Rachel Reeves is under pressure to give millions of public sector workers including and staff a higher than planned pay rise this year.
The independent pay review body has reportedly recommended to ministers that over half a million teachers should be given a boost of around 4%. It also suggests over 1.3million NHS workers should see their pay cheques increased by closer to 3%, according to
It comes after the Chancellor proposed a last year - leading one union to describe the offer as an "insult". The move raised fears the country could descend into strike action again and in recent weeks teachers' over the "unacceptable" pay offer.
Unions have also warned the government any pay hikes must be fully-funded rather than being raided from already stretched budgets across the public sector.
Speaking on Monday, the Health Minister Stephen Kinnock told Sky News: "We've received the recommendation of the pay review body and we will give that very careful consideration.This government is about putting more money in the pockets of working people. We sorted out the junior doctors' strike last year. As a result we got doctors off the picket-line and on the frontline and that has led to waiting lists now falling for six months."
He added: "But we do also have to ensure we are balancing the books and we've got to work in terms of public sector pay within fiscal constraints. I would of course also urge our colleagues in the trade union movement to engage constructively with us and recognise the reality of the financial position."
But an NHS source told the Times: “This will go down really badly. These are people who haven’t had a lot given to them in recent years and we know that nurses are gingering up for some kind of industrial action, unions are very upset and it is going to be unrest all over again.”
A Treasury spokesman said: “As is part of the usual process we are considering recommendations from the independent Pay Review Bodies and will respond in due course. Last year this government accepted the independent Pay Review Bodies’ recommendations in full, providing the first meaningful real terms pay rises for years.”
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