Thomas Bridge Tuesday, March 11, 2014

Public sector pay sees biggest shrink on 2010, figures suggest

Public sector staff have seen the largest pay squeeze since 2010, the wage gap having narrowed between their private sector counterparts.

While average public sector pay is now between 2.2% and 3.1% higher than the private sector once job and worker characteristics are accounted for, figures from the Office for National Statistics suggest this gap has shrunk since the Coalition Government came to power.

Reports suggest the ‘downward trend’ in public sector pay is likely a reflection of earnings freezes established in 2010.

The public sector generally consists of large organisations – which traditionally tend to earn more than small organisations – while the private sector consists of a more even split of sizes.

However, private sector workers in London currently earn on average 8% more than their public counterparts.

Among the lowest 5% of earners in each sector, figures show public sector workers earned 20% more than private sector staff. Conversely, when looking at the top 5% of earners, public sector workers earned 24% less than their private counterparts.

Responding to the figures, Trades Union Congress general secretary, Frances O’Grady, said: ‘Years of freezes, real terms pay cuts and rounds of redundancies have left public servants facing a sharp squeeze in their living standards.

‘Not only do public sector workers earn less than equivalent staff in the private sector, they also face greater job insecurity as hundreds of thousands of posts are set to go in the coming years.’

General Secretary of Unison, Dave Prentis, said: ‘The pay freeze and squeeze has hit public service workers hard, leaving many struggling to get by. The pay cap, coupled with inflation means that for many workers the value of their pay has fallen by 16% since 2010 – a massive pay cut.’

SIGN UP
For your free daily news bulletin
Highways jobs

PA to Service Director - Planning, Transportation and Highways

Wakefield Council
£28,598.00 - £31,537.00, Grade 6, 37 hours
Are you proactive, energised, and ready to thrive in a busy, varied working environment? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Senior Lawyer

Wakefield Council
Grade 10 - Grade 12
Make law matter. Improve lives across the Wakefield District Wakefield, West Yorkshire
Recuriter: Wakefield Council

Team Manager - Child Exploitation and Missing Team

Wakefield Council
Grade 13 SCP 44 £57,770
Are you passionate about making a difference to our citizens and the district that they reside in? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Executive Director of Children’s Services (DCS)

Stockport Metropolitan Borough Council
£149,000 – £175,000
This is a defi ning leadership opportunity in a borough with real momentum Stockport, Greater Manchester
Recuriter: Stockport Metropolitan Borough Council

Director of Adults Commissioning and Provider Services

Trafford Council
£100,731 - £104,625
To help us realise this vision, we are seeking an exceptional Director of Adults Commissioning and Provider Services Trafford, Greater Manchester
Recuriter: Trafford Council
Linkedin Banner