Teachers and nurses among millions of public sector workers that should get 5.5% pay rise, ministers told

20 July 2024, 07:19 | Updated: 20 July 2024, 10:41

Teachers and nurses are among millions of public sector workers who should be given 5.5% pay rises, ministers have been told.

Independent pay review bodies, representing 514,000 teachers and 1.36 million NHS workers, both recommended the above-inflation pay rise as it is in line with increases in private sector pay, according to the Times.

It is a big jump from the three per cent the government has budgeted for, creating a further challenge for Rachel Reeves ahead of her first budget.

Economists have warned £3.5 billion extra will be needed to fund teachers and nurses alone, potentially meaning more tax rise, spending cuts or increased borrowing.

Read more: Government to begin formal talks with junior doctors to end long-running pay row

Read more: Average water bill to go up £94 over five years - see how much more you are set to pay

How tough should the new Health Secretary be in negotiating NHS pay disputes?

The recommendations are expected to cause further clashes with unions too, if the government chose to against the advice.

Keir Starmer has previously said that he is ready to face down the demands of unions.

Speaking during his first week as PM, he said: “The finances are in a very poor state.

“I think that is obvious. And that’s why we’ve been careful in what we said going into the election and we’ll be careful what we say coming out of it.”

But the ongoing pay dispute could result in more industrial action in coming months.

Union leaders have warned of a "big row" if they are offered less, with it also likely to impact the government's attempt at resetting relations with them.

Other public sector workers, including doctors, dentists, civil servants and police, are expected to see similar recommendations.

Why are so many teachers leaving the UK?

Certain frontline workers have been calling for an above-inflation rise after they were forced to settle for a 5 per cent pay rise last year - despite some senior doctors getting up to 19 per cent and junior doctors being in talks for 12 per cent.

"5.5 per cent is better than we thought and you’d struggle to argue against it,” one health union source told the paper.

"But if the government offered less than that we would get angry. They would really struggle to justify deviating from the independent process.

"It would get things off to a very bad start and the constructive spirit of working together that you could get with a new government would very quickly fall away. Ultimately, they need to find the money or have a big row with the unions."

A government spokesman said: "We value the vital contribution the almost 6 million public sector workers make to our country.

"The pay review process is ongoing, and no final decisions have been made.

"We will update in due course; however, we are under no illusions about the scale of the fiscal inheritance we face.'