Chancellor: Cannot Justify Significant Pay Increase For Public Sector

Chancellor: "The OBR expects unemployment to rise to a peak in the second quarter of next year, of 7.5% - 2.6m people. Unemployment is then forecast to fall in every year, reaching 4.4% by the end of 2024."

• "Today's statistics remind us of something else: coronavirus has deepened the disparity between public and private sector wages. In the six months to September, private sector wages fell by nearly 1% compared to last year; Over the same period, public sector wages rose by nearly 4%. And unlike workers in the private sector, who have lost jobs, been furloughed, seen wages cut, and hours reduced, the public sector has not. "
• "In such a difficult context for the private sector – especially for people working in sectors like retail, hospitality, or leisure… …I cannot justify a significant, across-the-board pay increase for all public sector workers. Instead, we are targeting our resources at those who need it most. "
• "To protect public sector jobs at this time of crisis, and ensure fairness between the private and public sectors, I am taking three steps today. First, taking account of the pay review bodies advice, we will provide a pay rise to over a million Nurses, Doctors and others working in the NHS. Second, to protect jobs, pay rises in the rest of the public sector will be paused next year. But third, we will protect those on lower incomes. "
• National living wage up 2.2% to GBP8.91 an hour.