Rishi Sunak hikes public sector pay — but the devil’s in the details
LONDON — Rishi Sunak’s finally splashing the cash. But will his latest round of pay rises be enough to calm restive public sector workers?
On Thursday the U.K. prime minister unveiled his latest pay plans for millions of state employees and confirmed he’s backing the independent pay review bodies his government commissioned after months of speculation.
The offers — covering civil servants, the justice system, NHS, the armed forces and teachers — come after waves of strikes that have hit services hard and amid high inflation, which sits at 8.7 per cent.
Sunak’s insisting the hikes are his final offer and that further strikes won’t force his hand.
He’s argued that above-inflation rises — called for by some workers’ reps — will further fuel cost-of-living increases in the U.K. and there’s little appetite from his government to up public borrowing to fund the increases.
But that leaves big questions over how the pay uplifts will be funded. The government promised that a rise in visa fees and extra charges on migrant workers using the health service will meet some of the cost while there will be a civil service recruitment freeze in the Ministry of Defense until March 2025.
Some unions warned cuts to departmental spending will have to plug the rest of the gap. Sunak insisted Thursday the increases will result in “no new borrowing, no cuts to the front line, no new taxes, and no new impact on inflationary pressures.”
As the settlements drop, here’s POLITICO’s handy guide to what each sector asked for, what it’s actually getting and how that’s likely to go down.
Teachers
What they wanted: Teachers have been on repeated strikes over pay in recent months. They rejected an earlier 4.3 percent offer, arguing that inflation makes this an effective pay cut.
What they got: A 6.5 percent pay rise, as recommended by the pay review body.
How it’s landed: The pay rise has been welcomed warmly by the four general secretaries of the major education unions who signed a joint statement with Sunak and his Education Secretary Gillian Keegan. “This deal will allow teachers and school leaders to call off strike action and resume normal relations with government,” the statement said. The statement says “all schools will receive additional funding” to help meet the cost.
Doctors
What they wanted: The British Medical Association has demanded a 35 percent pay increase for months. It argues only this will make up for more than a decade of pay stagnation. Health Secretary Steve Barclay has called that demand “unreasonable.”
What they got: A 6 percent pay rise for doctors and dentists, with junior doctors getting a one-off £1,250 payment on top of that. The most senior managers will get a 5 percent uplift. Other NHS staff got a 5 percent pay offer in June after the government settled on a deal with them after months of strike action.
How it’s landed: The 6 percent figure falls short of the union’s demand, with BMA rep Phil Banfield telling the BBC’s World at One that “this award will not end the dispute, nor will it retain doctors and stop them going abroad.” George Dibb, head of left-leaning think tank the IPPR’s Centre for Economic Justice, warned: “Cutting health budgets to fund junior doctors’ pay rises is self-defeating.”
Senior civil servants
What they wanted: Most civil service pay is negotiated directly with government departments and not set by the center. But the FDA — which represents civil service managers covered by today’s announcement — balloted to strike earlier this year after the government offered a 4.5 percent hike. The union’s general secretary Dave Penman described that offer as “unconscionable given the current economic climate that civil servants face.”
What they got: A 5.5 percent pay rise.
How it’s landed: The FDA’s sounding chirpier about this outcome. It described the recommended pay increases as “fair and acceptable,” with assistant general secretary Amy Leversidge saying “if the government is to address chronic issues facing our public services, the civil service needs to be able to recruit and retain talented, skilled, and knowledgeable civil servants.” However, they’ve warned against “political game-playing” and “short-term thinking” when it comes to negotiating over pay.
Police
What they wanted: The National Police Commissioner’s Council, which took part in the pay review, did not set a recommended pay award in its submission, but warned that real terms pay for officers had fallen by “almost 17 percent” between 2010 and 2022. It called for any hike to “take full account of the current and future economic conditions” and be “fully funded.”
What they got: A seven percent pay rise.
How it’s landed: Police staffing association the Police Federation of England and Wales has given the rise a mixed review. Steve Hartshorn, its national chair, called it “a step in the right direction” but warned it “still fails to take account of the real term cut” officers have endured. He said the government must also come up with “new money for the pay award so that chief officers do not have to cut essential services to the public to fund it.”
Prison workers
What they wanted: The Prison Officers Association (POA) pushed for a 12 percent increase, while the Prison Governors’ Association called for a 10 percent hike.
What they got: 7 percent for prison officers; 5 percent for prison governors and managers.
How it’s landed: POA chair Mark Fairhurst said the offers were “not acceptable” and “in real terms, another below inflation pay award and a pay cut.”
Members of the armed forces
What they wanted: It’s illegal in the U.K. for a non-civilian member of the armed forces to strike or join a trade union, so there’s no union representing them. Conservative backbenchers are often vocal champions of service personnel, however, so Sunak will have been keen not to aggravate his own party.
What they got: A pay increase of 5 percent plus a one-off “consolidated payment” of £1,000 for all full-time U.K. regular personnel. Members of the senior military will receive a 5.5 percent hike.
