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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