Many public sector workers already face low pay increases or pay freezes in 2010. Now, in an interview with the Sunday Times, Chancellor Alistair Darling has indicated that public sector pay will be subject to "restructuring" (external website), which could result in pay cuts for some jobs.
According to Darling:
We need to restructure the way people get paid. In both the public and private sector, what was being paid has sometimes lost touch with what someone actually does. And that's not only unfair; it's also grossly inefficient.
The Sunday Times also reports (external website) that "Darling has ordered a wider study of public pay, by the Senior Salaries Review Body, which will report by the [2010] Budget."
Many commentators believe that we can expect the 2010 Budget in March, with the general election set to follow in May.
Public sector pay awards are currently outperforming the private sector. A breakdown by sector of latest pay trends data from IRS reveals a stark divide (subscription required): the private sector median was 1% for the 2009 calendar year, one percentage point below the headline public sector pay award (2%).
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