Rishi Sunak has been accused of playing “divide and rule” after he justified freezing public sector by arguing that pay in the private sector had also collapsed.
The chancellor told parliament on Wednesday afternoon that firefighters, teachers, police, members of the armed forces, civil servants, council and government agency staff would have pay rises “paused” to reduce expenditure.
Labour’s shadow chancellor Anneliese Dodds said the freeze would deliver a “sledgehammer” blow to consumer confidence, meaning the private sector would now suffer even more as demand was taken out of the economy.
Trade unions also reacted with anger at the spending review announcement. Dave Prentis, general secretary of Britain’s largest union Unison, described the move as “austerity, plain and simple”.
“Reviving the economy will take a gargantuan effort from everyone,” said Mr Prentis. That means investing in the entire economy, not seeking to divide and rule between the sectors. Key workers mustn’t be taken for granted and left to carry the Covid can.”
RMT General Secretary Mick Cash warned of strike action over the freeze. “It is shameful that the government is employing a policy of divide and rule of private and public key workers, all of who have risked their lives during the pandemic,” he said.
Rehana Azam, national officer of GMB, also said her union would fight against the freeze. “This attempt to divide and rule will put him on a direct collision course with public service workers, and he should know that we fought the public sector pay cap before and we busted it,” she said.
“GMB will not accept more pay cuts for our members at a time when the whole country is relying on them.”
Labour’s deputy leader Angela Rayner was among the opposition MPs attacking the move, calling it an “attack on working class people”.
The chancellor told the Commons that the state of public finances meant he “cannot justify a significant, across-the-board” pay increase for all public sector workers.
Over a million nurses, doctors and others working in the politically-sensitive NHS would get a rise, he said – but pay rises for the rest of the public sector will be “paused”.
One exception earmarked by the chancellor are the 2.1 million workers earning below the median wage of £24,000, who will receive an increase of at least £250.
Mr Suank said the latter policy of protecting people on lower wages would help to safeguard economic demand. “Anyone in the public sector earning less than the UK median salary of £24,000 will receive a pay rise of £250 or more,” he said.
“Taken with all the other things we’ve done, including giving a payrise for those who work in the NHS, this will mean that the majority of public sector workers next year will see an increase in their pay.”
However, the Unite union described the £250 increase for the lowest paid as a “sop” and “insulting”. Assistant general secretary Gail Cartmail said Mr Sunak had delivered “a body blow to the public sector workers” with the wider freeze.
Mark Serwotka, general secretary of the PCS union added: “Civil servants and other public sector staff will feel a deep sense of betrayal at today’s pay freeze.”
Earlier at PMQs, Sir Keir Starmer accusing Boris Johnson of failing to support key workers during the pandemic. “If you’ve got a hotline to ministers, you get a blank cheque, but if you’re on the frontline tackling Covid, you’re picking up the bill.”
