The government’s public sector pay policy is undergoing something of a pressure test. The policy, which limits pay increases to an average of 1% at a time when private sector pay awards are running at twice this figure, is coming under strain from two directions: recruitment and retention, and rising inflation. Continue reading Public sector pay: government policy coming under strain
Government policy on pay usually has little direct influence over the private sector. But the current official limit of 1% on public sector pay awards, which has been in place since 2010, has arguably played a part – alongside reductions in public spending – in damping down pay pressures in the wider economy. The policy has of course been made easier to maintain by the fact that inflation has been relatively low over most of the period. Continue reading Viewpoint: Is the Government flexible on pay?