Public sector pay not improving

PUBLIC sector workers were being made "scapegoats" for the financial crisis, union leaders claimed this week as new figures showed a gap emerging between their pay awards and those in private firms.

A study by Incomes Data Services (IDS) showed that in the three months to the end of April, median settlements in the private sector were worth 3 per cent, while for public sector workers it was zero. The latest study showed the effects of the government's policy of freezing the pay of public sector workers, said the report.

TUC general secretary Brendan Barber said: "While it's encouraging to see private sector pay awards increase, they are still running significantly below inflation, which reflects the UK's poor economic outlook. This also shows that real pain is being inflicted on public sector workers. With inflation running high, public sector pay freezes amount to a harsh real terms cut in wages.

"By forcing through pay cuts and seeking to increase pension contributions on top of heavy job losses, the Government is making public servants the scapegoat for a financial crisis they played no part in causing."

The research, based on almost 90 settlements, showed settlements have risen gently in private firms as the economy recovers, although remaining below the rate of inflation.