Public sector workers who had previously benefitted from automatic increases in their wages (known as progression pay) are to see their pay frozen.
In a move set to further outrage members of the Public and Commercial Services (PCS) Union still further, Chancellor George Osborne MP said the move is part of his ‘responsible fiscal policy’.
He explained: “We will seek substantial savings in progression pay. It is difficult to justify when some in the public sector and those in the private sector have seen pay frozen or even cut. We need to put jobs first.”
Osborne also said that government budgets will also have to be slashed by more than the sums previously announced.
He said: “Departmental budgets have yet to be set for 2015/16. This will be done on 26 June. I said we would require 10 billion of savings from that spending round. We will instead be seeking 11.5 billion of savings. We need to make these difficult decisions so that Britain can live within its means.
“Budgets must be more closely aligned to what they actually spend. There will be a 1% reduction for most departments.”
Osborne added that the schools and the health budgets will remain protected and local government and police authorities will also not be affected for 2013 and 2014.
0.7% of national income has been ring-fenced for international development.