William Eichler 18 July 2023

Public sector pay increases do not add to inflation, think tank says

Public sector pay increases do not add to inflation, think tank says image
Image: Dilok Klaisataporn / Shutterstock.com.

Increasing pay for public sector workers by 10% would not add much to inflation, according to a new report by the think tank IPPR.

A 10.5% pay boost to restore real pay to 2019/20 levels would add at most 0.14 percentage points to inflation if funded by borrowing, the report said.

It also revealed that if an average public sector worker were to receive a pay award of around the 6% announced last week they would still be £1,400 worse off this year on average than just before the pandemic, because wages have not kept up with prices.

IPPR said that the decline in real-terms pay since 2010 had hit the living standards of public sector workers, and had also contributed to the recruitment and retention crisis that is undermining the quality of public services.

IPPR is calling for a 10.5% average uplift this year to restore public sector pay to 2019/20 levels, at an additional cost of £7.2bn beyond last week’s pay offers.

Joseph Evans, researcher at IPPR and one of the report’s authors, said: ‘It’s wrong to claim that giving the public sector a more meaningful pay rise will further embed inflation. Research shows that there is very little inflationary impact from a significant pay rise, but that the need to stop the fall in living standards for public sector workers is urgent.

‘Without an inflation-matching pay rise the public sector will continue to face a triple crisis of falling living standards, a recruitment emergency and declining quality of public services.’

SIGN UP
For your free daily news bulletin
Highways jobs

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Home Support Worker

Durham County Council
Grade 5 - £26,403 - £28,598 pro rata to hours worked (hourly rate - £13.68 rising to £14.82 per hour), (Pay award pending)
We are excited to be expanding our team of Home Support Workers within Bluebell apartments and Hawthron House, a dual scheme comprising of respite / s Durham
Recuriter: Durham County Council

Property Partnership Assistant

Durham County Council
£26,403 to £28,598 p.a. (Grade 5) pay award pending
Are you looking for a new varied role and have experience in income generation, marketing, contract / KPI performance reporting and customer engagemen Durham
Recuriter: Durham County Council

Engineer Hosting and Security

Durham County Council
£35,412 to £39,152 p.a. (Grade 9) pay award pending
A vacancy has arisen within our Hosting and Security Team for an experienced, enthusiastic, and flexible Engineer, with the aim of helping to ensure t Durham
Recuriter: Durham County Council

GRT Site Warden

Durham County Council
Grade 2 £24,796 - £25,185
We are looking to recruit a Gypsy, Roma and Traveller (GRT) Site Warden to support the day-to-day management of our sites. This is an important role i Durham
Recuriter: Durham County Council
Linkedin Banner