Millions of UK public sector workers set for above-inflation pay rise

The chancellor, Rachel Reeves, has said there is ‘a cost to not settling’ negotiations. Photograph: Jonathan Brady/Reuters

Millions of public sector workers are set for an above-inflation pay rise due to be announced by Rachel Reeves next week after more than a decade of austerity.

The chancellor is expected to accept the recommendations of public sector pay bodies for pay increases on Monday – a move economists believe could cost up to £10bn.