HomePoliticsPublic Sector Employees Face Modest Pay Hike as Government Sets 2.8% Increase

Public Sector Employees Face Modest Pay Hike as Government Sets 2.8% Increase

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The government has recommended a 2.8% pay rise for public sector workers, but unions have criticized it as too low. The proposed increase will be funded by departments from their own budgets, with no additional money provided if awards exceed affordability.

The government has recommended a 2.8% pay rise for millions of public sector workers, including teachers, NHS staff, and senior civil servants, for the year 2025-26. Unions have responded to the proposed pay increase by stating that it is too low. The British Medical Association (BMA) has expressed concern about “pay erosion” and a “very real risk” of further industrial action if this issue is not addressed. Unison’s Helga Pile described the proposal as a “bitter pill”.

The government stated that departments will have to fund 2025-26 and future pay increases from their own budgets. Unlike in recent years, there will be no additional money provided if recommended pay awards exceed what departments can afford. Instead, officials will have to consider whether additional costs can be covered through other savings or improvements in productivity.

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Professional bodies such as the Royal College of Nursing and the National Education Union have criticized the recommended pay rise, stating that it is too low and does not address the unresolved issues from two years of industrial action. They argue that fair pay must be matched by structural reform.

The proposed pay rise has been described as “deeply offensive” by some union leaders, who point out that it equates to a mere £2 extra per day for nursing staff. This criticism highlights the ongoing concerns about pay and working conditions in the public sector.

Unions have criticized the proposed pay increase as too low. Departments will fund pay increases from their own budgets, with no additional money provided if awards exceed affordability. Productivity improvements are seen as crucial in meeting pay awards that go beyond inflation. Professional bodies have expressed concerns about the impact of the recommended pay rise on public sector workers.

No Additional Funding Officials will consider whether additional costs can be covered through other savings or improvements in productivity, according to the government.

Quotes from Key Figures

Justice Secretary Shabana Mahmood: “The government’s move is just ‘the start of that process'”.

Helga Pile (Unison): “Fair pay must be matched by structural reform. Let’s open direct talks now and avoid further escalation to disputes and ballots”.

Daniel Kebede (National Education Union): “Teacher pay has been cut by over a fifth in real terms since 2010, hitting teacher living standards and damaging the competitive position of teaching against other graduate professions”.

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