Millions of UK public sector workers, including teachers and doctors, will get pay rises of 6% or more after Rishi Sunak decided to accept the recommendations of independent pay review bodies.
The bodies had suggested pay rises of between five per cent and 6.5 per cent for 2023-24, at a potential cost of £5bn.
The increases in pay that have been announced are as follows:
- Police 7%
- NHS - 6%
- Junior doctors 6%
- Prison officers 7%
- Armed Forces - 5%
- Teachers - 6.5%
The new pay recommendations will “allow teachers and school leaders to call off strike action and resume normal relations with government,” teachers unions have said in a joint statement with the Government.
Prime Minister Rishi Sunak and Education Secretary Gillian Keegan issued a joint statement on pay alongside the general secretaries of the four education unions - Mary Bousted, Kevin Courtney, Geoff Barton, Paul Whiteman and Patrick Roach - as well as the general secretary elect of the NEU, Daniel Kebede.
"This is the largest ever recommendation from the School Teachers' Review Body (STRB)," it said.
"A 6.5 per cent increase for teachers and school leaders recognises the vital role that teachers play in our country and ensures that teaching will continue to be an attractive profession. The Government has accepted the STRB's recommendation and has agreed to bring forward wider reforms to reduce teacher and leader workload in partnership with all four unions.
"Importantly, the Government's offer is properly funded for schools. The Government has committed that all schools will receive additional funding above what was proposed in March, building on the additional £2 billion given to schools in the Autumn Statement.
"The Government will also provide a hardship fund of up to £40 million to support those schools facing the greatest financial challenges.
"ASCL, NAHT, NASUWT and NEU will now put this deal to members, with a recommendation to accept the STRB recommendation. This deal will allow teachers and school leaders to call off strike action and resume normal relations with Government."
But Mr Sunak also issued a warning to trade unions and workers still involved in strikes and industrial action.
He told a Downing Street press conference that the new pay offers were "final".
"Now there's a clear message here. There are always choices. Budgets are not infinite. When some ask for higher pay, that will always create pressures elsewhere," he said.
"It is now clear momentum across our public services is shifting. The vast majority who just want to get on with their life's calling of serving others are now returning to work.
"Today's offer is final. There will be no more talks on pay. We will not negotiate again on this year's settlements and no amount of strikes will change our decision."
He said the accepted recommendations were a "fair deal for the British taxpayer".
Giving more details in the Commons, Treasury minister John Glen said: "New teachers will start on at least £30,000, the lowest paid armed forces will see a pay rise of over £2,000 and the starting salary of a junior doctor will rise by more than £3,000, and that comes alongside our agenda for change deal which delivered a five per cent pay rise along with one-off awards worth more than £3,600 for the average nurse or more than £3,700 for the average ambulance worker.
"Specifically that means policing will receive a seven per cent headline uplift. NHS consults, SAS doctors, salaried dentists and salaried GPs will receive uplifts of six per cent this year, junior doctors will also receive a six per cent uplift as well as an additional consolidated £1,250 increase.
"Prison officers in the operational bands will receive a pay increase of seven per cent, with larger increases for support grades. Armed forces will receive a five per cent uplift, with an additional consolidated £1,000 increase.
"And our 6.5 per cent pay award for teachers will be fully funded, with the Government providing £525 million of additional funding for schools in 23/24 and a further £900 million in 24/25. In order to achieve this we are reprioritising within the Department for Education's existing budget to deliver this additional funding to schools while protecting frontline services.
"The action we have taken today is the most responsible way forward, striking a balance between the demands of our public sector workers and the needs of our country and economy."
He added: "We must deliver on the Prime Minister's pledge to cut inflation. So we will continue to chart the course of sound money to the benefit of all, whilst making fair pay awards, awards that do not fuel inflation, to our public sector workers."
Explaining further, he stressed: "We will cut back on civil service recruitment in the Ministry of Defence until March 2025, helping fund the pay rise for our armed forces.
"We plan to increase the rates of the immigration health surcharge, which have been frozen for the last three years... to ensure that it covers the full healthcare costs of those who actually pay it."
He said the main rate would increase to £1,035, and the discounted rate for students and under-18s will increase to £776, which he said would "help fund the pay rise for doctors".
He said fees will be increased across a range of immigration and nationality routes, including an increase in the cost of work and visit visas by 15%, and increasing the cost of study visas, certificates of sponsorship, wider entry clearance, leave-to-remain and priority visas among others by at least 20%.
Among other changes, he said this would help cover more of the cost of the migration and borders system, allowing the Home Secretary Suella Braverman, he argued, to divert more funding to police forces to help fund their pay rise.
Mr Sunak later confirmed the public sector pay rises will not be funded by more Government borrowing.
He told a press conference in Downing Street: "Those (pay review) bodies have considered a range of evidence about where to set this year's pay. And their recommendations to Government are for public sector pay rises to go up by a significant amount.
"Now clearly, this will cost all of you as taxpayers more than we had budgeted for.
"That's why the decision has been difficult, and why it has taken time to decide the right course of action.
"I can confirm today that we are accepting the headline recommendations of the pay review bodies in full, but we will not fund them by borrowing more or increasing your taxes."
