Thomas Bridge 11 March 2014

Public sector pay sees biggest shrink on 2010, figures suggest

Public sector staff have seen the largest pay squeeze since 2010, the wage gap having narrowed between their private sector counterparts.

While average public sector pay is now between 2.2% and 3.1% higher than the private sector once job and worker characteristics are accounted for, figures from the Office for National Statistics suggest this gap has shrunk since the Coalition Government came to power.

Reports suggest the ‘downward trend’ in public sector pay is likely a reflection of earnings freezes established in 2010.

The public sector generally consists of large organisations – which traditionally tend to earn more than small organisations – while the private sector consists of a more even split of sizes.

However, private sector workers in London currently earn on average 8% more than their public counterparts.

Among the lowest 5% of earners in each sector, figures show public sector workers earned 20% more than private sector staff. Conversely, when looking at the top 5% of earners, public sector workers earned 24% less than their private counterparts.

Responding to the figures, Trades Union Congress general secretary, Frances O’Grady, said: ‘Years of freezes, real terms pay cuts and rounds of redundancies have left public servants facing a sharp squeeze in their living standards.

‘Not only do public sector workers earn less than equivalent staff in the private sector, they also face greater job insecurity as hundreds of thousands of posts are set to go in the coming years.’

General Secretary of Unison, Dave Prentis, said: ‘The pay freeze and squeeze has hit public service workers hard, leaving many struggling to get by. The pay cap, coupled with inflation means that for many workers the value of their pay has fallen by 16% since 2010 – a massive pay cut.’

Tackling the ecological skills gap  image

Tackling the ecological skills gap

Catherine Spitzer, chief executive of Environment Bank, explains how private investment can help councils that are struggling to attract skilled ecologists.
SIGN UP
For your free daily news bulletin
Highways jobs

Head of Climate Adaptation & Mitigation

Essex County Council
£72422.0000 - £85202.0000 per annum + plus benefits
This is a hybrid-working role, with attendance in the Chelmsford office expected to be approximately 2-3 days per month, depending on business need.Pl England, Essex, Chelmsford
Recuriter: Essex County Council

Libraries and Heritage Service Support Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£34292 - £40344
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Strategy, Workforce and Transformation Manager

Wakefield Council
£58,103.00, Grade 14, 37 hours, Permanent
Our aim is to have a confident, skilled and productive workforce Wakefield, West Yorkshire
Recuriter: Wakefield Council

Advanced Social Work Practitioner

Wakefield Council
£49,764.00 - £52,805.00, Grade 12, 37 hours, Permanent
Remarkable Social Workers work for Outstanding Leaders in Wakefield Wakefield, West Yorkshire
Recuriter: Wakefield Council

Specialist Learning Support Assistant

Wakefield Council
£18,708.55 - £19,005.14, Grade 4, 32.5 hours, Term time, Permanent
Would you like to make a difference to the education of visually impaired children? Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.