The UK government has not yet resolved the thorny issue of ongoing public sector pay disputes, despite the fact that these workers are suffering much more from the cost of living crisis than their private sector counterparts. The government is worried about wage increases pushing up inflation that is already sky-high, but recent data shows that giving these workers more pay is unlikely to have that effect.
In the year to October 2022, private sector pay increased by 6.8% compared with only a 2.9% increase for the public sector. This disparity has lead to widespread industrial action in the UK in recent months. On a longer-term basis, a growing pay gap is contributing to acute labour shortages, which is seriously affecting the delivery of public services such as healthcare and education.
