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ITV News political reporter Shehab Khan reports on the government announcing pay rises for millions of public sector workers as inflation squeezes households amid a cost-of-living crisis
Unions are furious after hundreds of thousands of public sector workers were offered a pay rise that failed to tackle the crippling cost of living.
Inflation is just over 9% and is expected to rise further, but most public sector workers will receive an increase well below that rate.
The government’s offer is being described as a real pay cut given how much more expensive products and services have become since the Covid pandemic and amid the war in Ukraine.
Setting pay for 2.5 million public sector workers is one of the last policy decisions left to Boris Johnson’s government before he steps down as prime minister in early September.
Some pay rises apply only to England and Wales, while others are set by ministers in devolved administrations.
All officers in England and Wales will receive a £1,900 pay rise from September 1 – equivalent to a 5% increase in overall pay, the Home Office said.
It works out to around an extra £36 a week.
Home Secretary Priti Patel said: “I am delighted to be able to fully accept the pay review body’s recommendations so that all police officers will see a £1,900 pay rise.
“It is only right that we recognize the outstanding work of our officers who work tirelessly day in and day out to keep our streets, communities and country safe.”
Eligible physicians and dentists will receive a 4.5 percent pay increase.
Most nurses will get a rise of around 3.7%, while basic pay for newly qualified nurses will increase by 5.5%.
The lowest earners such as porters and cleaners will get a 9.3% increase. These workers will receive a weekly increase of around £27.
The pay awards mean more than one million NHS staff will get a pay rise of at least £1,400, the Department of Health and Social Care said.
Unison general secretary Christina Makanea said: “Ministers seem intent on bringing down the NHS by showing no regard for the millions of people waiting on test and treatment lists.
“Instead of saving the NHS with proper investment in staff and services, those vying to be the next Prime Minister want to keep the money for pre-election tax cuts.
“Fed staff may now decide to take matters into their own hands.”
“If there is to be a row in the NHS, ministers will have no one to blame but themselves.”
The government said it fully accepted the recommendations of the independent NHS pay review bodies, adding that the pay rise recognized the contribution of NHS staff while balancing the need to protect the taxpayer, manage public spending and not stimulate inflation .
Experienced teachers will receive a 5% pay bonus and new teachers starting their careers will receive an additional 8.9% from September.
Those who receive an extra 5% will see an average of £40 more in their pay packet per week.
Education Minister James Cleverley said: “Teachers are the fabric of our school system and it is their dedication and skills that ensure young people can leave school with the knowledge and skills they need to get on in life.
“We are delivering significant pay rises for all teachers despite the current economic challenges, raising starting teacher salaries to a milestone of £30,000 and giving experienced teachers the biggest pay rise in a generation.
“This will attract even more high-quality talent to inspire children and young people and reward teachers for their hard work.”
Teaching unions NASUWT and NEU, which threatened strikes in the autumn over pay, said the proposed 5% rise for more experienced staff was too low.
Members of the Armed Forces, which include the Army, Navy and Air Force, will receive an additional 3.75% to rank 1 star.
Officers with 2 or more stars will receive 3.5.
Defense Secretary Ben Wallace said: “This pay award supports wider recruitment and retention and meets the requirements of a smaller but highly skilled armed force, while recognizing affordability.”
All prison staff will receive a bonus of at least 4%, Justice Minister Dominic Raab said.
Explaining that the pay rise was below inflation, Mr Raab said: “This year’s pay awards strike a careful balance between recognizing the vital importance of public sector workers while providing value for the taxpayer, not adding to the country’s debt and are careful not to lead to even higher prices in the future.”
Will there be more public sector strikes?
Unions demanded the pay offer be in line with inflation, which is rising at the fastest rate in 40 years.
The current interest rate is 9.1% and is forecast by the Bank of England to reach 11% before the end of the year.
Unions representing teachers, nurses and doctors have already threatened to strike if pay does not keep up with inflation.
The National Education Union has said it will now consult members about strike action in the autumn, and the NASUWT has previously said it will hold a national strike vote if the government fails to “restore teachers’ pay”.
Mary Boustead, joint general secretary of the NEU teaching union, previously said a 5% increase for more experienced staff would be “unacceptable”.
Laurence Turner, of the GMB union, said: “A below-inflation offer is a cut by another name.
“Recruitment and retention problems are now severe in the public sector and ministers are failing to invest in the services the economic recovery needs.”
Unite general secretary Sharon Graham added: “The Government has promised rewards for the dedication of the public sector workforce during the pandemic. What they delivered instead was, in real terms, a kick in the teeth.
“The so-called wage proposal amounts to a massive national wage cut.
“We expected the inevitable betrayal, but the scale of it is an insult.”
And the impending election of a new prime minister, via the Tory leadership race, is unlikely to allay public sector pay concerns.
All others in the race – Liz Truss, Rishi Sunak and Penny Mordaunt – have ruled out a general above-inflation pay rise if they become leader.
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