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| Millions of public sector workers lose automatic annual pay rises | Millions of public sector workers lose automatic annual pay rises |
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| Millions of public sector workers will lose automatic annual pay rises and see any additional pay hikes held at about 1% as part of a cuts package announced by George Osborne on Wednesday. | Millions of public sector workers will lose automatic annual pay rises and see any additional pay hikes held at about 1% as part of a cuts package announced by George Osborne on Wednesday. |
| The news provoked a furious response from unions, who warned of future critical staff shortages in nursing, education and social services. | The news provoked a furious response from unions, who warned of future critical staff shortages in nursing, education and social services. |
| Two unions representing health workers and civil servants demanded clarification on whether this would nullify existing "pay progression deals" negotiated with the coalition government. | Two unions representing health workers and civil servants demanded clarification on whether this would nullify existing "pay progression deals" negotiated with the coalition government. |
| Osborne set out spending cuts for 2015/16 in response to slower than expected economic growth. He told the Commons automatic pay deals for civil servants would end by April 2016 in favour of performance-related rises. | Osborne set out spending cuts for 2015/16 in response to slower than expected economic growth. He told the Commons automatic pay deals for civil servants would end by April 2016 in favour of performance-related rises. |
| "Progression pay can at best be described as antiquated; at worst, it's deeply unfair to other parts of the public sector who don't get it and to the private sector who have to pay for it," he said. "We are working to remove automatic pay rises simply for time served in our schools, NHS, prisons and police." The armed forces will be excluded from the reforms, he added. | "Progression pay can at best be described as antiquated; at worst, it's deeply unfair to other parts of the public sector who don't get it and to the private sector who have to pay for it," he said. "We are working to remove automatic pay rises simply for time served in our schools, NHS, prisons and police." The armed forces will be excluded from the reforms, he added. |
| Osborne said public sector pay rises would be limited to an average of up to 1% for 2015-16, saving at least £1.3bn. According to the Treasury, some public employees have enjoyed automatic pay increases of up to 7%. | Osborne said public sector pay rises would be limited to an average of up to 1% for 2015-16, saving at least £1.3bn. According to the Treasury, some public employees have enjoyed automatic pay increases of up to 7%. |
| Union leaders said the announcement had caused confusion over what this would mean for their members' current employment agreements. | Union leaders said the announcement had caused confusion over what this would mean for their members' current employment agreements. |
| Peter Carter, general secretary of the Royal College of Nursing, said he needed to know if this meant the government would rip up a deal negotiated for all NHS staff which came into force in April. "Changes which the RCN and other unions negotiated with the Government mean that NHS pay progression is already conditional on employees demonstrating they have the right skills, knowledge and performance," he said. | Peter Carter, general secretary of the Royal College of Nursing, said he needed to know if this meant the government would rip up a deal negotiated for all NHS staff which came into force in April. "Changes which the RCN and other unions negotiated with the Government mean that NHS pay progression is already conditional on employees demonstrating they have the right skills, knowledge and performance," he said. |
| Leslie Manasseh, the deputy general secretary of the civil service union Prospect, said the government has already scrapped progression pay for most civil servants, unless it is part of an employee's contractual rights. "Is he now planning to unpick these contracts? He needs to come clean," he said. | Leslie Manasseh, the deputy general secretary of the civil service union Prospect, said the government has already scrapped progression pay for most civil servants, unless it is part of an employee's contractual rights. "Is he now planning to unpick these contracts? He needs to come clean," he said. |
| Some unions said the latest "onslaught" on public sector pay would lead to critical shortages. | Some unions said the latest "onslaught" on public sector pay would lead to critical shortages. |
| Dave Penman, the head of FDA, the senior civil service union, said: "The widening pay gap between the civil service and private sector is already making it increasingly difficult to recruit and retain the best people," he said. | Dave Penman, the head of FDA, the senior civil service union, said: "The widening pay gap between the civil service and private sector is already making it increasingly difficult to recruit and retain the best people," he said. |
| Dave Prentis of Unison accused Osborne of making local government a "whipping boy" of the Conservative party, adding: "How can he squeeze more out of council workers when three quarters now earn less than £21,000 as a result of the government's three-year pay freeze?" | Dave Prentis of Unison accused Osborne of making local government a "whipping boy" of the Conservative party, adding: "How can he squeeze more out of council workers when three quarters now earn less than £21,000 as a result of the government's three-year pay freeze?" |
| Brian Strutton, national officer of the GMB, said: "This is just another unpleasant dig at public sector workers who have already been made scapegoats for problems they had nothing to do with." | Brian Strutton, national officer of the GMB, said: "This is just another unpleasant dig at public sector workers who have already been made scapegoats for problems they had nothing to do with." |
| Ministers have already announced plans for a major overhaul of teachers' pay. Under the proposals, which are due to begin coming into effect from this autumn, pay will be linked to performance in the classroom, with schools setting salaries, rather than following a national framework. | Ministers have already announced plans for a major overhaul of teachers' pay. Under the proposals, which are due to begin coming into effect from this autumn, pay will be linked to performance in the classroom, with schools setting salaries, rather than following a national framework. |
| The Treasury did not respond to requests for a comment on what Osborne's announcement would mean for existing contracts. | The Treasury did not respond to requests for a comment on what Osborne's announcement would mean for existing contracts. |
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