Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the savings that will accrue to the public purse from capping public sector pay increases at 1 per cent in each of (a) 2016-17, (b) 2017-18, (c) 2018-19, (d) 2019-20 and (e) 2020-21.
At Summer Budget the government reiterated the need to continue to take tough decisions on public sector pay, in order to improve the public finances while protecting the quality of public services and jobs.
Therefore the government announced that it will fund public sector workforces for an average pay award of 1% for 4 years from 2016-17 onwards. This will save approximately £5 billion by 2019-20.