Government must not abandon prudence with public sector pay

Harry Davis June 29, 2017 4:23 PM

Following from the government's announcement that they will review the public sector pay cap ahead of the Autumn Budget, John O'Connell, Chief Executive of the TaxPayers' Alliance, said: 

"It would be a grave error for the government to completely abandon prudence with public sector pay when the nation’s finances are in such a dire state. We must also remember the huge long-term costs to taxpayers of public sector pensions, which are far more generous than those on offer in most of the private sector.

"It's absolutely right that those working in essential services and doing a great job are paid appropriately, but when pay rates are set nationally there will always be parts of the country where public sector workers are relatively underpaid and others where they are relatively overpaid. That means many teachers and nurses are struggling with the cost of living, and until politicians deal with centralised pay bargaining we will see this swing between restraint and largesse recur."

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