Millions of public sector workers will get inflation-busting pay rises, the Chancellor has confirmed. Rachel Reeves told MPs that the Government would accept the recommendations of the independent pay review bodies, covering key workers including teachers, nurses, police, and armed forces. She said it was the “right decision for the people who work in, and most importantly, the people who use our public services”. Pay hikes are expected to range between 5% and 6% – well above inflation, which has been running at around 2%.
Ms. Reeves confirmed that junior doctors have been offered a major pay bump to bring an end to 20 months of industrial action. The British Medical Association (BMA) said it would put an offer to members that would amount to 22.3% on average over two years. Ms. Reeves said the previous Government had not made recommendations on pay, which she described as “almost unheard of”. The Chancellor said she would approve pay demands at a cost of £9 billion this year. However, departments will have to find savings to meet these costs.
Average wages grew by around 6% in both the private and public sectors last year. But private sector pay has risen by 4% since 2010 when adjusted for inflation, while public sector wages are 2.5% lower.
Teachers and School Leaders
Teachers and school leaders will receive pay hikes of 5.5% from September. The wage increases will be funded by nearly £1.2 billion from the Government, providing a boost to heads grappling with stretched budgets.
Police
Police officers will see a 4.75% hike to their wages from September. The Home Office will provide £175 million in extra cash in 2024-25 to forces to help with the cost of the pay increase. Some National Crime Agency officers, of grades 1-6, are also due to receive a 5% pay rise, funded from the organisation’s existing budget.
Armed Forces
Most members of the armed forces, including new recruits, will see their pay go up by 6%, backdated to April. Members of the senior military (two-star rank and above) will get a 5% consolidated increase to base pay.
Civil Servants and Other Public Sector Workers
Senior civil servants will get a 5% consolidated increase to base pay backdated to 1st of April 2024.
Prison Staff
In prisons, all staff below the top roles will get a 5% base pay increase, with a targeted focus on the lowest paid, backdated to 1st of April 2024.
Judges
Judges will get a 6% hike, also backdated.
The Workers Union says…
“This significant pay rise for public sector workers underscores the Government’s recognition of their essential contributions, especially in the face of ongoing economic pressures. The increases aim to address longstanding pay disparities and provide a much-needed boost to those who serve the public across various sectors.”
