The UK government is expected to approve above-inflation pay rises for all public sector workers in the coming days, according to Sky News.
The decision comes amid growing concerns about the financial and social costs of not settling, which include the risk of further industrial action.
Sources indicate that independent pay review bodies have recommended a pay increase of approximately 5.5 percent for teachers and nurses, aligning their salaries with recent increases in the private sector.
These recommendations are anticipated to be approved by Chancellor Rachel Reeves as early as next week, despite warnings from the Institute for Fiscal Studies that such increases could add an extra £10 billion to the government’s expenses, on top of the 3 percent rise already budgeted.
Sky News’ political editor, Beth Rigby, reported on her Electoral Dysfunction podcast that government insiders are worried about the potential fallout from rejecting the pay review bodies’ recommendations. The primary concern is the likelihood of industrial action from unions, which could generate significant public and political disruption.
A noisy Westminster
“Noise around a new government is the last thing they want, especially after criticising the Conservatives for their handling of pay deals,” Rigby noted.
A Whitehall source echoed these sentiments, stating they would be “very surprised” if the Treasury did not accept the pay recommendations, given the high stakes involved in terms of maintaining labour peace and public sector morale.
