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Raising Pay Expectations to Meet Inflation Rates by 2025

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As public sector pay reform gains urgency, the TUC is calling on the government to adopt a longer-term plan for funding public services and address the root causes of the crisis.

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The Urgent Need for Public Service Pay Reform

Families want to feel better off and see material improvements in their day-to-day lives. As the general secretary of the TUC, Paul Nowak is calling on the government to be serious about public service pay reform.

The Current State of Public Sector Pay

The current state of public sector pay is concerning. With 150,000 staff vacancies in the NHS alone, and a recruitment and retention crisis across the public sector, a 2.8% rise next year falls short. This figure does not address the crisis and will only lead to further battles over public sector pay.

A Call for Action

Nowak is urging the government to use the six-month-long Spending Review to come up with a longer-term plan for funding public services. He hopes that the government will move beyond the 2.8% figure and consider independent pay review bodies’ reports, which may recommend higher figures.

However, ministers have stated that any further increase would need to be accompanied by improvements in productivity, a measure that is difficult to quantify in certain public sector roles. Nowak emphasizes that the pay and conditions of staff on the front line should not come at the expense of efficiency.

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A Broader Perspective

Nowak acknowledges that there can be too much focus on pay, and working conditions matter too. He welcomes the government’s Employment Rights Bill, which aims to provide more secure, less unstable employment. However, he cautions against extending a proposed nine-month probationary period for new employees, which could lead to easier dismissals.

The Green Agenda and Worker Security

The TUC leader shares the aim of having 95% of energy needs met from “clean” sources by 2030 but remains concerned about the consequences without a detailed plan for workers in fossil fuel industries. A just transition is not enough; concrete plans for job security, income security, and support for affected towns and cities are needed.

Lessons from History

Nowak warns that an industrial transition gone wrong can have devastating consequences, as seen in the closure of mines and steel industries, leaving towns and cities decimated for decades. He urges the government to learn from history and provide a solid plan for workers in the green sector.

The TUC will continue to influence ministers, but it’s clear they won’t always see eye-to-eye. Nowak’s message is one of urgency and the need for concrete action to address the public service pay crisis and ensure that any transition to green power supports workers at the sharp end.

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