Rishi Sunak signs off big public sector pay awards

Rishi Sunak hailed teachers calling off strike action today as he approved big pay awards for the public sector.

The PM has approved a 6.5 per cent hike for teachers this year, as well as 7 per cent for police and prison guards, and 5 per cent for the armed forces plus a £1,000 bonus.

Junior doctors have also been granted 6 per cent plus a £1,250 lump sum despite rumours that the government could hold off amid ongoing walkouts.

Mr Sunak welcomed an immediate announcement from teachers’ unions that they are set to call off strike action, and urged junior doctors and consultants to follow suit – insisting the offers were ‘fair’ and ‘final’. 

‘No amount of strikes will change our decision,’ he said.  

But he warned that accept recommendations from pay review bodies – after a summit with Jeremy Hunt this morning – meant trimming spending elsewhere because the government will not borrow more.

Mr Sunak and Mr Hunt have indicated that there will not be extra money for departments beyond the 3.5 per cent wage increases that were already planned for. Schools will not lose out because money will be ‘prioritised’ from other parts of the education budget, according to ministers.  

There will also be concerns that the scale of the awards could fuel surging inflation. 

Rishi Sunak could decide today whether to approve huge public sector pay deals as he holds a crunch meeting with Jeremy Hunt

The disruptions being caused to services by public sector pay disputes was underlined today with junior doctors going on strike again (pictured, picket line in central London)

Mr Sunak and the Chancellor (pictured) will meet this morning to thrash out their response, which could be revealed at the same time as the pay advice

Mr Glen told the Commons: ‘Today I can announce that the Government has accepted the headline recommendations of the independent pay review bodies in full.

‘We are doing this whilst abiding by sound money which, as the Chancellor said at Mansion House on Monday this week, is our number one focus.’

He added: ‘It is a fair deal which recognises the anxieties caused by cost of living pressures.’ 

Mr Glen said: ‘There will be no new borrowing or spending to fund the awards. Because more borrowing would simply add more pressure on inflation at exactly the wrong time, risking higher interest rates and higher mortgage rates.

‘Instead, the awards will be funded through a combination of the significant provision for pay that was made at the last spending review, greater efficiency and reprioritisation.

‘Departments will be reprioritising within existing budgets, and driving further efficiencies to focus where it delivers the greatest value.

‘We will also take sound choices to maximise income.’

Mr Sunak and the Chancellor met this morning to thrash out their response. 

The issue has split the Cabinet, with at least five senior ministers, including Health Secretary Steve Barclay and Education Secretary Gillian Keegan, pushing for the Government to honour the awards. 

They argued it would be much harder to settle the debilitating wave of public sector strikes if the Government ignores its independent advisers.

However, leaving departments to fund anything above 3.5 per cent from within existing budgets would mean billions of pounds being diverted from other spending. 

Mr Hunt told MPs earlier that ‘it is important to deliver on the Prime Minister’s priority to get debt falling and to control borrowing to avoid adding inflationary pressures and risk prolonging higher inflation’.

‘That means taking difficult but responsible decisions on the public finances, including public sector pay, because more borrowing is itself inflationary.’

The wider economic challenge facing the Chancellor and Prime Minister was illustrated by official figures showing the UK economy contracted by 0.1% in May.

Official figures have showed wages across the economy are rising at a record 7.3 per cent, fuelling fears of a wage-price spiral that could wreck the PM’s hopes of halving inflation this year. 

Thousands of appointments are being disrupted as junior doctors in England started their longest walkout yet.

Official figures have showed wages across the economy are rising at a record 7.3 per cent, fuelling fears of a wage-price spiral that could wreck the PM’s hopes of halving inflation this year

The strike started at 7am and ends at the same time on Tuesday.

It was announced yesterday that teachers in England represented by the NASUWT union have voted in favour of industrial action in a dispute over pay.

Nearly nine out of 10 teacher members of the NASUWT union who voted in the ballot backed strike action.

The union – which passed the 50 per cent ballot turnout required by law – plans to stage continuous action short of strike action starting in September in a dispute over pay, workload and working time.

Dates for strike action in the autumn term will also be considered and it will be co-ordinated with other education unions where possible, the union said.