Unions have expressed outrage over reports the prime minister plans to block public sector wage increases owing to fears about pushing up UK inflation, which remains worse than in other leading economies.
Recommendations from the independent pay review bodies could be overruled by Rishi Sunak if they are considered unaffordable, the Times reported, because of concerns they could set off a “wage-price spiral”.
The possible move has drawn criticism from union leaders who said a decision to overrule recommendations would have “profound consequences” for future industrial relations, and that playing politics with working people’s incomes would put everyone’s futures at stake.
“Instead of blaming workers who can’t afford to put food on the table or petrol in their cars to get to work, ministers should focus on a credible plan for sustainable growth and rising living standards,” said the TUC’s general secretary, Paul Nowak.
The latest wave of public sector industrial action is expected next month, with junior doctors to strike across England for five days in July – the longest such stoppage in the history of the NHS. Teachers have also planned fresh strikes for 5 and 7 July.
Increased pressure on the government to improve its pay offer comes as pay review bodies for teachers and junior doctors have submitted advice to ministers, expected to be released next month alongside formal pay offers.
An independent review body is to recommend a 6.5% pay rise for teachers in England, the Guardian previously reported. The government last offered junior doctors 5% to end the long-running dispute, which was rejected.
The government is still struggling to bring down inflation despite Sunak’s promise to halve it.
Last Thursday the Bank of England increased interest rates to 5% from 4.5% – the 13th hike in more than 18 months. UK inflation remains stubbornly high at 8.7% and UK household bills are among the biggest risers in the G7, while mortgage rates are at their highest level since the 2008 financial crisis.
Responding to reports, the general secretary of teacher’s union NASUWT said the secretary for education, Gillian Keegan, risks demonstrating even more contempt for the profession and a disregard for children’s education should she ignore the pay review body process.
“Education is already being damaged by the worst teacher recruitment and retention crisis in over 50 years but the education secretary appears willing to turn the current crisis into an unmitigated disaster,” said Patrick Roach.
“If the government chooses to ignore the recommendations of the pay review body, this will have profound consequences for future industrial relations, with industrial action likely in the autumn,” he added.
An HM Treasury spokesperson said: “We have now received the recommendations from most of the pay review bodies. The government is considering these and will respond in due course. No decision has been taken at this time.”
