A Treasury minister has again refused to commit to public sector pay rises, citing the need to consider the impact of persistently high inflation.
Speaking on Sky News’ Sophy Ridge On Sunday program, John Glen said the government may reject recommendations from independent review bodies.
This is due to concerns wage increases of approximately six percent for teachers, police officers, and junior doctors could exacerbate price hikes.
The chief secretary to the treasury emphasized the government’s determination to address inflation, which he warned would be challenging to reduce.
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Despite efforts to curb inflation, it remained at 8.7 percent in May, prompting the Bank of England to raise interest rates to a 15-year high last week, affecting mortgage-holders.
Prime Minister Rishi Sunak has also expressed a willingness to make unpopular decisions regarding public sector pay, saying “inflation is the enemy.”
Unions have expressed frustration following reports ministers are likely to deviate from the recommendations of independent pay review bodies.
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While these proposals are not legally binding on the government and can be rejected or partially ignored, they are typically accepted.
However, such a move would be controversial, as the government defended last year’s below-inflation pay rises by stating that they had followed the bodies’ advice.
This development has the potential to exacerbate ongoing labor disputes and lead to increased strike action.
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Mr Glen said: “As a matter of principle pay review bodies are a very significant part of resolving the pay issues.
“But obviously we’ve also got to take account of the effect on inflation.
“That would be irresponsible not to do that.”
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“Obviously I’m very aware of the massive contribution that teachers, nurses and public sector workers make and we’ve got to get the right outcomes that are fair to them, but also aren’t inflationary.
“Inflation is going to be tough to get down. It is something that we are focused on and we are united and determined to do so.”
Labour’s shadow communities secretary Lisa Nandy told the Ridge programme: “If we were in government right now we would be asking the pay review bodies to give far more weight to the retention and recruitment crisis in the recommendations that we make.
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“We’d take seriously their recommendations but we wouldn’t be bound by them.”
Mr Sunak told the BBC: “When it comes to public sector pay I’m going to do what I think is affordable, what I think is responsible.
“Now that may not always be popular in the short term, but it’s the right thing for the country.”
Defending the rise in interest rates, Mr. Sunak said: “The Bank of England is doing the right thing. The Bank of England has my total support. Inflation is the enemy for all the reasons that we have talked about. Inflation is what makes people poorer.”
