Public sector pay cap could be lifted next year

Here’s why

The Prime Minister Theresa May is considering scrapping the one per cent cap on pay rises for public sector workers, according to Downing Street.

The move would see public sector pay rise above inflation for the first time since 2010 with the Sun claiming an announcement to end to the seven-year cap is expected to form the centre piece of the chancellor Philip Hammond’s autumn budget.

May and Hammond are understood to be drawing up plans to raise the pay cap which has capped pay rises in the public sector at one per cent since 2010.

It is reported that scrapping the cap for all public-sector workers would cost £4bn so a staggered approach may be adopted prioritising areas where there are staff shortages such as nursing.

A spokeswoman for the Prime Minister’s said: “We are listening. We know that many people in the public and private sector feel they are just about managing. We recognise the sacrifice that they are making, but there is a process in place and I can’t pre-empt that process.”

This comes as Scotland’s First Minister, Nicola Sturgeon, is expected to announce today that the cap will end in Scotland next year, when she unveils her Government’s legislative programme for 2017-18

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