Public sector pay: What is happening in Wales?
- Published
Prime Minister Rishi Sunak has announced pay rises for millions of public sector workers.
The UK government has accepted recommendations made by pay review bodies which will see pay increases for prison workers, those in the armed forces and police.
But the way the UK works means that some of the changes do not apply in Wales, with Cardiff ministers making their own decisions.
The rises for doctors and teachers announced on Thursday will apply in England, and not here.
Teachers pay in Wales has already been subject to negotiation for this year, and a Welsh government source said the deal offered in England is similar to a deal already struck.
Because no additional money has been raised by the UK government for the changes, the pay rises will not lead to extra cash for the Welsh government to pay for their own increases.
What will not apply to Wales?
In the NHS consultants, dentists, junior doctors and GPs in England will be offered 6%. Teachers and junior doctors are toe offered 6.5% and 6% respectively.
The UK government had accepted the findings of the pay review bodies - a group of experts that make recommendations for ministers.
The Welsh government shares the same pay review body for doctors and dentists with other UK nations, but it will make its own decision on what the rise actually is.
Pay for teachers is entirely devolved - with a Welsh pay review body making its own recommendations.
A previous recommendation for 2023/24 was overridden when the Welsh government agreed a 5% increase in pay in a deal which saw the NEU call off strike action.
It was not enough for the NAHT headteachers union, which has been conducting industrial action short of a strike since February.
A source in the Welsh government said the lack of extra funding from the UK government for pay was disappointing.
They added that the education pay offer was similar to Wales' two year deal, because the rise in 22/23 was larger than in England.
That year teachers saw a 6.5% increase in pay, as well as a one-off lump sum payment of 1.5%.
The question is how unions in Wales will react, now pay offers have been made in England.
Will the Welsh government get extra cash from the English pay rises?
Generally when more money is spent on England-only services, Wales gets some extra cash called a consequential.
This is not expected through Thursday's pay rises, because the UK government said there will not be extra spending to fund the awards.
That will have a knock-on effect for the Welsh government which cannot raise huge amounts of money through tax and gets most of its budget from a UK government grant.
It means Welsh ministers have to weigh up how pay rises will impact the rest of their spending, and whether it has to come from cuts elsewhere.
What does apply to Wales?
Devolution means that health, education, local government and some other services are controlled from Cardiff.
But criminal justice is not. In Wales, police and prison officers are expected to receive a 7% pay rise.
Those serving in the armed forces will also see a 5% rise.
What has the Welsh government said?
The Welsh government offered no official indication on Thursday on what it would do.
A Welsh government spokesperson said: "We will continue to work in partnership with trades unions in Wales. Our budget for 2023-24 is already £900m lower in real terms than it was expected to be at the time of the 2021 spending review.
"The UK government has confirmed the announcement is not backed with any new spending."
What has the UK government said?
Asked how he would pay for increases, Rishi Sunak said it would "mean choices - I'm not shying away from that".
"It's not about cuts, it's just about focusing on public sector workers' pay rather than other things," he added, insisting changes could be made "without impacting frontline service delivery".
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- Published13 July 2023
