Public Sector Pay Rises Could Cost up to £10 Billion, Economist Warns

The Government could need up to £10 billion to cover public sector pay increases if reports of a 5.5% rise prove true, an economist has warned. Independent pay review bodies are reported to be preparing to recommend such an increase for teachers and around 1.3 million NHS staff, according to The Times, well above the figure the Government is thought to have been preparing for. Paul Johnson, director of the influential Institute for Fiscal Studies, said he was “not terribly surprised” by the figure, which would be in line with pay rises across the economy, and would cost an extra £3 billion for schools and the NHS alone....