Government recommends 2.8% pay rise for public sector

Government departments have recommended a pay rise of 2.8% for millions of public sector workers including teachers, NHS staff and senior civil servants next year.

Unions responded by saying the proposed pay increase was too low, with one threatening strike action.

The British Medical Association (BMA) said there was a "very real risk" of further industrial action if "pay erosion" was not addressed, while Unison's Helga Pile said the proposal was a "bitter pill".

The recommendations will now be considered by public sector pay review bodies.

Justice Secretary Shabana Mahmood emphasised the government's move was just "the start of that process".

She added that unions should recognise the "extremely difficult" financial backdrop Labour had inherited from the Conservatives.

Inflation - which measures price changes over time - is predicted to average 2.6% next year.

The government said departments would have to fund 2025-26 and future pay increases from their own budgets.

Unlike in recent years, there would be no additional money if recommended pay awards exceed what departments can afford, it added.

Officials would have to consider whether additional costs could be covered through other savings or improvements in productivity, the government said.

After winning power, the new Labour government accepted a series of above-inflation pay rises for public sector workers for 2024-25, bringing an end to long-running strikes.

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