Public Sector set to Endure Further Pay Restraint until 2019

Millions of public sector workers are set to endure further pay restraint as todays budget confirms the 1% pay cap […]

Ian Snug
8 March 2017

Millions of public sector workers are set to endure further pay restraint as todays budget confirms the 1% pay cap is extended to 2019.

The Chancellor, Philip Hammond, has today presented the 2017 Spring Budget and confirmed that public sector employees will suffer ongoing pay restraint with only a 1% increase on basic pay and an extension of the cap to 2019.


We’re the party of the NHS“, declares Phillip Hammond.

It should be noted that the NHS Pay Review Body is yet to finalise any recommendations for healthcare staff. It is however expected that it will fall in line with other public sector employees and enforce the 1% cap.

Michael Brown, RCN Chair of Council, said; “Today, the Chancellor missed the opportunity to scrap the cap on nursing pay and show this government values NHS staff. In over an hour at the despatch box, the Chancellor failed to mention public sector pay, or the steps his government will take to make up for years of hardship faced by nursing staff, like you”.

“If nothing is done, more staff will leave, piling the pressure on an already overstretched workforce. Ultimately, it’s patient care that suffers. We await an announcement on your pay in the coming weeks. Before then, we must continue to highlight the absurdity of the pay cap, and the damage this is causing to both staff and patients.”


He went to explain that Nurses are seeing a “real-world pay cut” with salaries plummeting by more than 14% in real term. You can use their pay calculator to find out your individual figure. 

Public sector workers alongside NHS staff have suffered 9 years of pay restraint with pay falling dramatically short of the increased cost of living and inflation.

What else was announced in the Budget 2017?

The 2017 Budget also announced an extra £325m for the controversial sustainability and transformation plans (STPs) plus an extra £100 million to enhance emergency care, significantly less funding than what is required, and £2bn of additional grant funding for social care over the next three years, with £1bn available in 2017-18.

An increase in the personal tax-free allowance for 2017 to 2018 to £11,500.


MPs have been awarded a further 1.4% cent salary boost, which will see MPs pay rise from £74,962 to £76,011. Which is well above the 1 per cent cap imposed on public sector workers until 2019.

You can view a full breakdown the budget by The Telegraph.

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