Teachers will be offered a 6.5 per cent pay rise and junior doctors will be offered a 6 per cent rise after Rishi Sunak accepted the recommendations from pay review bodies.
Mr Sunak told a press conference in Downing Street: “Those bodies have considered a range of evidence about where to set this year’s pay. And their recommendations to government are for public sector pay rises to go up by a significant amount.“Now clearly, this will cost all of you as taxpayers more than we had budgeted for. That’s why the decision has been difficult, and why it has taken time to decide the right course of action.
Speaking ahead of the announcement, chancellor Jeremy Hunt said the government would have to take “difficult but responsible” decisions on the nation’s finances and public sector pay in order to manage debt and curb inflation. The current level of CPI inflation is running at 8.7 per cent and Mr Sunak – who has promised to cut it to around 5.3 per cent by the end of the year.
The statement added: “Importantly, the government’s offer is properly funded for schools. The government has committed that all schools will receive additional funding above what was proposed in March - building on the additional £2 billion given to schools in the Autumn Statement. The government will also provide a hardship fund of up to £40 million to support those schools facing the greatest financial challenges.