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Rishi Sunak’s 2021 Budget will include an end to the year-long public sector wage freeze imposed during the coronavirus pandemic, the Treasury has said.
The chancellor said in a statement ahead of his Commons speech on Wednesday that “with the economy firmly back on track, it's right that nurses, teachers and all the other public sector workers who played their part during the pandemic see their wages rise”.
However, unions warned any pay rises must be above the rate of inflation, which is soaring. On Tuesday morning Paul Scully, the business minister, was unable to confirm this would be the case, saying any rises would be based on the recommendations of pay review bodies.
Meanwhile, the government has also announced a rise in the minimum wage for workers aged 23 or older. Some 2 million people on the so-called “national living wage” will see their pay increase from £8.91 an hour to £9.50 from 1 April.
The minimum pay for 21- and 22-year-olds is also set to rise, as well as for apprentices.