Reeves drops hint towards public sector pay increase above inflation

Rachel Reeves hinted that public sector workers might see an above-inflation pay rise in the coming months on a BBC interview this morning.

The Chancellor said “people won’t have long to wait” on a pay decision for public sector workers in her first interview from Number 11 Downing Street.

She told Sunday with Laura Kuenssberg: “I really value public service workers, in our schools, in our hospitals, in our police as well.

“There is a cost to not settling, a cost of further industrial action, and a cost in terms of the challenge we face recruiting.”

READ MORE: Paul Nowak interview: ‘I’ll tell it straight to Labour – and push for wealth taxes’

It follows a BBC report that independent pay review bodies had recommended 5.5% rises for teachers and some NHS staff, which the Institute for Fiscal Studies (IFS) has warned could come to a cost of £3bn.

IFS director Paul Johnson has said such money would need to be sourced from borrowing, tax rises or spending cuts, according to BBC reports.

The Chancellor added: “We will do it in a proper way and make sure the sums add up.”

READ MORE: Sign up to our must-read daily briefing email on all things Labour


SHARE: If you have anything to share that we should be looking into or publishing about this story – or any other topic involving Labour or the election – contact us (strictly anonymously if you wish) at [email protected]

SUBSCRIBE: Sign up to LabourList’s morning email here for the best briefing on everything Labour, every weekday morning. 

DONATE: If you value our work, please donate to become one of our supporters here and help sustain and expand our coverage.

PARTNER: If you or your organisation might be interested in partnering with us on sponsored events or content, email [email protected].

More from LabourList

DONATE HERE

Do you value LabourList’s coverage? We need your support.

Our independent journalists have been on the ground during this local and by-election campaign, which marks the first key electoral test of Keir Starmer’s government. 

We’ve been out and about with Labour activists and candidates across the country from Bristol to Hull, and will soon be heading to Cambridgeshire and Lancashire – as well as Runcorn and Helsby. We’ve also polled readers for their views on the campaign.

LabourList relies on donations from readers like you to continue its fair, fast, reliable and well-informed news and analysis. We don’t have party funding or billionaire owners. 

If you value what we do, set up a regular donation today.

DONATE HERE