Magazine article Public Finance

Ministers Have 'Failed to Give Good Reason for Pay Caps'

Magazine article Public Finance

Ministers Have 'Failed to Give Good Reason for Pay Caps'

Article excerpt

The government has failed to give a good explanation for the current squeeze on public sector pay, an independent pay expert told a conference of trade unionists this week.

Alastair Hatchett, head of pay and HR services at analysts Incomes Data Services, said public sector pay restraint first began to bite in 2005.

This, coupled with the government's new enthusiasm for three-year pay deals, meant some groups of public servants could be facing five years with pay rises of just 2.5% a year.

'That's a very big ask from government and no one in government has articulated why,' he told a joint IDS-Trades Union Congress conference on pay bargaining on April 29.

'An explanation for the demand [for public sector pay limits] seems to be lacking.'

Hatchett added that pay bargaining in the public sector was changing, with questions beginning to be asked about the benefits conferred by pay review bodies. …

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