Rishi Sunak may block public sector pay rises saying people 'need to recognise the economic context we’re in'

Rishi Sunak says workers need to "recognise the economic context we are in" as he hints he will ignore recommendations for public sector pay rises. Over the weekend (24-25 June) reports surfaced that one of the ways he plans to tackle soaring inflation is by planning to block upcoming proposals from public sector pay bodies. 

According to the Times, millions of public sector workers risk having a 6% pay rise blocked by the government in concerns that it would fuel inflation. Sunak said he is prepared to overrule the independent pay bodies if the pay rises are considered to be unaffordable as they could set off a "wage-price spiral". 

When asked by broadcasters if public sector pay was a major driving point of inflation at 8.7%, the prime minister said: "Government borrowing is something that would make inflation worse, so the government has to make priorities and decisions about where best to target our resources. And that's why when it comes to public sector pay, we need to be fair, but we need to be responsible as well."

During a visit to Nottingham, when asked why the government was not prepared to pay NHS staff more, the prime minister said: "I think everyone can see the economic context that we’re in with inflation higher than we’d like it and it’s important that in that context the government makes the right and responsible decisions on things like public sector pay.

Sunak goes on to say that while he is pleased over a million NHS workers have accepted the government's pay offer it is disappointing the junior doctors have taken the decision that they have, as over half a million people's treatments have been disrupted - which will make it harder to bring waiting lists down. 

He added: "I think people need to recognise the economic context we’re in and I’m going to make the decisions that are the right ones for the country. That’s not always easy, people may not like that, but those are the right things for everybody that we get a grip of inflation and that means the government not excessively borrowing too much money and being responsible with public sector pay settlements.” 

In response, the Trades Union Congress (TUC) accused the government of "blaming workers who can't afford to put food on the table". While government sources didn't deny the claims, saying that "pumping money direct into the economy risks fuelling inflation" they did say that pay settlements were being kept under review and that no decisions have been made.

Speaking to the Times, Education Secretary Gillian Keegan said: "If we fuel inflation, we will all be poorer for longer… It's impacting the price of everything. But what often looks like the obvious answer - pay me more - we all know how that works". 

However, Department for Education officials said Ms Keegan was speaking broadly about the public sector wages, and not about the outcome of the pay review process. 

TUC General Secretary Paul Nowak said: "UK inflation is not being driven by public servants. Their household budgets are under such pressure that we've got nurses and teachers using food banks. Playing politics with working people's incomes is not only deeply cynical, but it puts all of our futures at stake."