NHS staff and key workers risking their lives in the coronavirus battle may face a two-year pay freeze as recession hits Britain.
A Treasury paper says axing public sector wage rises could save £6.5billion.
But Police Federation boss John Apter warned Chancellor Rishi Sunak it would be a “deep betrayal” of the Covid-19 heroes.
After weeks of being praised for their bravery and sacrifice in the coronavirus fight, NHS staff now find their reward could be a devastating assault on their pay.
Treasury documents reveal the Government is considering a public sector wage freeze for two years as Britain dives into the worst recession for 300 years due to the pandemic.
Furious unions accused ministers of hypocrisy and betrayal after Boris Johnson and Chancellor Rishi Sunak joined the weekly applause for key workers risking their lives to keep people safe and the country running.
It comes after the PM had vowed austerity would not be used to recover from the economic nightmare.
But the economy shrank by 2% in the first quarter of this year and Mr Sunak warned the pandemic could trigger a £337billion Budget deficit this year, compared to the predicted £55billion, leading to a “significant recession”.
And the Treasury paper showed a pay freeze could save £6.5billion by 2023-24.
The elderly could be hit as the PM’s press secretary refused to rule out ditching the triple lock on pensions.
Police Federation chairman John Apter urged the Government not to “financially punish public sector workers”, who have suffered many deaths on the coronavirus front line.
As the number of fatalities yesterday rose by 494 to 33,186, he said: “Rishi Sunak and thousands of others have clapped for our key workers every Thursday.
"To even consider freezing their pay to help the financial recovery would be morally bankrupt and would be a deep and damaging betrayal.”
SNP Treasury spokeswoman Alison Thewliss MP added: “It would be utter hypocrisy to applaud our health and social care staff during this crisis then freeze their pay afterwards.”
Royal College of Nursing general secretary Dame Donna Kinnair said: “This proposal is the exact opposite of what’s expected and deserved and, if pursued, will outrage professionals and public alike.
"We will make sure no government forgets the professionalism demonstrated by nursing staff during this pandemic and before it.”
Unison general secretary Dave Prentis added: “It’s appalling the Government is even contemplating freezing public sector pay.
“The public will be horrified by these cheap tactics. NHS, care, council, police and school staff have kept services running, saving lives, caring for the vulnerable and ensuring communities are safe.
"Public service workers deserve proper recognition for these efforts.
“Anything less would be a slap in the face to those we applaud each week.”
Prospect union general secretary Mike Clancy said: “Responding to this economic shock with more austerity and public pay cuts would be like throwing water on a chip pan fire.”
Fire Brigades Union general secretary Matt Wrack added: “The Government is talking about dishing out medals to key workers in one breath whilst planning pay cuts for them in another.”
Labour confirmed it would not back a public sector pay freeze.
Shadow Chancellor Anneliese Dodds said: “The proposals would be devastating for our public services, which were under strain even before this crisis.
"Key workers we clap every Thursday would continue to struggle on low pay.”
Figures showed that economic activity has plummeted 5.8% in March, as first-quarter GDP suffered its biggest fall since the 2008 financial crisis.
The National Institute of Economic and Social Research predicted growth would dive by 25% to 30% in the second quarter, and the UK is tipped to suffer its worst recession since the Great Frost in 1709.
Mr Sunak said: “We’ve seen one here with only a few days of impact from the virus, so it is now very likely that the UK economy will face a significant recession this year.”
Bank of England governor Andrew Bailey said of the economy shrinking: “It tends to confirm that we’ve got a very sharp move into recession, and it was quite sudden.”
The PM’s press secretary failed to quell fears of an assault on public salaries.
He said: “We acknowledge those on the front line are doing an incredible job and we are determined to support them.
"Public sector pay decisions are made through the usual annual process and recommendations from the review bodies will be considered before pay awards are announced this summer.
“We obviously recognise the work of the frontline staff in the crisis and we’re not going to forget that after we’re through this crisis.”
The Treasury assessment, dated May 5, warned plugging a £337billion Budget hole through tax rises would be “very challenging without breaking the tax lock”.
Tories pledged not to raise income tax, VAT or National Insurance at December’s general election.
They also vowed to keep the triple lock on pensions, which means they rise by at least 2.5%, the inflation rate or average earnings growth, whichever is largest.
Asked if the promise still stands, the PM’s press secretary said: “We’re facing a time of unprecedented economic uncertainty.
"It’s too early to speculate about any future decisions.”
Mr Johnson last month promised not to unleash fresh austerity on beleaguered Brits, after 10 years of savage Tory cuts to public services.
He insisted back then: “It’ll certainly not be part of our approach."
