Public sector pay rise may seem insufficient

MINISTERS yesterday refused to guarantee that millions of public sector workers will get a real-terms rise in wages, despite Chancellor Rishi Sunak promising an end to the pay freeze.

The Chancellor has confirmed he will scrap the UK Government’s year-long public sector pay freeze in his Budget today, paving the way for a possible wage increase next year for those such as teachers, nurses, police and armed forces personnel.

However, there is no guarantee the increase will be higher than the rising cost of living, meaning workers could still feel worse off.

According to the latest available data from the Office for National Statistics (ONS), there were 5.68 million public sector workers registered in June this year.

Mr Sunak has not set out how much wages will be boosted by, with the rises set to be announced next year following recommendations from independent pay review bodies, and business minister Paul Scully refused to guarantee the increases would be above the level of inflation.

“That will be determined by the pay review bodies. The Chancellor is keen to give people a rise,” Mr Scully told Sky News yesterday. “They will then take that into account as they look to what should be an appropriate rise for the public sector, given the public finances.

“I can’t pre-empt what they are going to do. We will see where we are come next April, when the review bodies have reported.”

Mr Scully also acknowledged that the UK economy is going through a “difficult time” in terms of cost-ofliving pressures.

Downing Street also declined to guarantee inflation-busting pay rises or to confirm whether there would be extra money for departments to increase wages.

Unions have urged Mr Sunak to commit to an above-inflation rise and to guarantee new money for departments so that pay increases do not have to come from cuts elsewhere.

TUC general secretary Frances O’Grady said: “We need a proper plan from the Chancellor tomorrow to get pay rising across the economy.

That means a pay rise for all public sector workers that at least matches the cost of living. If Rishi Sunak does not increase department budgets, the pay freeze will be over in name only.”

Unison general secretary Christina McAnea said: “If the Chancellor doesn’t allocate extra money to government departments to fund the much-needed wage rises, the pay freeze will continue in all but name. Anything less than the rate of inflation is, effectively, a pay cut.”

The Chancellor last November “paused” public sector pay increases for 2021/22, with the exception of the NHS and those earning less than £24,000, after heavy borrowing during the Covid-19 crisis. Announcing the end of the freeze, Mr Sunak said: “With the economy firmly back on track, it’s right that nurses, teachers and all the other public sector workers who played their part during the pandemic see their wages rise.”

The Government has also announced it will increase the minimum wage for around two million workers, with those aged 23 and over to see their pay increase from £8.91 an hour to £9.50 as of April 1.