Unions have warned of a “hammer blow to morale” in the public sector after Downing Street said ministers should consider the risk of fueling inflation when deciding on wage awards. this year.
A reading of the cabinet meeting on Tuesday morning revealed that ministers “held a discussion on public sector pay”, which would affect government officials, nurses, police, teachers and NHS workers fighting during the cost of living crisis.
It came when the Department of the Environment, Food and Rural Affairs (Defra) became the first Whitehall department to announce a freeze on hiring, with the threat of cuts in more than 90,000 public sector jobs.
According to Boris Johnson’s official spokesman, at the cabinet meeting “the prime minister said that the public is understandably concerned about the global pressures of the cost of living and that the government will continue to support those most in need.”
The spokesman added: “The government is already committed to increasing public sector spending and is awaiting decisions from public sector review bodies. However, ministers made it clear that the risk of higher inflation should be part of the consideration when deciding on this year’s salary awards. “
Unions reacted angrily to the suggestion that public sector workers should take responsibility for curbing inflation.
TUC Deputy Secretary-General Paul Nowak said: “These statements are nonsense. Making sure people can afford to pay their bills and put food on the table will not increase inflation. Inflation is being driven by rising energy costs, not payment claims. “
He added: “Key public sector workers have endured a decade of wage cuts and freezes. At a time when staff shortages are paralyzing front-line services, this would be a blow to workers’ morale. “.
The limit on public sector wage awards, imposed by Chancellor Rishi Sunak during the pandemic, was only lifted last October, with effect from April.
The main civil service union, the Public and Commercial Services (PCS), on Tuesday supported the strike by the government’s plans to set wage increases at only 2%.
The vote, which took place at the union’s annual conference in Brighton, demonstrates the scale of anger in Whitehall and beyond at the government’s offer.
PCS Secretary-General Mark Serwotka said that throughout the pandemic, officials had “worked hard to provide critical front-line services.”
He added: “Unlike the Prime Minister, cheese did not distract us. We kept the country afloat, providing universal credit to almost 10 million people, permission to almost 6 million people, keeping our borders open, keeping the roads safe “.
The dispute over the salary restriction arose when it emerged that Defra had frozen the hiring, initially for several months.
An “sensitive official” briefing leaked to the Guardian revealed that an effective hiring freeze would take effect on Wednesday for all essential roles in the department.
Senior officials who drafted the document may admit dismissals “as a last resort.”
They added: “Given what we will have to do over the next few years, we must recognize that after this three-month period, our approach to recruitment will not be the same again.”
Only certain functions approved by the director general or the director general of the department in their independent bodies will be allowed. And appointments made through career entry programs, including apprenticeships and skills support for caregivers, will only be allowed for “critical” jobs.
Garry Graham, deputy general secretary of the Prospect union, said it was “the first of many recruitment freezes detrimental to the civil service” and that Defra was “already struggling to meet his obligations” to deal with the climate crisis. and supporting farmers and boosting trade after Brexit.
He warned that officials would face “higher workloads and more pressure” and called on Johnson to “rethink these disastrous plans and adequately equip our essential public services.” Defra was contacted for comment.
A government spokesman said they were “incredibly grateful to the public administration for the excellent work they do in providing services to the public,” but that given the cost of living crisis, “the public expects with the right of your government to lead by example and function as efficiently as possible. “
Ministers have been asked to model job cuts of up to 40% in their departments, as part of a cost-cutting campaign led by Jacob Rees-Mogg.
When asked by Johnson’s spokesman whether public sector workers should accept wage increases below inflation in the coming months, he said: “Obviously, I can’t predict exactly where inflation will go. But with inflation so high, represents a major challenge for things like the public sector wage. “
Independent salary review bodies make recommendations to ministers on how to reward workers in various parts of the public sector, including the NHS and education.
The Department for Health and Welfare provided evidence to the NHS payroll body earlier this year, suggesting a 3% increase for nurses. With inflation at 9%, this would represent a significant cut in real terms.