The Prime Minister Keir Starmer is expected to give an above inflation 5.5 per cent pay rise to teachers and nurses.
It is understood that the Labour had only budgeted for a 3 per cent pay rise which has led experts to claim the extra cash needed will have to come from taxes or borrowing.
The independent pay review bodies which represent over 500,000 teachers and over a million nurses have both recommended pay rises of around 5.5 per cent.
This pay rise is in line with that given to the private sector.
If Labour do refuse to support the recommendation it could lead to the government being impacted by the same strike action which dogged the Conservative government for the better half of the last four years.
During the election, Sir Keir and Labour ran on a pledge that their plan would be ‘fully costed’ and the party would not raise taxes on workers aside from those stated in their manifesto
The independent pay review bodies which represent over 500,000 teachers and over a million nurses have both recommended pay rises of around 5.5 per cent (stock image)
Daniel Kebede, the general secretary of the National Education Union, told The Telegraph: ‘If the Treasury intervenes and makes a pay award below 5.5 per cent, that would be highly inflammatory and a strike would be unavoidable’ (stock image)
Therefore, Sir Keir who was elected on a promise to bring stability to the UK might not want to risk a renewed battle with the Unions.
The Daily Telegraph reports that the government could support an above-inflation but experts have warned that if the 5.5 per cent pay rise was given to every worker in the public sector it would cost £10billion.
Paul Johnson, the director of the Institute for Fiscal Studies, said if implemented the recommendations ‘can only come from higher borrowing than they’re planning, higher taxes than they’re planning or cuts in spending elsewhere. There is no fourth option.’
During the election, Sir Keir and Labour ran on a pledge that their plan would be ‘fully costed’ and the party would not raise taxes on workers aside from those stated in their manifesto.
However the risk of strike action could soon loom over the government if it does not introduce the proposed wage increases.
Daniel Kebede, the general secretary of the National Education Union, told The Telegraph: ‘If the Treasury intervenes and makes a pay award below 5.5 per cent, that would be highly inflammatory and a strike would be unavoidable.’
