Union leaders are gearing up to demand higher pay rises for public sector employees following a surprise spike in inflation.
In December, the Government suggested a 2.8% salary increase for public workers, including NHS staff and teachers, for the upcoming financial year starting in April. This increase was based on the Office of Budget Responsibility (OBR) forecast that inflation would rise at a rate of 2.6%.
However, figures released on Wednesday showed the Consumer Price Inflation (CPI) rate jumped to 3% in January, up from 2.5% in December – the highest rate in 10 months.
In response, union representatives have suggested they may reject the Government’s initial pay proposal, claiming that it would amount to a “pay cut” in real terms, the Telegraph reports.
Daniel Kebede, general secretary of the National Education Union (NEU), emphasised the impact on teachers, stating that with inflation rates climbing, the 2.8% rise would not keep up with the cost of living.
He said: “An unfunded pay award will mean further cuts in schools that they cannot afford to make.
“A below-inflation pay award will deepen the crisis in recruitment and retention.”
Paul Nowak, the general secretary of the Trades Union Congress, echoed the sentiment earlier in the week.
He said: “Our unions will be arguing that it needs to be more.
“But crucially, it needs to be more, not just this year, but there needs to be that route map for the future.”
All teachers in England and Wales, as well as NHS staff across the UK, received an above-inflation pay rise of 5.5% in September and October 2024, respectively. A statement from the National Education Union (NEU) at the time of the increase read: “The 5.5% increase is significantly above inflation, so is a significant first – but not last – step towards the long-term correction in teacher pay we need.”
The independent bodies tasked with reviewing pay for public workers have yet to make their recommendations this year, but the NEU is already preparing for a potential strike vote in early March.
A Government spokesperson said: “It is vital that pay awards are fair for both public sector workers and the taxpayer so that we can deliver mission-led, high-quality services across the country.
“This is why we remitted the independent Pay Review Bodies to provide recommendations for 2025-26, and we will consider these recommendations carefully.”
