Public Sector: Pay
(asked on 7th March 2025) - View Source
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to help mitigate the impact of public sector pay settlements for 2025 on inflation.
This question was answered on 14th March 2025
For 2025-26, public sector pay awards for most frontline sector workforces are subject to the ongoing Pay Review Body (PRB) process. The majority of PRBs are required, per their terms of reference, to consider the government’s inflation target when forming their recommendations. The Chancellor has also been clear that departmental settlements for 2025-26 and beyond will need to fund these public sector pay awards, given that additional borrowing to fund pay awards could increase inflationary pressures.
For 2025-26, public sector pay awards for most frontline sector workforces are subject to the ongoing Pay Review Body (PRB) process. The majority of PRBs are required, per their terms of reference, to consider the government’s inflation target when forming their recommendations. The Chancellor has also been clear that departmental settlements for 2025-26 and beyond will need to fund these public sector pay awards, given that additional borrowing to fund pay awards could increase inflationary pressures.