Plans for salary increment in the UK: nhs pay rise 2024/25
Plans for salary increment in the UK: nhs pay rise 2024/25- Ministers reportedly stated that millions of public sector employees should receive a 5.5% wage increase.An analyst has cautioned that if all public sector employees receive this kind of pay award, Sir Keir Starmer’s government may need to spend up to £10 billion to offset the increase.
Ministers have apparently been advised by independent pay review committees that millions of public sector employees should receive a 5.5% pay boost.
The Times noted that the government is believed to have been planning for a much smaller increase than the projected above-inflation rise for teachers and about 1.3 million NHS staff members.
An analyst has cautioned that if the 5.5% raise were granted to all public sector employees, Sir Keir Starmer’s government could need to spend up to £10 billion to finance the pay boost.
In the UK, there are more than 500,000 teachers.
With inflation currently at 2%, it is thought that the government has budgeted for a rise of between 1% and 3%.
The head of the powerful Institute for Fiscal Studies, Paul Johnson, expressed his “not terribly surprised” response to the amount, which would come with salary increases across the board and add an additional £3 billion to the costs of the NHS and schools combined.
“In terms of the cost, there isn’t a specific number that is budgeted for schools, it’s probably 1 or 2%, it’s certainly nothing like 5.5%, so we’d certainly be looking at at least an additional £1bn on schools’ costs relative to what they’re currently expecting,” he said on the BBC’s Today programme.
“And a number at least double that across the NHS if the proposals for the NHS are similar, which it appears that they might be.”
Raising wages might be a major obstacle to Chancellor Rachel Reeves’s first budget, which is anticipated to be unveiled in the autumn. During the election campaign, Labour had ruled out a series of tax increases and pledged to reduce borrowing.
It seems improbable that hospitals and schools will be able to pay the 5.5% pay increase from their current budgets without having to make further adjustments.
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