Around five million public sector workers are set to be exposed to a maximum wage as Rishi Sunak seeks to rebuild public finances, according to reports.
The advisor is expected to use Next week’s spending review To limit the rise in wages in the public sector at or below inflation.
Only NHS physicians and nurses will be exempt from the maximum estimate of their work during Corona Virus Pandemic, The Times said.
However, teachers, police and members of the armed forces as well as NHS managers will be affected.
Public sector unions are likely to face the move angrily, as they say their members have borne the brunt of the conservative austerity cuts in the wake of the global financial crisis.
The chancellor is already under fire over widespread reports that he is preparing to abandon the obligation to spend 0.7% of national income on foreign aid while looking for savings.
When launching the spending review in July, Sunak warned of the need for “restraint” in future public sector wage adjustments.
He said that the awards awarded in the review period should take into account the “broader economic context” and stressed that while public sector wages are rising, private sector wages have declined during the coronavirus pandemic.
This argument was supported by a new report from the Center for Policy Studies (CPS) that said private sector workers suffered far more from the economic impact of the disease.
She said a three-year wage freeze in the public sector could save up to 23 billion pounds, helping close the fiscal gap the pandemic has opened.
If the NHS is eliminated, the CPS said it could still save £ 15.3 billion over the three years.
Director Robert Colville said: “Aside from healthcare workers, it is difficult to justify generous wage increases in the public sector when private sector wages are already declining.
“At the same time, there is a need to control public spending and reduce the structural deficit that the epidemic is likely to have opened.”
The united trade union said it appeared the CPS was using “an outside party” before Mr. Sonak’s statement next week.
“In the spring, the prime minister paid tribute to the NHS staff for saving his life,” Assistant Secretary-General Gil Qartail said.
“Now, in the fall, he needs to make sure his advisor turns those warm words into tough money for those who ensure the efficient operation of the NHS, schools and colleges, and the myriad of services that local councils provide daily.”
Union General Secretary Dave Prentice said setting a new wage cap would be a “heavy blow” to NHS staff rather than on the frontline.
“The principal actors of all public services remain at the center of the battle against Coronavirus disease,” He said.
“The government must do what is right next week and announce the more wages all employees have received.”