2.8% public sector pay proposal ‘just the start of the process’, says minister

A Cabinet minister has said Government proposals to raise pay by 2.8% for millions of public sector workers are just the start of the process as she sought to quell a union backlash.

Justice Secretary Shabana Mahmood said she would not “get ahead of” the recommendations of reviewing bodies, which will consider the Government’s suggestions before offering departments advice on levels of remuneration.

Unions representing teachers, doctors and nurses have condemned proposals among Whitehall departments to increase workers’ pay by 2.8% next year, arguing that the rise, which is 0.2% above projected inflation, is too low.

The Justice Secretary told BBC Breakfast on Wednesday: “So what I would say to trade unions and everybody else… this is the start of that process, and of course, I would hope that they recognise that the Government’s fiscal inheritance has been extremely difficult, and we do have to make sure that the books overall balance as well, and that pay is on a sustainable footing.

“This is the start of that process, and I wouldn’t want to get ahead of where we think the pay review bodies might ultimately make their recommendations.”

The Department of Health and Social Care, the Cabinet Office and the Department for Education have all recommended 2.8% pay rises for staff in 2025-26.

The proposals came after Chancellor Rachel Reeves called for every Government department to cut costs by 5%, as she started work on a sweeping multi-year spending review to be published in 2025.

Unions reacted angrily to the recommendations, with some hinting they could launch further industrial action unless negotiations take place.

The Royal College of Nursing’s general secretary and chief executive called for “open, direct talks now” to avoid “further escalation to disputes and ballots”.

The British Medical Association said the Government showed a “poor grasp” of unresolved issues from two years of industrial action, while the National Education Union’s chief said teachers were “putting the Government on notice” that the proposed increase “won’t do”.

Inflation is predicted to average 2.5% this year and 2.6% next year, according to forecasts from the Office for Budget Responsibility.

Unison said the proposed 2.8% rise was “barely above the cost of living”, while Unite said the NHS recruitment and retention crisis “will not be solved without taking the issue of restorative pay seriously”.

Independent pay review bodies will consider the Government’s proposals along with other evidence before making recommendations to departments on the level of pay.