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Ministers give up 2008 pay rises Ministers give up 2008 pay rises
(20 minutes later)
Downing Street has announced that all Cabinet ministers will give up their pay rise for this financial year. All government ministers will give up their pay rise for this financial year, Downing Street has announced.
The government has also rejected a £650 a year above inflation rise for MPs for the next three years as recommended by Sir John Baker's review of MPs' pay. The prime minister's decision was approved at this morning's Cabinet meeting, his spokesman said.
The review said MPs should "set the example for public sector pay restraint at a time of economic uncertainty". Gordon Brown said ministers would not accept a pay rise "given the importance of public sector pay restraint at a time of economic uncertainty".
The government is to back proposals from Sir John which would mean MPs no longer vote on their own pay rises. The government is to back proposals from Sir John Baker's review that MPs no longer vote on their own pay rises.
But it rejected a £650-a-year "catch-up" payment for MPs, on top of their annual pay rises, saying: "MPs should set the example at a time of public sector pay restraint."
Ministerial salaries
Ministers will back proposals that MPs no longer vote on their own pay rises, instead they should accept the recommendations of the Senior Salaries Review Body.
They also plan to recommend that MPs' pay increases should be linked to the median average of rises paid to a wide range of public sector workers.They also plan to recommend that MPs' pay increases should be linked to the median average of rises paid to a wide range of public sector workers.
In a statement, Prime Minister Gordon Brown said: "Given the importance of public sector pay restraint at a time of economic uncertainty, ministers will not be accepting any pay rise." It is all very well ministers giving up their pay increase, but this is small comfort to millions of public sector workers who are faced with an effective three-year pay cut Unison spokeswoman
Mr Brown also accepted recommendations from the Senior Salaries Review Body for pay rises next year of 1.5% for senior civil servants, 2.2% for senior military officers and very senior NHS managers, and just over 2.5% for judges.
Ministers' pay should go up in line with that of senior civil servants, who will get a 7% increase over next three years - and were due to get a 1.5% rise in the next year.Ministers' pay should go up in line with that of senior civil servants, who will get a 7% increase over next three years - and were due to get a 1.5% rise in the next year.
But the pay restraint applies only to their ministerial salaries, they will still receive the general MPs' pay rise.
MPs will vote on their salaries on 3 July.
The government's decision over the part year to award in two stages the 2.5% pay rise recommended for public sector workers - meaning they were effectively getting 1.9% - prompted anger from the unions.
A spokeswoman for Unison said: "It is all very well ministers giving up their pay increase, but this is small comfort to millions of public sector workers who are faced with an effective three-year pay cut."
"Those earning an average wage of £13,000 will wonder why a high court judge can be offered a pay increase of over £3,000, when they have to make do with a few hundred pounds."
The union is balloting its local government members on whether they want to strike over a 2.45% pay offer.