The UK treasury considers a pay hike for workers in the public sectors

UK treasury considers a pay hike for workers in the public sectors

Latest reports from the UK Treasury suggest of a biggest pay rise for two million public sector workers. Regarded as one of Theresa May’s final acts as a Prime Minister, the new plan will witness a £2bn pay rise for public sector employees.

According to reports, soldiers will allegedly get a 2.9% hike, whereas teachers and other school faculty members will be rewarded with a raise of 2.75%. In another group: dentist, consultants and police officers will benefit from an increase of 2.5% and finally civil servants will observe a 2% increase in payments.

The latest plan will be funded from the existing budget, as the Treasury is expected to proclaim the report on Monday.

As per sources, the workers within England will benefit from an increase in salary, which is expected to be above the level of inflation. A move which is observed to be a result of departure from the public sector, which bought in restrictions on payment through a coalition government.

In the wake of the situation, public sector pay was frozen for a span of two years in 2010, an exception observed among people earning less than £21,000 a year. Pay raises were capped to 1%, below the rate of inflation thereafter. During her reign last year, Theresa May prolonged the cap, after she announced end of austerity.

However, the latest announcement of the pay raises is not applicable to employees belonging to the other public sector, such as junior civil servants, and nurses. According to reports, their pay will be a different matter to be dealt with.

In an expert advice, Jonathan Cribb, who works as a senior research economist at the Institute for Fiscal Studies, said the average pay rises are progressing slower than the pay hikes in the private sector.

In his statement regarding the new plan, he also pointed out that there was “no new money” to fund the rises. He thus insinuated on the fact that “savings will have to be made elsewhere”.