Pay gulf widens between public and private sectors under Starmer

Data shared by the Resolution Foundation indicate that public sector monthly pay recently exceeded £2,640, compared to around £2,500 in the private sector. This shift has been largely influenced by generous settlement deals for key groups, with junior doctors receiving a 22% rise over two years and train staff securing a 14% deal alongside a halt to certain workplace reforms. Such settlements underline the widening disparity between public and private sector salaries.

Mike Brewer, interim head of the Resolution Foundation, remarked, 'Private sector pay has risen gradually over the past year, but the real change in the public sector happened in October, when NHS pay settlements took effect.' This highlights that public sector wage increases are significantly outpacing private sector growth, indicating a shift in the labor market dynamics that could have broader economic implications.

Read at Business Matters