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More than seven million workers will get a pay rise in tomorrow’s Budget.
Rishi Sunak last night declared it was right to award higher wages to public sector employees because the economy was ‘firmly back on track’.
Around 5.6million staff – including nurses, teachers and members of the Armed Forces – will have an increase from April when a one-year salary freeze ends.
Questions about where the money would come came about from with the country facing an estimated £400billion bill for the Covid crisis
At the same time, the minimum wage will rise by 59p to £9.50, boosting the incomes of two million of the lowest paid.
The Chancellor insisted his plans would deliver ‘a stronger economy’.
But there were immediate questions as to where the money would come from with the country facing an estimated £400billion bill for the Covid crisis and the Treasury having already made spending pledges worth billions of pounds.
Business chiefs warned the increase in the minimum wage could hit struggling firms and fuel concerns over inflation.
And campaigners said the boost to public sector pay could anger private sector workers facing a cost of living crisis.
On Monday Rishi Sunak announced he would lift a freeze on public sector pay that was imposed last year because of the pandemic
The announcement came as:
Mr Sunak ruled out slashing VAT on household energy bills – but was urged to think again to ease the pressure on struggling households; With the freeze on fuel duty set to be extended, petrol firms were accused of ripping off motorists as average pump prices hit an all-time high; Ministers refused to set a target for when the enormous NHS backlog would be cleared despite billions of pounds of fresh
