Public sector pay outstrips private sector

November 19, 2015 10:36 AM

The latest ONS statistics of Hours and Earnings show that public sector pay has grown faster than pay in the private sector.

Rising by 1.8 per cent compared to 1.6 per cent in the private sector, public sector workers now earn on average £588.90 per week compared to just £501.20 in the private sector - a gap of £87.70 or over £4,500 per year.

This is all while employees in the public sector enjoy better pensions, take more sick leave, strike more and work less than the private sector.

The Mail reported that several MPs were surprised by the statistics and suggested that it is unfair that the public sector should get pay rises over and above those in the private sector. Others organisations suggested that automatic progression should be abolished, pay should more closely linked to performance and compensation should be capped.  

These are similar suggestions to those we made following our Public Sector Rich List which detailed examples of massive pay and perks in the public sector.

It is clear that for all of the government’s rhetoric on spending restraint, the reality is very different. So it is vital that the Chancellor sets out concrete plans to clear the deficit at the upcoming spending review.

Latest Blogs:

The sugar tax and the public finances

6:00 AM 05, Dec 2016 Harry Fairhead

Working for the taxman

6:00 AM 26, Nov 2016 Harry Fairhead

Further thoughts on the Autumn Statement

4:56 PM 24, Nov 2016 James Price