Govt hints at ‘more flexibility’ on public sector pay

Wage increases for some public sector workers will no longer be subject to a 1% pay cap, the Government has indicated.

A letter from the Treasury to the heads of Britain’s pay review bodies says "more flexibility may be required to deliver world class public services".

But the correspondence, sent by Chief Secretary to the Treasury Liz Truss, has been dismissed as "meaningless" by unions, who have demanded a broader pay rise for all public sector workers.

Although the letter said "pay discipline" would continue, it added: "The Government recognises that in some parts of the public sector, particularly in areas of skill shortage, more flexibility may be required… including in return for improvements to public sector productivity."

Last week, letters were sent to the chief secretaries of pay review bodies for doctors and dentists, teachers, police, the NHS, the prison service, and for senior salaries.

Sky’s Senior Political Correspondent Beth Rigby said any rise would be costly for the Government.

She added: "To put it into context, we pay £150bn a year to public sector workers. That means that a 1% rise would cost £1.5bn – that’s a huge amount of money for the Chancellor to have to find."

Unions, however, have insisted that the indications did not go far enough.

GMB national secretary Rehana Azam said: "This cynical and empty gesture shows that the Conservatives still don’t get it.

"Pushing forward with slightly less harsh cuts for a small minority of public sector workers will do nothing to win back the trust and goodwill that has been lost.

"The announcement also does nothing for the low-paid majority of teaching assistants, local authority workers, police support staff and other public sector workers who are not covered by a pay review body."

Unison’s head of health, Sara Gorton, said: "This letter is piling the pressure on the Chancellor. He must now come up with the cash to deliver a decent pay rise for all NHS staff in the Budget in November."

Ms Truss confirmed earlier this month that there would be a 2% increase in prison officer pay and a 1.7% increase in police pay, demonstrating flexibility over increases for the first time.

Unions have been continually demanding action on the pay cap, and motions tabled at the Trade Union Congress threatened nationwide coordinated action if changes were not made.

(c) Sky News 2017: Govt hints at ‘more flexibility’ on public sector pay