Annal Nayyar reports on Chancellors Spending Review 2013: An end to automatic pay progressions

Annal Nayyar reports on Chancellors Spending Review 2013: An end to automatic pay progressions

The chancellor has confirmed public sector pay rises will be capped at 1% in 2015-16, with an end to automatic pay progressions.

In the 2013 Spending Round, George Osborne said automatic pay progression was ‘antiquated’ and ‘deeply unfair’ to other areas of the public sector and the private sector.

Earlier this month, CBI called for the end of automatic pay rises in the public sector saying it would lead the way for bolder reforms.

The Institute for Fiscal studies said the squeeze on public sector pay to 2015-16 was on course to restore pay relative to private sector pre-crisis level. However, it warned that further cuts beyond 2016 would be harder to deliver.

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