Public Sector Pay Rise Does Not Math Inflation

In a statement, Chris Grayling, the Transport Secretary, acknowledged that public sector pay rises were insufficient to keep up with inflation. Mr Grayling said, “We are determined to reward those in the public sector for their hard work and dedication, but unfortunately, wage increases cannot match rising prices.”

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The news comes as a blow to many public sector workers who have seen little increase in their wages over the past decade. According to a report by the Office for National Statistics (ONS), real terms pay – considering inflation – has fallen 6.2% since 2010. Many lower-paid roles have been particularly hard hit, with pay falling 7%

The government has announced an end to the current 1% cap on public sector pay rises. However, these increases will be gradual and will not match inflation levels. Mr Grayling said, “We are doing what we can to ensure that pay rises are fair and in line with the cost of living, but ultimately it is a balancing act.”

The announcement has been criticised by opposition MPs who have called for the government to do more to help those on lower incomes. Labour’s Shadow Chancellor John McDonnell said, “This latest pay settlement shows how little this government cares about helping the lowest paid. Pay rises must be above inflation to compensate for the damage done over several years of austerity.”

It remains to be seen whether or not public sector workers’ wages will rise significantly enough to make up for the lost income of the past decade. In the meantime, many will rely on government measures such as Universal Credit to supplement their wages.

With inflation still high, it is clear that much more needs to be done to help those on lower incomes and ensure they receive a fair wage. The upcoming spending review will reveal much more information about public sector pay rises in 2020 and beyond. Only then will we truly know if public sector workers see an end to years of austerity or if the government needs to do more.

what to do

Ultimately, it is clear that the current situation cannot continue if public sector workers are to be adequately compensated for their hard work. The government must take decisive action in the upcoming spending review to ensure that pay rises keep up with inflation and make up for lost income over the past decade. Only then will we know whether or not public sector workers see a fair wage

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