Miserable pay increase is a real terms pay cut
The public sector pay increase announced yesterday is unduly harsh pay settlement for the million public sector pay workers who are being told they can only have a 1.9% increase when inflation is now running at 4.2% - in other words, they are getting a 2.3% pay cut.
The reasons given are, firstly the state of the public finances, which is of course the Chancellor’s responsibility, but I don’t see why nurses should have to bail him out. If there are to be stringencies I don’t think nurses should only get an increase of less than 10 pounds a week, when junior doctors are getting nearly 20 pounds a week, senior civil servants 40 pounds a week extra and judges 80 pounds a week extra.
The second reason given is the need to keep inflation under control. But the Treasury itself said the inflation increase has been a blip and inflation will fall this year anyway. I don’t see why a temporary blip should be used as an excuse to impose a real terms pay cut on some of the poorest and most needed workers in our society.
This is bound to play badly on the chancellors standing with the unions. They expect him to be fair and equitable in the way he settles public sector pay and I don’t think this increase meets that criterion. This pretty miserable settlement should be reconsidered.