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Millions of public sector workers in the UK, including teachers, NHS staff and senior civil servants, have been recommended for a pay rise of 2.8% next year. However, the proposal has faced criticism from some quarters, with unions claiming that the increase is barely sufficient to cover the cost of living, which is predicted to rise by an average of 2.6% in 2025. The proposals will now be presented for independent review.
The government has stated that departments will have to fund future pay increases from their existing budgets. In contrast to previous years, there is no additional money available should recommended pay awards exceed what departments can afford. Officials will need to consider whether any additional costs could be covered through other savings or improvements in productivity. In 2024-25, a Labour government agreed on several above-inflation pay rise proposals for public sector workers, which brought an end to several lengthy strikes.
Two major unions, Unison and the teaching unions, have said that the recommended pay increase is insufficient. The British Medical Association has accused the government of not fully grasping the challenges faced by the healthcare sector. The Royal College of Nursing has described the pay proposal as “deeply offensive.” Several groups have called for direct dialogue to address the issue rather than escalating to disputes and ballots. The National Education Union also claimed that the proposed increase was far less than what was required.
The Department for Education has said that the recommended increase would “maintain the competitiveness of teachers’ pay despite the challenging financial backdrop the government is facing.” However, the National Education Union has said that teacher’s pay has been cut by over a fifth in real terms since 2010, causing harm to teacher living standards and creating a competitive disadvantage for teaching when compared to other graduate professions.
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