The TUC has accused the Treasury of a ‘cynical ploy’ after details of a letter from the Chancellor to government departments became public today (Tuesday) that reveal plans for future years of public sector pay restraint.
The fresh information follows a press statement this morning by the Treasury announcing above inflation pay rises for a single year. But it made no mention of the plans for future years of pay restraint. And it covered fewer than one in five public sector workers.
TUC General Secretary Frances O’Grady said:
“It's hard to see how public sector workers can trust ministers after this cynical ploy to disguise plans for more pay restraint.
“In the last decade, we learned the hard way that austerity and pay restraint slow down recovery. People have less to spend. Businesses have fewer customers. And it holds back growth.
“If ministers take this failed approach again, the living standards of both public and private sector workers will take a hit. And the key workers who saw us through the pandemic will be denied the pay rises they have earned. That’s no way to thank key workers.
“The prime minister promised no austerity after the pandemic. We need a recovery plan based on decent jobs with fair pay.”
- Public sector pay and previous cuts: For most years in the last decade, ministers set caps on public sector pay that kept annual increases below inflation, resulting in real terms cuts. Average public sector pay is now worth £900 less today than it was in 2010. And for many the picture is even worse. For example, in real terms:
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