Reports indicate that Theresa May and Phillip Hammond are drawing up plans to remove the public sector pay cap.
Experts say that Theresa May is drawing up plans to end the seven-year cap on public sector pay, which currently restricts annual public sector pay increases to 1 per cent. It is thought mounting from public sector unions and finally contributed towards this change in policy.
Despite voting against the removal of the pay cap earlier this year, several senior ministers, including Boris Johnson Michael Fallon are in reportedly in support of dropping the unpopular policy.
The announcement is expected to take place when Liz Truss, Chief Secretary to the Treasury, sends guidance letters to the pay review bodies, including the NHSPRB, later this month.
Removal of the pay cap for all 5 million public sector employees would cost an estimated £4 billion a year.
A Downing Street spokesperson said;
“We are listening.
“We know that many people in the public and private sector feel they are just about managing.”
Many claim removal of the pay cap will help with staff shortages in certain areas, such as nursing, teaching and the senior civil service.
