Mon, 28 Apr 2025

Mon, 28 Apr 2025 No extra cash for higher pay deals, says Downing Street

Pay review bodies recommend increases for teachers and NHS workers above the 2.8% budgeted for by government.

* The government has ruled out extra funding for pay rises, despite review bodies recommending increases above the 2.8% budgeted by ministers.
* The pay review body for teachers in England recommends a 4% rise, while the NHS equivalent suggests a 3% increase.
* These figures are higher than the 2.8% proposed by ministers and could put further strain on public finances.
* Prime Minister Sir Keir Starmer has said the government will look at the pay proposals "and respond in due course".
* The government's official spokesman has stated that there will be "no additional funding" for pay deals if they exceed what departments can afford, suggesting cuts and efficiency savings would be needed.
* Trade unions have warned of potential strikes if pay rises trigger cuts or layoffs.
* The British Medical Association (BMA) has criticized the government's approach to public sector pay, saying it indicates a "poor grasp" of unresolved issues from industrial action.
* Director of the Institute for Fiscal Studies Paul Johnson has said the government will face "tough" trade-offs when considering how to award pay, and may be forced into tax rises or other spending cuts.
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