Ruth Mitchell

Public sector pay rising faster than private sector says think tank

Pay in the public sector in the UK has reportedly risen faster than in the private sector, a report for a think tank says.

The centre-right Policy Exchange said public sector wages were rising while many in companies were seeing “drastic cuts” in their standard of living.

It said the gap between equivalent workers in both sectors was more than 30% when based on hourly pay.

But the TUC said the report was aimed at creating divisions between public and private sector workers.

“The truth is that both are having a terrible time,” said TUC general secretary Brendan Barber.

“Public sector workers are facing a pay freeze, job losses and have already seen the value of their pensions cut by 25%.”

The report found that in Scotland, Wales, the North East and North West of England, a typical public sector worker can expect to be paid a fifth more than the typical private sector worker.

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