UK public sector pay won’t keep up with inflation: transport minister
BRITISH public sector pay will not be able to keep up with soaring inflation, Transport Minister Mark Harper said on Sunday (Nov 27), as the country faces a wave of industrial disputes. Industrial action is becoming more widespread across Britain’s transport network, and last week Britain’s Royal College of Nursing trade union announced dates for its members’ first strike in more than 100 years.
British consumer price inflation hit a 41-year high of 11.1 per cent in October, but the latest official wage data, for July-September, showed public sector pay rose by an annual 2.4 per cent, while average private sector wages increased by 6.8 per cent.
“I think inflation-matching and inflation-busting pay rises are unaffordable,” Harper said. “We want to try and give all the workers in the public sector who work very hard decent pay rises. But they can’t be inflation-busting pay rises. There isn’t the money to pay for those. We haven’t seen those in the private sector either,” he told Sky News.
Finance Minister Jeremy Hunt said state pensions and most benefits would rise in line with inflation in a budget statement on Nov 17, but announced a longer-term plan for £55 billion (S$91.5 billion) a year of spending cuts and tax rises.
These plans leave little scope for government ministers to approve major pay rises.
Harper said a meeting last week with the heads of Britain’s National Union of Rail, Maritime and Transport Workers (RMT) and Transport Salaried Staffs’ Association (TSSA) had been productive. “We had very sensible discussions, very constructive (discussions),” he said.
Transport unions have said that Britain’s government – which heavily subsidises rail operators – has effectively blocked rail companies from reaching a pay deal with workers. Harper said he wanted to see reforms to working practices in the rail sector – where Sunday working is optional – before agreeing more public funding. REUTERS
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