Laura Sharman 12 May 2017

Public sector pay cap will ‘cost economy £16bn by 2020’

The 1% cap on public sector workers will cost the UK economy £16bn by 2020, new figures from GMB have revealed.

The analysis shows that the average public sector worker will be £3,300 worse off as their salaries will be kept below inflation.

GMB said a recent survey also showed that 75% of voters supported ending the cap, one of the proposals put forward in Labour’s draft manifesto.

Rehana Azam, GMB national secretary for public services, said: ‘These figures show the public sector pay squeeze is not only cruel and unnecessary – it’s completely self-defeating.

‘Each and every public sector worker – from paramedics and teaching assistants to cleaners and council officers - will be £3,000 out of pocket if this cap is allowed to continue.

'That’s money they need for food, bills and travel from them and their families. But it’s also pinching £16bn from our economy, suppressing growth, and jobs.’

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Housing

Salford City Council
up to £107k
Salford as a place to live, work, invest and visit, and Salford is being rebuilt. Salford, Greater Manchester
Recuriter: Salford City Council

Tutor

Essex County Council
£29377.00 - £30377.00 per annum
TutorPermanent, Part Time£29,377 to £30,377 per annumLocation
Recuriter: Essex County Council

SEND Engagement Facilitator

Essex County Council
£25821.00 - £30377.00 per annum
SEND Engagement FacilitatorFixed Term, Full Time£25,821 to £30,377 per annumLocation
Recuriter: Essex County Council

Finance Administrator Banking WMF2726

Westmorland and Furness Council
£26,403.00 - £26,824.00
They will be working in a fast-paced environment with changing priorities so will need to be adaptable. Cumbria / Various
Recuriter: Westmorland and Furness Council

Lawyer (Property) - WMF2791e

Westmorland and Furness Council
£45,091 to £46,142
A great opportunity has arisen at Westmorland and Furness Council within our Legal Team Kendal, Cumbria
Recuriter: Westmorland and Furness Council
Linkedin Banner