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Minister warns of ‘tight fiscal position’ amid tensions over public sector pay – UK politics live


Minister urges unions to accept government in ‘very challenging position’ over public sector pay

A minister has urged trade unions to accept that the government is in a “challenging” situation, following a report claiming the pay offers for teachers and nurses could provoke strikes.

Stephen Kinnock, the care minister, was responding to a report in the Times suggesting that public sectors workers could be offered above-inflation pay rises – but with the increases having to be funded from departmental savings, which is opposed by some unions.

In their Times story, Steven Swinford and Chris Smyth say:

Millions of public sector workers including teachers and nurses should be given pay rises of as much as 4 per cent, ministers have been told in a move that will put further pressure on Rachel Reeves.

The Times has been told that the independent pay review body representing 514,000 teachers has recommended a pay rise of close to 4 per cent, while the one for 1.38 million NHS workers has recommended closer to 3 per cent.

The pay rises, for England, are significantly more than the 2.8 per cent that the government budgeted for and are likely to place further strain on public finances. Schools and hospitals will be told to find efficiency savings to help meet some of the costs.

Swinford and Smyth say the NEU and NASUWT teaching unions have both threatened strike action if schools do not get extra funding to pay for the salary increase for teachers. And nurses have also not ruled out further strike action, they say.

Times splash
Times splash Photograph: Times

Kinnock, who was doing an interview round for the government this morning, confirmed that the government was looking at the pay review body recommendations, and did not deny the figures quoted by the Times.

Referring to the more confrontational approach taken by the Tories, Kinnock told Times Radio the government wanted “a proper grown-up conversation” with unions “where we sit around the table and hammer it out rather than all the performative nonsense that we saw under the previous government”.

He said he hoped that unions would recognise that the government was in a “very challenging position”. He said:

We’re very keen to support working people across the country. But of course, we do need to also ensure that any pay deal that is done is within the fiscal constraints. And it is a very tight financial position. And I’m very hopeful that our colleagues in the trade union movement will recognise that.

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No 10 confirms no extra money will be set aside for public sector pay rises beyond what has already been allocated

Downing Street has confirmed that there will be no extra money to fund pay rises for public sector workers beyond what was set out in last year’s budget.

Asked about a Times story saying that public sector pay bodies are recommending above-inflation increases, which might require the pay rises to be funded by savings elsewhere in departmental budgets, the PM’s spokesperson said “there’ll be no additional funding for pay if recommended awards exceed what departments can afford”.

According to the Times, public sector pay review bodies are recommending pay rises of as much as 4% for teachers and 3% for NHS workers. (See 10.04am.)

Asked about this, the spokesperson said:

The Treasury’s economic evidence published in December said that the budget set the spending envelope across the parliament and departmental settlements for 25-26 and beyond will need to fund the next round of public sector pay awards.

And there’ll be no additional funding for pay if recommended awards exceed what departments can afford.

The spokesperson the public sector pay bodies are now making their recommendations to government. The government will then have to respond, but “we are not at that stage of the process”.

Last year the government did accept the recommendations, he said.

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