Reeves suggests public sector workers may receive above-inflation pay hikes | Rachel Reeves

Government May Approve Above-Inflation Pay Rises for Teachers and Public Sector Workers

During a recent interview, Rachel Reeves hinted at the government’s willingness to consider above-inflation pay increases for teachers and other public sector workers. Reports suggest that independent pay review bodies have recommended a rise of about 5.5%, higher than the current 2% inflation rate. While unions welcome this news, the estimated £10bn cost poses challenges for the government’s fiscal rules.

Reeves emphasized the importance of settling pay negotiations to avoid further industrial action and recruitment challenges. She also acknowledged the need for economic growth to support these pay rises. Despite facing significant spending pressures, Reeves assured that decisions would be made in a proper manner, taking into account the recommendations of pay review bodies.

While a junior Treasury minister refrained from providing specifics on the government’s response, Reeves remained committed to managing the economy with discipline. She criticized the previous government’s inaction on key issues, highlighting the need for tough decisions to be made for the benefit of public sector workers.