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Most public sector pay 'to rise 1%' Fresh squeeze on NHS pay sparks union strike warning
(35 minutes later)
Most NHS staff and other public sector workers will get a pay rise of 1% next year, the government has announced. NHS staff have been told they will get a below-inflation 1% pay rise next year - but not if they are due to get an annual "progression pay" increase.
About 400 top NHS managers will not get either a progression pay rise or 1%.
Minister Danny Alexander said pay restraint was helping the public finances. But the Unite and GMB unions said they would consult members on taking industrial action.
The Armed Forces, prison officers and judges will also get 1% increases.
Mr Alexander said it would be left to individual departments to decide whether to offer senior civil servants the 1% pay rise.
'Restraint'
But Police and Crime Commissioners are not due to receive the pay increase.
Salaries for police officers, council workers and teachers are determined in a separate process.
In a written statement to Parliament, Chief Secretary to the Treasury Mr Alexander said: "Public sector workers make a vital contribution to the effective delivery of public services. We need to continue with public sector pay restraint in order to put the nation's finances back on a sustainable footing.
"We are delivering on our commitment to a 1% pay rise for all except some of the most senior public sector workers."
'£1bn shortfall'
Separately, Mr Alexander also announced that government departments were not contributing enough to their employee's pension funds.
A detailed review of NHS, teachers' and civil service pension schemes is not due to be published until later in the spring, he said.
"But it is already clear that these will show the level of contributions paid by employers have not been sufficient to meet the full long term costs of these schemes.
"If current rates were allowed to continue the shortfall would be nearly £1 billion a year across the teachers, civil service and NHS schemes.
"The government is therefore taking corrective action, and will introduce new higher employer contribution rates for these schemes from 2015. This will ensure that the contributions paid by public service employers reflect the full costs of the schemes, including the costs of the deficits that have arisen since previous valuations.
"This will not have any impact on existing pensioners, on member benefits, or on the contributions paid by employees in those schemes. Instead it will ensure that pension costs are properly met by employers and do not fall as an additional cost to the taxpayer."