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Public Sector: Pay

Asked by Charlie DewhirstConservativeTreasuryTabled Answered 11 October 2024UIN 5745

The question

To ask the Chancellor of the Exchequer, pursuant to the Answer of 6 September 2024, to Question 2627, on Public Sector: Pay, what estimate (a) her Department and (b) the Office for Budget Responsibility have made of the limited increase in (i) inflation and (b) wage expectations from the public sector pay rises.

Answered by Darren Jones

HM Treasury have assessed the impact of the public sector pay rises announced at the Chancellor’s July Statement on inflation and wage expectations to be negligible given they were broadly in line with private sector wage growth, at the time of the announcement.

The OBR will take into account any impact from all government policy announcements on the UK’s economic and fiscal outlook in their next forecast. This will be available in their Economic and Fiscal Outlook report which will be published on the 30th October, alongside the Autumn Budget.

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