Chancellor Confirms Public Sector Pay Freeze Set To End

The government is set to lift the public sector pay freeze it imposed on millions of workers last year, Rishi Sunak will announce tomorrow. The partial pay freeze was imposed by the chancellor in response to the coronavirus pandemic, and was described by unions as a “kick in the teeth” for key workers.

- Jon Stone

Critics accused Mr Sunak of economic mismanagement for taking demand out of the economy during a downturn, but the chancellor said he wanted public sector wages to match “the context of the wider economic climate” in which wages were falling.

The Treasury briefed the wage plans to the media last night ahead of the chancellor’s Budget tomorrow – despite a warning from the Commons Speaker not to do so.

“The economic impact and uncertainty of the virus meant we had to take the difficult decision to pause public sector pay,” Mr Sunak said in a statement. “Along with our Plan for Jobs, this action helped us protect livelihoods at the height of the pandemic. And now, with the economy firmly back on track, it’s right that nurses, teachers and all the other public sector workers who played their part during the pandemic see their wages rise.”

Frances O’Grady, the TUC’s general secretary, warned that pay rises had to be above inflation and said they could not come at the cost of funding public services. “The pay freeze won’t be over unless the chancellor fully funds pay rises above the rising cost of living. Otherwise, he will force departments to choose between pay cuts or service cuts,” she added.