No public sector pay freezes for the next 5 years

Due to the Coronavirus pandemic our public sector workers have continued to provide service to the public despite the many difficulties, PPE being a prime example.

Our NHS and care home staff have gone above and beyond, do not cripple them or other public sector workers with pay increase freezes.

After the many televised visits to hospitals and government ministers showering public sector workers with praise, it’s only right and proper that we give all of these people the opportunity to recover themselves from the outstanding work they have done.

The British public demand that public sector workers are given proper treatment following the treatment they have given to the British public.

The Government recognises that public sector workers play a vital role in the running of our economy, including in their remarkable commitment to keeping the public safe in the continuing fight against Covid-19. We hugely value and appreciate public sector workers’ dedication and we are working hard to endure that they feel supported and safe to continue the fight against Covid-19.

Throughout this crisis, the government has sought to protect people’s jobs and livelihoods, and support businesses and public services across the UK. The government has spent over £280 billion to do so this year. Since March, the government has helped to pay the wages of people in 9.6 million jobs across the country through the Coronavirus Jobs Retention Scheme (CJRS), protecting jobs that might otherwise have been lost and supported the livelihoods of 2.6 million self-employed workers. However, given the unprecedented impact of Covid-19, unemployment and redundancies are rising in the private sector. The public sector has been shielded from these effects. In the six months to September, private sector wages fell by nearly 1 per cent compared to the previous year, while over the same period public sector pay rose by 3.9 per cent.

Before Covid-19, those working in the public sector were, on average, already getting better remuneration packages than their counterparts in the private sector. The Office for National Statistics (ONS) estimated that public sector workers were paid 7% more than workers in the private sector, after controlling for characteristics and including pensions contributions.

For 2021/22, we will target resources where they will have the most benefit. Given the unique impact of Covid-19 on our health services, and despite this challenging economic context, government will continue to provide for pay rises for over one million NHS workers. This amounts to 25% of the public sector. In setting the level for these rises the Government will need to take into account the challenging fiscal and economic context. The NHS Pay Review Body and Doctor and Dentist’s Review Body will make their recommendations as usual next year. We will also protect the lowest paid, with 2.1 million public sector workers earning less than £24,000 (full time equivalent) receiving a minimum £250 increase. That is 38% of the public sector workforce and will mean a pay uplift of at least 1%.

We are immensely grateful to all our social care workers. They have worked incredibly hard to ensure the wellbeing of those in receipt of care during this pandemic. However, the vast majority of care workers are employed by private sector providers who ultimately set their pay, independent of central government. Local Authorities work with care providers to determine a fair rate of pay

The Government is always immensely proud and appreciative of the public sector and recognises their remarkable commitment to the public throughout this health crisis.

HM Treasury