Two million public sector workers including teachers and police officers can expect a pay rise in one of Theresa May’s final moves as Prime Minister.
The Treasury is expected to unveil the biggest public sector pay rise for six years on Monday, amid concerns the private sector is ahead on competitive pay.
Police officers and dentists will receive a 2.5 per cent pay rise, soldiers’ pay will rise by 2.9 per cent and teachers will see a 2.75 per cent rise.
It is expected the Treasury will say funding for the pay rise will have to come from existing budgets, barring some extra funding for schools.
The rises do not apply to other public sector staff, such as more junior civil servants and nurses, as their pay is negotiated separately.
The Institute for Fiscal Studies economist, Jonathan Cribb, said the public sector is still failing to catch up to what is offered by the private sector.
“It is the highest nominal pay increase since the coalition. But these increases are still slower than pay rises that are happening on average in the private sector,” he said.
“With the partial exception of schools, there seems to be no new money to fund these pay rises, meaning savings will have to be made elsewhere.”
Boris Johnson had refused to commit to a pay rise for public sector workers if he won the leadership contest.
“Whether it's the police or transport, you've got to make sure - or local government - you've got to make sure that you understand their cares and their needs,” he said.