Public sector workers, such as nurses, teachers and doctors, have received salary increases.
They have received increases of between 4.5% and 9.3%, but unions say most wage increases are not enough, as they are less than half the current level of RPI inflation.
Because those in the public sector receive taxpayers’ money, the amount paid to them is determined by their general employer: the government.
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However, there is a long process to determine what their salary should be before ministers ever see a number.
How are public sector wage increases determined?
Payment review bodies
Independent salary review bodies have a comprehensive role to play in informing the government’s final decision on how to pay around 45% of the public sector, including teachers, nurses, doctors, police and members of the armed forces.
They are made up of experts in their field and their appointments are made on merit, not political affiliation.
The process begins when the Secretary of State for the relevant area requests recommendations on the payment of employees to the salary review bodies.
They will establish a timetable and parameters such as asking agencies to consider issues such as affordability, retention, hiring and the state of the entire labor market.
Departmental salary spending is limited by the amount of funding they receive from the Treasury.
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Image: NHS doctors and nurses will be included in pay changes
Next, various sources, such as unions and their members, as well as employers, present evidence to pay review bodies, which often visit industry staff to determine concerns and opinions.
The government then also presents its formal offer of payment at this stage for all levels of staff affected.
After receiving all the evidence from the relevant groups, the salary review bodies recommend what the salary level should be.
What happens after making the recommendations?
The government chooses when to respond and publish the reports prepared by the salary review bodies.
Secretaries of state usually respond to recommendations by issuing a written ministerial statement to parliament.
In general, the recommendations are accepted by the secretaries of state, but there have been times when the recommendations have been overturned.
Sectors may disagree with wage changes and may attack the decision, but the government has the final say.
The latest pay rises are likely to be implemented in the fall, but could backfire in early April, when the fiscal year began.
Are there salary review bodies for all public sector jobs?
No.
Officials who do not belong to the senior civil service have their remuneration set by individual departments, in accordance with the guidelines issued by the Office of the Council of Ministers and the Treasury.
Local government staff (not teachers) have their pay determined by their employers and unions.
Decentralized governments (Northern Ireland, Scotland and Wales) set their own wage policy for public bodies under their control.