Jessica O'ConnorMillions of public sector workers, including teachers and nurses, are set to receive pay rises of up to 4%, according to a report by The Times.
The move is expected to increase pressure on Chancellor Rachel Reeves as the Government grapples with tighter public finances.
The Times revealed that the independent pay review body for teachers, representing 514,000 staff, has recommended a pay rise close to 4%.
Meanwhile, the review body for NHS workers, covering 1.38 million employees, has advised an increase closer to 3%.
The recommended rises, which apply to England, are significantly higher than the 2.8% figure the Government had originally budgeted for.
Ministers are now facing fresh financial challenges, with schools and hospitals expected to find efficiency savings to help cover the additional costs.
The recommendations are still under consideration by the Government, but if accepted, they would mark a significant boost for frontline workers — and a potential fiscal headache for the Treasury.
Daniel Kebede, general secretary of the National Education Union, said: “Once again, vital information that may decide the future pay of teachers has been leaked to the press.
“This happens every year and the profession will be forgiven for thinking that nothing ever changes.
“Teachers are sick of hearing things through the press. They need to see the full report. It must be published now, and the Government’s intentions on funding this year’s pay award must also be made clear.”
Kebede added “This Government was elected on the promise of change, of recruiting 6,500 new teachers.
“Its existing proposal of a completely unfunded 2.8% rise simply won’t wash. That will only add to the crisis in recruitment and retention, rather than reduce it.
“This morning Paul Johnson of the IFS agreed that the Government ‘could potentially afford pay rises of the 4% level,’ but if they don’t, then the trade-offs will be further damage to teacher numbers.
“The ball is in this Government’s court. They need to ensure the pay award is above inflation, that it takes steps to address the crisis in recruitment and retention, but most of all that it is fully funded.
“No one wants to take strike action but of course as a trade union we do stand ready to act industrially if we need to.”
