Rishi Sunak expected to impose public sector pay cap in spending review

R

ishi Sunak is reportedly set to impose a pay cap on five million public sector workers as he seeks to rebuild public finances damaged by the pandemic.

The Chancellor will use next week’s spending review will limit pay rises in the public sector to at or below inflation, according to the Daily Mail.

Only frontline NHS doctors and nurses will be exempt from the cap in recognition of their work during the coronavirus pandemic, the newspaper said.

However teachers, police, members of the armed forces as well as NHS managers will all be affected.

Sunak: Virus rules have significant impact on economy

The Chancellor is under fire over widespread reports he is preparing to set aside the commitment to spend 0.7 per cent of national income on overseas aid.

Launching the spending review in July, Mr Sunak warned of the need for “restraint” in future public sector pay settlements.

He said awards made in the review period would have to take account of the “wider economic context”.

The Chancellor also stressed the need for “fairness” – pointing out that while public sector pay was rising, wages in the private sector had fallen back during the coronavirus pandemic.