The UK government has advised pay review organisations that oversee wages for public sector workers to take into account recent pay increases. These pay review bodies cover roughly 2.5 million employees and are made up of several groups including government departments. Some unions have criticized the government, fearing that the tone of their advice may mean lower pay settlements. Last year, some UK public sector unions suggested they would withdraw cooperation due to government direction over pay awards, feeling the governance was not independent.
Specifically regarding NHS staff pay, the health secretary has written a letter to the NHS pay review body recommending that they take into account “the historic nature” of the pay awards from 2023 and 2024. Similarly, letters from Cabinet ministers to pay review bodies for teachers, military members and prison officers have informed them that last year, the pay recommended was “historically high” and that some pay rises would impact upon school budgets. About 45% of the UK public sector, with a pay bill of about £100 billion, is covered by eight pay review bodies.
Negotiations this year may be further complicated by falling inflation. Inflation is likely to be lower than the figures used to increase state pensions and benefits that come into effect in April 2022, which are due to increase by 8.5% and 6.7% respectively. In response, sources in the UK government stated that their advice was designed to focus the pay review process on recruitment, retention and affordability. Trade union Unison has stated that addressing pay “so late in the day” means some workers will not receive due wage increases on time.
The pay review process in the UK has been subject to criticism by public sector unions in the past year, with some claiming the process is not independent due to government directions. Critics of the process have pointed out that after review bodies make their recommendations, the government can choose to accept, amend or reject them
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