Government departments have recommended a 2.8% pay rise for millions of public sector workers, including teachers, NHS staff, and senior civil servants, for the year 2025-26. The proposed increase has sparked a strong response from unions, with some threatening industrial action if the offer is implemented.
The British Medical Association (BMA) warned of a “very real risk” of further strikes if what it describes as “pay erosion” is not addressed. Unison’s Helga Pile called the recommendation a “bitter pill” for workers, particularly as inflation is expected to average 2.6% next year. The proposal will now be reviewed by the relevant public sector pay review bodies.
Justice Secretary Shabana Mahmood stressed that the government’s proposal was only “the start of that process,” urging unions to recognize the “extremely difficult” financial situation the Labour government inherited from the previous Conservative administration. Under the current plan, public sector departments will need to fund any future pay increases from their existing budgets, without additional money from the government if the recommendations exceed what is affordable. Officials will be tasked with finding savings or improving productivity to cover the additional costs.
Prime Minister Rishi Sunak’s spokesperson added that pay increases must be fair to both workers and taxpayers. “For pay awards to go beyond inflation, they will have to be met by productivity improvements,” the spokesperson said.
The BMA criticized the proposed pay rise as inadequate, arguing it reflects a lack of understanding of the issues that led to years of industrial action. The Royal College of Nursing’s Prof. Nicola Ranger described the offer as “deeply offensive,” particularly to nursing staff who she said are being told their work is worth “as little as £2 extra a day, less than the price of a coffee.”
Helga Pile of Unison warned that the proposed pay rise could lead to NHS staff leaving the profession, further damaging morale ahead of a “tough winter.”
The Department for Education stated that the 2.8% pay rise for teachers would help “maintain the competitiveness of teachers’ pay,” despite the challenging financial situation. However, the National Education Union (NEU) argued that the proposal “falls well short” of what is needed to address the real-term pay cuts teachers have experienced over the past decade. NEU General Secretary Daniel Kebede highlighted that teacher pay has decreased by over 20% since 2010, diminishing the profession’s competitive edge against other graduate careers.
Eight pay review bodies, which make recommendations for public sector pay, will now consider the government’s proposal. While these bodies can suggest pay awards, ministers have the final say and are not bound to follow their recommendations. Unions have long argued that these bodies are constrained by government-imposed funding limits, making it difficult for them to recommend pay increases that adequately address workers’ needs.
