Union bosses demand massive public sector pay rises

Union bosses demand massive pay rises for public sector workers after Rishi Sunak confirms he will scrap pay freeze at the Budget on Wednesday

  • Rishi Sunak confirmed the public sector pay freeze will be lifted at the Budget
  • But ministers have refused to say whether workers will receive a real-terms rise
  • Union bosses are demanding pay rise take into account cost of living pressures
  • They want Mr Sunak to deliver a pay rise ‘that at least matches the cost of living’ 

Union bosses are urging Rishi Sunak to bring forward a massive pay rise for public sector workers after the Chancellor confirmed a pay freeze will be lifted at the Budget. 

A year-long ‘pause’ on pay hikes is due to come to an end but ministers have refused to guarantee that workers will receive a real-terms increase amid growing cost of living pressures. 

The TUC union has told the Chancellor he must bring forward a ‘pay rise for all public sector workers that at least matches the cost of living’. 

The union also warned that the pay rises must be paid for through new funding and not through existing departmental budgets, warning that otherwise the freeze will be ending ‘in name only’. 

Meanwhile, UNISON said that ‘any pay rise less than the rate of inflation is, effectively, a pay cut’. The latest measure of consumer price inflation stood at 3.1 per cent. 

Union bosses are urging Rishi Sunak to bring forward a massive pay rise for public sector workers after the Chancellor confirmed a pay freeze will be lifted at the Budget

A year-long ‘pause’ on pay hikes is due to come to an end but ministers have refused to guarantee that workers will receive a real-terms increase amid growing cost of living pressures. House of Commons Library figures show average public sector pay is above the private sector

Mr Sunak said the UK economy is now ‘firmly back on track’ after the coronavirus pandemic, allowing him to ease public sector pay restraint. 

The Chancellor will confirm he is scrapping the public sector pay freeze at the Budget tomorrow, paving the way for a possible wage increase next year for more than five million workers including teachers, nurses, police and armed forces personnel. 

The Chancellor ‘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.

Mr Sunak said last night that, with the economy bouncing back following the lifting of virus restrictions, it was ‘right’ that frontline workers would ‘see their wages rise’.   

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

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. 

Downing Street refused to be drawn, insisting the ‘process is for independent pay review bodies to look at’.  

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

But critics have questioned how much better off workers will be considering the Chancellor has already hiked National Insurance and cut Universal Credit as inflation rises.

The TUC said that average earnings have only just returned to 2009 levels as it pushed for the Chancellor to be generous. 

TUC General Secretary Frances O’Grady said: ‘Everyone who works for a living deserves a decent living. But the last 12 years have been the worst period for wage growth since Napoleonic times.

‘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.

‘And ministers should strengthen rights for workers to bargain for higher pay through their unions, and immediately increase the NMW to £10 an hour.’ 

UNISON general secretary Christina McAnea said: ‘This is no cause for celebration. A pay freeze should never have been imposed in the first place.

‘Unless extra money finds its way to ​individual government departments, the freeze will continue. Any pay rise less than the rate of inflation is, effectively, a pay cut.

‘Ministers must also find the ​cash to give NHS workers the proper pay award they’ve more than earned. That goes for council​, school and other public sector ​staff who’ve ​either been offered ​nothing or substantially less than the cost of living.’

In a statement announcing his decision to scrap the public sector pay freeze, Mr Sunak said: ‘The economic impact and uncertainty of the virus meant we had to take the difficult decision to pause public sector pay.

‘Along with our Plan for Jobs, this action helped us protect livelihoods at the height of the pandemic.

‘And now, 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.’ 

Officials said the Government will be requesting ‘full recommendations’ from the respective sector pay bodies, with awards to be announced next year. 

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