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Public sector pay: TUC says wages down thousands since 2010 | Public sector pay: TUC says wages down thousands since 2010 |
(about 11 hours later) | |
Firefighters, teachers and other public sector workers are thousands of pounds a year worse off than they were in 2010, the TUC has said. | Firefighters, teachers and other public sector workers are thousands of pounds a year worse off than they were in 2010, the TUC has said. |
With inflation outpacing the government's 1% limit on pay rises for state employees, real wages are being eroded, said the trades union body. | With inflation outpacing the government's 1% limit on pay rises for state employees, real wages are being eroded, said the trades union body. |
It said prison officers and paramedics were more than £3,800 a year poorer. | It said prison officers and paramedics were more than £3,800 a year poorer. |
However, the chancellor has said state sector workers get a 10% "premium" over private sector counterparts. | However, the chancellor has said state sector workers get a 10% "premium" over private sector counterparts. |
The government has come under pressure since the election in June to alter its policy of limiting pay rises in the public sector. | The government has come under pressure since the election in June to alter its policy of limiting pay rises in the public sector. |
'Very generous' | 'Very generous' |
"It's been seven long years of pay cuts for our public servants. And ministers still won't tell us if relief is on the way," TUC general secretary Frances O'Grady said. | "It's been seven long years of pay cuts for our public servants. And ministers still won't tell us if relief is on the way," TUC general secretary Frances O'Grady said. |
Inflation measured by the most commonly used method, CPI, which does not take housing costs into account, has picked up in recent months hitting 2.9% in May. According to the Bank of England it averaged 2.7% a year between 2010 and 2016. | Inflation measured by the most commonly used method, CPI, which does not take housing costs into account, has picked up in recent months hitting 2.9% in May. According to the Bank of England it averaged 2.7% a year between 2010 and 2016. |
The TUC calculates that if firefighters' wages had kept pace with inflation their average pay would be nearly £2,900 higher than it is. For nuclear engineers and teachers the figure is about £2,500. | The TUC calculates that if firefighters' wages had kept pace with inflation their average pay would be nearly £2,900 higher than it is. For nuclear engineers and teachers the figure is about £2,500. |
On the BBC's Andrew Marr Show on Sunday, Chancellor Philip Hammond said public sector pay had "raced ahead" of the private sector after the economic crash in 2008. | On the BBC's Andrew Marr Show on Sunday, Chancellor Philip Hammond said public sector pay had "raced ahead" of the private sector after the economic crash in 2008. |
He added that when "very generous" public sector pension contributions were taken into account, public sector workers enjoyed a 10% "premium" over their private sector counterparts, | He added that when "very generous" public sector pension contributions were taken into account, public sector workers enjoyed a 10% "premium" over their private sector counterparts, |
But Mr Hammond refused to comment on reports he had said at a meeting that public servants were "overpaid". | But Mr Hammond refused to comment on reports he had said at a meeting that public servants were "overpaid". |
TUC wage estimates | TUC wage estimates |
The average pay for an NHS paramedic is £35,577. | The average pay for an NHS paramedic is £35,577. |
But if the paramedic's salary in 2010 had kept pace with inflation measured by CPI, by now he or she should be earning £39,435 - £3,888 more, says the TUC. | But if the paramedic's salary in 2010 had kept pace with inflation measured by CPI, by now he or she should be earning £39,435 - £3,888 more, says the TUC. |
The TUC says if RPI (the inflation measure which does include housing costs) is used, the paramedic would need to earn £41,717 - £6,140 more - to maintain their 2010 spending power. | The TUC says if RPI (the inflation measure which does include housing costs) is used, the paramedic would need to earn £41,717 - £6,140 more - to maintain their 2010 spending power. |
The TUC's analysis suggests workers in different parts of the public sector are out of pocket in real terms to varying degrees (based on CPI): | The TUC's analysis suggests workers in different parts of the public sector are out of pocket in real terms to varying degrees (based on CPI): |
Pay rises for most public sector workers are set by independent pay review bodies, but have effectively been capped at 1% each year since 2013. | Pay rises for most public sector workers are set by independent pay review bodies, but have effectively been capped at 1% each year since 2013. |
Before that, there was a two-year freeze on pay for all but the lowest-paid workers. | Before that, there was a two-year freeze on pay for all but the lowest-paid workers. |
Trade unions plan to submit a petition to the Treasury on Monday calling for the pay cap to be lifted. | |
Find out if your wages are keeping up with inflation | Find out if your wages are keeping up with inflation |
Enter your details below. Source, Office for National Statistics. | Enter your details below. Source, Office for National Statistics. |
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