The pay reviews suggested that workers should receive pay rises of between 6% and 6.5% for 2023 to 2024. This could cost around 5 billion pounds.
Sunak met with Chancellor Jeremy Hunt to discuss the move this morning with the rise set to affect many public sector workers.
However, this will not include the majority of civil servants.
I have a responsibility to be fair to public sector workers and to taxpayers when making decisions about public sector pay.
And I know you are relying on me to reduce inflation.
I’ll set out how I will achieve all that – live, here on Twitter. pic.twitter.com/KldNZho7Fz
— Rishi Sunak (@RishiSunak) July 13, 2023
The Treasury said that the money may need to come from existing departmental budgets after Rishi Sunak and the Government ruled out extra borrowing.
A formal announcement is expected late today (Thursday) but The Times reported that teachers, junior doctors, police and prison officers are expected to receive between 6% and 6.5% in pay increases.
Jeremy Hunt wants to manage debt and curb inflation
Chancellor Jeremy Hunt said the Government would take “difficult but responsible” decisions on the nation’s finances and public sector pay in order to manage debt and curb inflation.
The current level of CPI inflation is running at 8.7% and Mr Sunak – who has promised to cut it to around 5.3% by the end of the year – wants to avoid pay increases which could fuel a wage-price spiral.
Mr Hunt told MPs on Thursday that “it is important to deliver on the Prime Minister’s priority to get debt falling and to control borrowing to avoid adding inflationary pressures and risk prolonging higher inflation”.
“That means taking difficult but responsible decisions on the public finances, including public sector pay, because more borrowing is itself inflationary.”
WATCH LIVE: Our fair and responsible decision on Public Sector Pay.
