Prime Minister aims at higher pay raises under pressure from nurses and teachers
Principal Rachel Reeves is facing further pressure from millions of public sector workers, following recommendations they should increase their salary increase by 4%.
The proposal has been proposed by an independent compensation review agency representing 514,000 teachers, up nearly 4%.
Meanwhile, the bodies representing 1.38 million NHS workers' operations raised a 3% increase.
The increase was reportedly higher than the government's plan to rise by 2.8% and would have an impact on public finances.
Efficiency savings are expected to be recommended to help schools and hospitals fund salaries increase. Payments are also expected to be raised to police, prison officers and soldiers.
As the government borrowed nearly £15 billion, the cost of welfare expenditure rose last year while wages rose in the public sector.
The Treasury Department had previously warned the minister that if the compensation review agency recommends an increase in wages, the money will have to come from the budget already established.
The recommendations made by the compensation review agency are expected to be accepted by the government, but are not sufficient to avoid industrial action.
“It will be very bad,” an NHS source said. “These people haven't given them a lot of things in recent years, and we know nurses are igniting for some kind of industrial action, and the union is very frustrated, and it will become turbulent again. ”
“If the government is to provide hospitals, schools, prisons and police with the promised improvements, it is crucial to pay appropriately,” said Ben Zaranko, deputy director of the Institute of Finance.
But, he added: “If salary recommendations are made on the aspects of public service leaders reserved, and no additional funding is coming, it will force ruthless priority and difficult choices elsewhere.”
A Treasury spokesman said the government is considering these recommendations and will respond in due time.
He added: “Last year, the government accepted the full recommendations of an independent compensation review agency, providing the first meaningful internship salary in several years.”
The strike was threatened by the NASUWT teaching union unless the government funded compensation, rather than arising from budget cuts.
Meanwhile, if the offer is “unacceptable” or no additional funding is provided, the National Education Alliance, the largest teaching alliance in England, has promised a formal vote.
NHS workers can also stage further strikes, further undermining hospital services and delaying care for patients.
