Rishi Sunak’s pay increase for seven million people…but HOW WILL WE PAY IT? Higher wages for public sector employees are awarded by the Chancellor. This raises questions about where the money is coming from.

  • Rishi Sunak stated that more than seven million employees will receive a pay increase in the Budget
  • The Chancellor announced that public sector employees will be rewarded with the new Budget.
  • He also stated that the minimum wage would be increased to increase the incomes of the least well-off.
  • This comes as the country faces an estimated £400billion bill for the Covid crisis










Tomorrow’s Budget will provide a pay increase for more than seven millions workers.

Rishi Sunak declared last night that it was right to pay higher wages to employees in the public sector because the economy was firmly back on track.

Around 5.6million staff – including nurses, teachers and members of the Armed Forces – will have an increase from April when a one-year salary freeze ends.

On Monday Rishi Sunak announced he would lift a freeze on public sector pay that was imposed last year because of the pandemic

Rishi Sunak, the public sector’s chief executive, announced Monday that he would lift a pay freeze imposed by the Pandemic last year.

At the same time, the minimum wage will rise by 59p to £9.50, boosting the incomes of two million of the lowest paid.

The Chancellor insisted that his plans would lead to a stronger economy.

But there were immediate questions as to where the money would come from with the country facing an estimated £400billion bill for the Covid crisis and the Treasury having already made spending pledges worth billions of pounds.

Business leaders warned that the minimum wage increase could cause financial difficulties for struggling businesses and raise inflationary concerns.

Campaigners warned that the increase in public sector pay could upset private sector workers confronted with a cost-of-living crisis. 

Police officers are among those public sector workers expecting a pay rise

Police officers are among the public sector workers who expect a raise in their pay. 

The announcement was made as follows: 

  • Mr Sunak ruled out slashing VAT on household energy bills – but was urged to think again to ease the pressure on struggling households;
  • As the average pump price soared to an all-time high, petrol companies were accused of ripping motorists with the extension of the freeze on fuel duty.
  • Despite billions of dollars of new spending, ministers did not set a target date for clearing the massive NHS backlog.
  • Critics accused the Chancellor, by delaying plans for overhauling business rates, of driving a “nail in their coffin” on high streets.
  • The Commons Speaker criticized Mr Sunak for not presenting a number of details in the lead-up to tomorrow’s Budget.
  • Rachel Reeves from Labour warned that voters could face record-breaking tax bills, but not better public services.
  • Experts warned that pay increases could be ‘blunted by rising inflation, rising oil bills, and the cost of living crisis.

Last night, Mr Sunak announced that he would lift the freeze on public sector salaries that was imposed last January because of the pandemic.

Rises were stopped for all taxpayer-funded staff, with the exception of the NHS and workers earning less than £24,000.

Last night, Mr Sunak said that the economic impact of the virus and the uncertainty it created meant that we had to make the difficult decision not to pay public sector employees.

“Now, with the economy back on track, it’s right for nurses, teachers, and all other public sector workers who contributed to the pandemic to see their wages rise.”

A pay review body independent of the government determines the salaries for most frontline employees. Its recommendations are expected to be announced next year.

Mr Sunak yesterday also announced that the minimum wage for over-23s would rise to £9.50.

The Chancellor said the increase, which will come into effect in April, will mean a full-time worker on the lowest salary would get a pay rise of more than £1,000 a year – before tax.

Around 5.6million staff – including medical workers, teachers and members of the Armed Forces – will have an increase from April when a one-year salary freeze ends

Around 5.6million staff – including medical workers, teachers and members of the Armed Forces – will have an increase from April when a one-year salary freeze ends 

The 6.6% increase is more than twice as high as the 3.1 percent consumer price inflation rate.

For those aged 21 and 22, the minimum wage will rise from £8.36 an hour to £9.18, while the figure for apprentices will go from £4.30 to £4.81 a hour.

Mike Cherry, of Federation of Small Businesses, stated that the increases must be matched with support for those who can’t afford to keep their jobs.

Jane Gratton of British Chambers of Commerce stated that many firms are facing a cash flow squeeze due to rising energy costs, higher prices for raw materials, high levels of interest due to the pandemic and tax hikes.

So while businesses support the minimum wage, the size of this increase – with less than six months’ notice – will cause significant concern.’

Torsten Bell, of the Resolution Foundation, a think-tank on living standards, stated that ‘fast’ rising inflation would consume two thirds the gains for most workers.

John O’Connell, TaxPayers’ Alliance, stated that many people had their lives, businesses, and livelihoods destroyed by the pandemic. Therefore, it’s unfair to expect those same people pay for jobs in the public sector. 

Questions about where the money would come came about from with the country facing an estimated £400billion bill for the Covid crisis

Questions about where the money would come came about from with the country facing an estimated £400billion bill for the Covid crisis

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