Workers across the public sector - from teachers to police officers, NHS staff and more - are to be given a £2 billion pay rise, it has been reported.
The Times writes that the Treasury will unveil the biggest public sector pay rise for six years on Monday, before Theresa May's steps down as Prime Minister.
Two million workers will see their pay rise by more than inflation - as worries that public sector workers are losing out compared to those in the private sector.
Teachers and other school staff are set for a 2.75% rise, police officers 2.5%, soldiers a 2.9% increase, dentists and consultants will get 2.5% and senior civil servants 2%.
The Treasury is expected to say the money will have to come from existing budgets, apart from some extra funding for schools.
Jonathan Cribb, a senior research economist at the Institute for Fiscal Studies, told the Times: "These public sector pay rises are higher than last year's and considerably higher than the 1% for many years before that.
"It is the highest nominal pay increase since the coalition. But these increases are still slower than pay rises that are happening on average in the private sector.
"With the partial exception of schools, there seems to be no new money to fund these pay rises, meaning savings will have to be made elsewhere."
Public sector pay rises were capped at 1% after the Conservative-led coalition came to power in 2010, but the cap was scrapped last year.
The rises likely to be announced next week don't apply to other public sector staff, such as more junior civil servants and nurses, whose pay is dealt with separately, The Times added.
The new prime minister might be less inclined to help, however, with frontrunner Boris Johnson refusing to commit to a pay rise for public sector workers despite an apparent policy pledge by one of his key backers.
Health Secretary Matt Hancock had said the public sector would be "shown some love" if Johnson won, but the former foreign secretary made no spending pledge.
"Of course he's right, we are going to make sure that we properly fund our public services," Johnson said.
"It's very important when you're in charge of a great public service, whether it's the police or transport, you've got to make sure - or local government - you've got to make sure that you understand their cares and their needs."
