William Eichler 23 December 2020

Local government workers impacted by pay freeze already facing ‘pay penalty’

Public sector workers affected by the pay freeze next year already face a pay penalty compared to private sector staff in similar roles, think tank says.

The Resolution Foundation has examined the pay of the 2.6 million public sector workers subject to the coming one-year pay freeze, along with the 2.9 million who are exempt.

The report finds that public sector workers affected by the pay freeze coming into effect next year – such as those in local government and education – already face a 7.9% pay penalty compared to private sector workers in similar roles.

‘The Government has justified the coming public sector pay freeze on the basis of the pay premium these workers will experience as a result of the pandemic. But this is a very poor description of the impact of the policy – with the freeze largely falling on those already experiencing pay penalties relative to the private sector,’ said Hannah Slaughter, economist at the Resolution Foundation.

‘Going forward, ministers must be mindful that while public and private sector pay do move in line with each other over the longer term, there are risks in making that adjustment next April when the economic challenges of the pandemic will still be immense, and consumer confidence needs supporting.’

SIGN UP
For your free daily news bulletin
Highways jobs

Executive Director of Place and Customer

Essex County Council
up to £179,404 per annum
Shape the Future of Essex. Drive climate action. Deliver for our communities. Essex
Recuriter: Essex County Council

Director of Social Work and Social Care

Trafford Council
£100,731 to £104,625
You will join a values-driven senior leadership team, providing visible and responsive leadership. Manchester
Recuriter: Trafford Council

Housing Ombudsman

Housing Ombudsman Service
£130,095 per annum, negotiable based on experience.
The Housing Ombudsman Service allows colleagues to choose if they wish to work in the London office, from home or a hybrid of the two London (Greater)
Recuriter: Housing Ombudsman Service

Lead Commissioning Officer

Essex County Council
£42452 - £49943 per annum + Flexible Working, Hybrid Working
This is a fixed term contract or secondment opportunity for up to 12 months.Interviews will be held on 3rd March 2026.*Experience the best of both wo England, Essex, Chelmsford
Recuriter: Essex County Council

Specialist Tutor - Employability/Well-Being

Sandwell Metropolitan Borough Council
Band E SCP 18-25 (£31,537 - £36,363 per annum)
Sandwell Adult and Family Learning Service has an exciting opportunity for 2 full-time specialist tutors Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council
Linkedin Banner