 per cent better off than those people who work in the private sector.

The Taxpayers’ Alliance said that last year average median gross annual pay was £25,002 in the public sector, compared with £22,500 in the private sector.

Dave Prentis, the general secretary of Unison, said: “All public service workers have suffered from the austerity agenda. It is not just an issue for the police.”

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