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Market-facing pay in the public sector: the role of the pay review bodies

Author: Rachel Sharp

This article looks at the work the independent review bodies have been asked by the Chancellor to carry out into how public-sector pay might be made more responsive to local labour markets, and examines the issues involved in moving to "market-facing" pay in the public sector.

Key points

  • The Government has expressed the view that public-sector pay does not reflect local labour-market conditions, which can adversely affect private-sector businesses that have to compete with public-sector wages.