As unions prepared to launch a summer of strikes, a senior official told the two million public sector workers not to expect a pay increase today.
The UK might become “permanently poorer” as a result of an inflation-busting increase, the transport secretary Grant Shapps said, setting off a conflict across a range of crucial businesses.
The Consumer Price Index (CPI) is currently at a 40-year high of 9.1% and may reach 11% this year.
However, organizations that examine compensation for nurses, military, police, and a variety of other professions are anticipated to suggest three to five percent increases.
Two million employees in the public sector were given a warning by a top minister not to anticipate a pay increase today as unions got ready to start a summer of strikes.
Grant Shapps, the transport secretary, issued a warning that an inflation-busting increase might leave the UK “permanently poorer,” igniting a conflict across a range of crucial businesses.
At 9.1%, the Consumer Price Index (CPI) is at a 40-year high and may even reach 11% this year.
However, pay review bodies for a variety of professions, including those involving doctors, nurses, military, police, and others, are anticipated to suggest settlements of three to five percent.
‘This is a spike going through the system caused by Putin’s war in Ukraine and the big upset that’s had to, for example, fuel supplies.
‘It’s very important that we don’t chase that inflation, otherwise we’ll be permanently poorer, and that’s why the plan which gets us back on track as quickly as possible is important – and pay rises will need to reflect that.’
The Chancellor, Nadhim Zahawi, will make an argument today to freeze salary rises in order to cease driving up demand and raising the cost of living.
The planned settlements are much below the anticipated inflation rate, which is anticipated to reach a peak of 11% this autumn.
The measures put ministers in conflict with the major public sector unions, who have threatened to take industrial action this fall.
Only newly qualified teachers are expected to get a more significant rise as part of Tory manifesto plans to raise starting salaries to £30,000 by the time of the next election.
A Whitehall source acknowledged the pay settlements would be tough for many, but said it was essential the Government gets inflation under control.
‘The pay review bodies are independent, but they have to consider what is affordable,’ the source said.
‘You will see most of the settlements come in at around the range of three to five per cent. It is going to be tough for people. But we have to manage things responsibly, and the alternative – letting inflation get out of control – is even more damaging to people’s incomes in the long term.’
Doctors, dentists, nurses, teachers, jail guards, soldiers, judges, and senior civil workers will all have their salary reviewed today.
The Chancellor, Nadhim Zahawi, will make a case for pay restraint today, according to the Telegraph.
The newspaper reported that Mr. Zahawi will comment as follows: “That includes ensuring healthy public finances to prevent pushing up demand even further, offering help for people as they deal with the worst price increases in almost a generation.
‘And, where we can, easing the supply constraints that are the underlying cause of high inflation. The country should feel confident that we can, and we will, get inflation back under control’.
But Pat Cullen, general secretary of the Royal College of Nursing, which is seeking a 16 per cent rise, said nurses would ‘consider industrial action if ministers do not move’, according to the Daily Mail.
She said: ‘There are tens of thousands of vacant nurse jobs and unfair treatment will push more out of the profession.’
Separately, a three-day strike due to start tomorrow by Royal Mail managers belonging to the Unite union has been called off. The union’s 2,400 Royal Mail members accepted proposals on jobs, pay and conditions in a ballot by almost two to one. However, Unite said that the dispute was not over.
The UK’s largest union with more than 1.3 million members providing public services in education, local government, the NHS, police service and energy has also hinted this could mean staff walking out of their jobs.
UNISON head of health and chair of the NHS group of unions Sara Gorton said: ‘Health workers struggling to pay bills have been waiting months for the increase they should have received back in the spring.
‘The public clearly supports an above-inflation pay rise across the NHS. People say they would also be behind NHS staff should they opt for strike action if a decent increase isn’t forthcoming. Ministers must act now rather than stumble into a dispute no-one wants to see.
‘The government must find the money needed or risk worsening the current staffing crisis and lengthening test and treatment waits for patients.’
Chartered Society of Physiotherapy assistant director and secretary of the NHS group of unions Elaine Sparkes said: ‘The NHS has a workforce crisis, and it is unthinkable that the government could be considering making this worse through a pay rise that falls far below inflation.
‘That would cause further staff to leave and place ever-greater strain on those who remain, while increasing waiting times for patients.
‘The government must step up with an above-inflation pay rise that helps recruit, and most importantly retain, the workforce patients desperately need.’
