Above inflation deal could lead to government having to find an extra £10bn in total across the public sector
Independent pay review bodies representing teachers and NHS workers have reportedly recommended above-inflation pay rises that could require the government to raise up to £10bn, a leading economist has said.
The bodies are going to recommend a 5.5% rise for the 514,000 teachers and about 1.3 million NHS staff they represent, according to the Times, well above the figure the government is thought to have been preparing for. Such a move would present an early challenge to Rachel Reeves’s fiscally rule-bound treasury.