More public sector striking could be on the horizon. Despite recommendations from public sector review bodies, the government could block pay rises. What’s the reasoning behind the decision and how will it affect you?
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News outlets have previously reported that ministers were likely going to block some of the recommendations from review bodies. These recommendations include pay rises of 6% or more for junior doctors, teachers, and police and prison officers. Quite rightly this news has ignited outrage among the trade unions and elicited a warning of “profound consequences for future industrial relations”.
Why would ministers disregard the recommendations of the review bodies? While they do take them into account during their decision making process, they also need to consider the effect the decision would have on inflation. It’s clear that if it turns out a pay raise would worsen inflation, the government would choose this direction.
Prime Minister Rishi Sunak’s goal is to halve inflation by the end of the year, so their top priority is to curb inflation after remaining at 8.7% in May and with interest rates hitting 5% in an effort to control it.
In the reports to the government, review bodies have included a 6% or more pay raise for junior doctors for the 2023-24 year. But ministers have said that this raise, combined with the suggested 6.5% raise for teachers and 6% suggested for police and prison officers, would cost more than £5bn.
It would cause quite the stir if these recommendations are ignored. In the past, the government has accepted recommendations, even when they were higher than initially suggested or higher than what the private sector was receiving. If the pay review bodies recommendations for pay raises are not followed, then unions will respond, with strikes likely to be scheduled for later on in the year.
However, bringing down the NHS waiting list is also a top priority, with plans to train more doctors and nurses to clear out the backlog. But this would take years before the public felt the effects. So the question begs to be asked: why not support the pay raise for the existing doctors working now?
Only time will tell whether or not these pay raises are granted and how inflation will be affected, so be sure to follow up on this story. If you are a junior doctor who could be affected, get in touch to discuss your financial options moving forward. No matter what the outcome of the decision, we can help.