Plans to pause pay increases for public sector workers could cost England’s economy £1.7 billion, the TUC has claimed.
New analysis by the union found the changes to pay could weaken the economy as those working in the public sector were forced to “tighten their belts”.
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In last November’s Spending Review, which was blasted by campaigners as “a missed opportunity”, Sunak promised a pay rise for NHS doctors and nurses but other public sector workers such as teachers and policemen had their pay frozen.
TUC general secretary Frances O’Grady said this amounted to a pay cut when inflation was taken into account.
“Key workers have kept the country going through the pandemic. The prime minister clapped them, but his applause will ring hollow if he cuts their pay,” she said.