LONDON (Reuters) – Britain’s finance ministry said on Monday it had signed off on six pay deals covering nearly 1 million public sector employees, who will receive raises exceeding the 2% rate of inflation.
After a pay squeeze that cut the value of public sector wages in real terms, the government scrapped its across-the-board 1% salary cap in 2017.
The latest pay deals mean teachers, consultant doctors and dentists, police officers, military personnel and prison officers will receive pay increases in excess of 2%.
“In 2017 we ended the public sector pay cap and I’m pleased that we can build on this today by giving almost a million of our dedicated public servants an above-inflation salary increase,” Prime Minister Theresa May said in a statement.
The latest increase will only partially reverse the deep real-terms cuts in public sector pay over the last decade.
Official data show average public sector pay in inflation-adjusted terms remains around 4.5% below its peak in 2009.
(Reporting by Andy Bruce; Editing by William Schomberg)