Sturgeon bows to pressure and scraps cap on public sector workers’ pay rises
● First Minister will announce policy U-turn on six-year squeeze
The Scottish Government will end a six-year squeeze on living standards for hundreds of thousands of public sector workers when it scraps a controversial pay cap this week.
Nicola Sturgeon will confirm the change after coming under sustained pressure from opposition parties and facing difficult questions on public sector pay from voters during the general election campaign.
Announcing the U-turn after rejecting calls to increase pay for public sector workers earlier this year, the First Minister will say the move signals a bold new phase in her government.
But opposition parties said help should have been offered sooner to families under pressure, and called for further investment in public services.
Earlier this year the SNP defeated a Labour attempt at Holyrood to scrap pay restraint for NHS Scotland staff, but Finance Secretary Derek Mackay later signalled a rethink.
Ms Sturgeon also said the cap would be reviewed after she was accused of being out of touch by an NHS nurse in a television debate.
A Scottish Government source confirmed that pay settlements for public sector workers would “take account of the cost of living” from next year after half a decade of being outstripped by inflation.
This week’s Programme for Government announcement will also include reforms on the environment and housing.
The source told a Sunday newspaper: “The Programme for Government will make clear that the time has come to ditch the 1 per cent pay cap for the public sector.
“The cap will go from next year and future pay policy will take account of the cost of living. We need to ensure that future pay rises are affordable, but we also need to reflect the circumstances people are facing, and recognise the contribution made by workers across the public sector.”
Interim Scottish Labour leader Alex Rowley MSP said: “This SNP U-turn is long overdue – and it is welcome to see that Derek Mackay has finally followed Labour’s lead to end the pay cap.
“The SNP voted down a Labour motion to end the pay cap for our hard-working nurses earlier this year.
“This SNP’S change of heart should be followed by a commitment to go further and use the powers of the Scottish Parliament to end austerity and invest in public services.”
It comes as the UK government comes under growing pressure from Jeremy Corbyn’s Labour Party to ease pay restraint for public sector workers.
Prime Minister Theresa May’s Cabinet is split on the issue of the pay cap, which has been in place since 2013, preceded by a two-year freeze.