Sunak confirms end to pay freeze – but gives no details on increases

Chancellor Rishi Sunak has confirmed that the freeze on public sector pay will end in tomorrow’s Spending Review, but has not set out details of how much pay could rise, or if it will be funded by the Treasury.Reports in recent days suggested the chancellor would use the review to end the one-year freeze introduced in response to the fiscal pressures caused by the coronavirus pandemic. Today he acknowledged that would be the case.There has been no announcement of the scale of the increase, with business minister Paul Scully saying that the rate would be set by pay review bodies.Most public sector roles are covered by pay review bodies that make recommendations to ministers on pay settlements. Although senior civil servants are covered by the Senior Salaries Pay Review Body, all other officials are instead covered by a Treasury pay remit guidance issued to departments, which sets the scope of increases. When the government ended the cap on pay increases in 2018, the Treasury guidance to departments led to civil servants having the lowest pay increases across the public sector.Asked this morning if public sector staff would see a pay increase above inflation, Scully said that would be determined by the pay review bodies.It was also confirmed today that the minimum wage rate is set to increase, with the rate for those aged over 23 rising in April to £9.50 an hour from £8.91.Responding to the announcement, Prospect general secretary Mike Clancy said that ending the cap does not mean public sector workers are definitely going to get a pay rise.Unison general secretary Christina McAnea said that “unless extra money finds its way to ?individual government departments, the freeze will continue”.