Thomas Bridge 11 March 2014

Public sector pay sees biggest shrink on 2010, figures suggest

Public sector pay sees biggest shrink on 2010, figures suggest image

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.’

Highways jobs

Governance and Assurance Manager

North Yorkshire County Council
£38,813 to £42,683
Are you someone who is methodical in approach with an eye for detail? York, North Yorkshire
Recuriter: North Yorkshire County Council

Business Development Manager (Grow Yorkshire)

North Yorkshire County Council
£34,788 to £38,813 per annum
Do you have an enterprising approach to developing solutions? Are you an exceptional communicator? York, North Yorkshire
Recuriter: North Yorkshire County Council

Enterprise Partnership Officer (Infrastructure)

North Yorkshire County Council
£34,788 to £38,813 per annum
Are you an experienced Project Manager who is methodical in your approach with exceptional attention to detail? Northallerton, North Yorkshire
Recuriter: North Yorkshire County Council

Project Lead - Housing Growth

North Yorkshire County Council
£38,813 to £42,683
Do you have a substantial understanding of the housing market and the housing planning system? York, North Yorkshire
Recuriter: North Yorkshire County Council

Communications Officer

North Yorkshire County Council
£29,636 to £32,029
Are you someone with excellent skills in communications and looking for your next challenge? York, North Yorkshire
Recuriter: North Yorkshire County Council

Local Government News

Latest issue - Local Goverrnemnt News

This issue of Local Government News explores how councils can tackle modern slavery and trafficking in their supply chains, finds out more about Cambridge's first cohousing scheme and the launch of a new project to build a shared service pattern library for local government.

This issue also contains a special focus on children's services and how councils are protecting children following local safeguarding children boards being abolished.

Register for your free magazine