UK Government Faces Crucial Decision on Public Sector Pay Rises
Chancellor Rachel Reeves considers 5.5% pay increase for teachers and NHS staff amid budget constraints and potential strikes.
- Independent pay review bodies recommend 5.5% pay hikes for teachers and NHS staff, affecting 1.8 million workers.
- Approval of these increases could cost an additional £3 billion for schools and the NHS, with total costs potentially reaching £10 billion.
- Economists warn that substantial pay rises may drive inflation and set off higher pay demands in the private sector.
- Labour government weighs the risk of industrial action against budgetary pressures and the need to control public borrowing.
- Final decision expected by the end of July, with broader implications for other public sector workers and fiscal policy.
The Telegraph 
The Independent 
Evening Standard 