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‘Three years of falling pay ahead’

16 March, 2017

‘Three years of falling pay ahead’

New analysis reveals that public sector pay is falling and will continue to do so for the next three years.

This is due to a combination of rising inflation and pay restraint, according to the publication from the Resolution Foundation, funded by the Nuffield Foundation.

It finds that, although real pay performed well in 2015 and 2016, this was largely due to prices not rising at a time of public sector pay restraint. 

However, with inflation now increasing, the analysis shows that real public sector pay is likely to have started falling in the three months to February. 

Private sector pay continued to grow over the same period.

Jon Skewes, RCM director for policy, employment relations and communications, said: ‘This is further proof that we are short-changing our hard working midwives and other NHS staff who have already seen a substantial fall in the value of their pay, despite a rising cost of living.

'We call again on the government to lift the 1% cap on public sector pay, so that the dedication, commitment and skill of our midwives and other NHS staff is recognised and fairly rewarded.'
 
In October last year, the RCM calculated that if an average midwife had seen their salary rise with inflation since 2010, their salary would be over £6000 higher now. 

This is expected to increase to over £9000 if public sector pay restraint continues to 2020 as the government intends.
 
For more on the analysis by the Resolution Foundation, click here.

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