The Welsh Government has attacked plans announced by Tory leadership hopeful Liz Truss to cut public sector pay outside of London and the south east of England as she U-turned just hours after unveiling them.
The Tory leadership hopeful had said she wanted to introduce regional pay boards to try and save a potential £8.8bn. This would have likely had a severe impact on Wales. Pay for direct employees of the UK Government (such as the DVLA in Swansea, HMRC in Cardiff or passport office in Newport) would have been hit. And any move to cut the UK's public sector pay bill for NHS workers or teachers would cut the money the Welsh Government receives to fund wages here.
After a furious backlash Ms Truss has now U-turned. Her campaign issued a statement blaming the reporting of her comments on the media: “Current levels of public sector pay will absolutely be maintained. Anything to suggest otherwise is simply wrong.”
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The Welsh Government issued a statement saying any proposals reducing public sector pay were “profoundly unfair and wrong”. A spokesman said: “Any attempt by a future UK Government to deliberately penalise public sector workers in different parts of the UK when it comes to pay would be profoundly unfair and wrong and would only serve to exacerbate the already significant challenges of inequality we face across the UK.
“A fair funding settlement right across the UK is what is needed to ensure public sector workers, everywhere, are fairly rewarded. We continue to call on the UK Government to use its financial powers to make that possible.”
In her policy announcement on Monday, Ms Truss had said she wanted "a leaner, more efficient, more focused Whitehall" could save £11bn a year. She said £8.8bn which would come from regional pay boards so wages reflected local living costs. It would have saved money by paying workers in areas with a lower cost of living less than those in the south east of England. Commentators said it could only save as much as £8.8bn if it included wider public sector pay including teachers and NHS workers.
Unionsslammed the proposals with Wales TUC general secretary Shavanah Taj saying: “It’s hard to imagine a more tone deaf and ridiculous set of proposals at a time when workers are facing sharply rising living costs.
“Dedicated public sectors workers will be alarmed that their pay and holidays are under attack. They need a Prime Minister who will deal with the cost of living crisis by getting wages rising.
“Facility time saves money for employers. It provides structures for workplace consultation and allows problems to be resolved before they escalate. You will not get better services from a demoralised workforce, stuck on worse pay and conditions. And the people who rely on these services will suffer too.”
Senedd Member and Welsh Liberal Democrat leader Jane Dodds said that the Conservative Party leadership contest was “a race to the bottom” and the “Welsh public look set to pay a heavy price for the Conservative party’s financial incompetence”.
She also took a shot at the polciy saying it was incompatible with the Conservative Party’s stated aims of “levelling up”. Ms Dodds said: “It is beggars belief that rather than levelling up Wales, Liz Truss is now talking about cutting salaries for thousands of hard-working Welsh workers during an out-of-control cost-of-living crisis.
“The 430,000 Welsh soldiers, police officers and civil servants deserve better than this callous, incompetent and ridiculous proposal. This comes after Liz Truss already sold-out Welsh farmers on the back of her Australian and New Zealand trade deals.”
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