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Philip Hammond: Public servants are paid 'premium'

Philip Hammond: Public servants are paid 'premium'

Business
Philip Hammond said public sector workers receive a 10% "premium" over the private sector, as he defended the government's pay policy.The chancellor told Andrew Marr, the figure was a "simple fact" once pension entitlement is taken into account.He would not comment on reports that he said public servants were "overpaid", adding that ministers should not be discussing private cabinet meetings.John McDonnell said Labour would end the 1% cap on pubic sector pay rises.The shadow chancellor said his party had set aside £4bn on an annual basis, to bring pay in line with inflation.Reality Check: Is public sector pay higher?Pay rises for most public sector workers are set by independent pay review bodies, but have effectively been capped at 1% each year since 2013.Before that, there was a two-year
Philip Hammond says public sector pay has not changed

Philip Hammond says public sector pay has not changed

Business
Philip Hammond has insisted pay policy has not changed and the "right balance" must continue to be struck in terms of what is fair for workers and taxpayers.The chancellor, who is under pressure from colleagues to lift the 1% public pay cap, said he understood people were "weary" after seven years of austerity. But speaking in London, he rejected calls to "take the foot off the pedal".Government must "hold its nerve" in the face of calls for a "different path" of higher taxes and borrowing, he said.Mr Hammond is facing a growing chorus from within his own party for him to reconsider the 1% limit on increases in public sector salaries, which has been in place since 2012.Foreign Secretary Boris Johnson became the latest senior figure to express his support for a rethink on Monday, with sourc...
Pressure grows on No 10 to scrap public sector pay cap

Pressure grows on No 10 to scrap public sector pay cap

Business
Pay review bodies' recommendations for public sector jobs should be respected by ministers, Michael Gove has said.The environment secretary said that while ministers needed to reduce the deficit, they should also respect the "integrity" of the pay review process.His comments come as the prime minister and chancellor face increasing pressure from ministers and backbenchers to end the current 1% public sector pay cap.It follows demands within the party for an easing up of austerity.Speaking to the Sunday Times, Mr Gove said: "You've got to listen to the public sector pay review bodies."When they made recommendations on school teachers' pay, I think I always accepted them."My colleagues who deal with these pay review bodies would want to respect the integrity of that process." Cabinet splitPa...