TPA Calls on Government to Scrap Nationalised Pay Bargaining

In light of today’s announcement on public sector pay, the TaxPayers’ Alliance are calling on the Government to scrap nationalised pay bargaining.

Responding to the government’s announcement that it is beginning to remove the 1 per cent public sector pay cap, Chief Executive John O’Connell said:

"The government should scrap nationalised pay bargaining and give departments and institutions more flexibility to set their own wages.

"As long as public sector pay rates are set nationally, public sector workers will be relatively underpaid in some areas and relatively overpaid in others. That means many teachers and nurses are struggling to make ends meet, so the government must urgently decentralise pay bargaining to better reflect local conditions and save taxpayers' money. What's more, it will put an end to the swings between largesse in the good times and restraint in the bad.

"It’s important to remember that workers in the private sector are struggling as well. Public sector workers are on average 10% better off than their private sector counterparts, especially when taking into account generous final salary pension schemes. The long-term cost of those pensions will unfairly fall squarely on the shoulders of our children and grandchildren, so it's crucial that the government remains committed to getting the books balanced."

Click here to read our latest research report on Public Sector Pay