The Treasury has said on Monday that pay rises for teachers and the NHS will have to paid from existing budgets.
The Guardian reported the Treasury will not pay for the pay rises which has been recommended by the pay review bodies.
The Times reported that public sector pay review bodies have recommended NHS workers should receive a 3% pay rise, teachers should receive up to 4%.
Labour may except the recommendations, but it may not be enough to prevent strike action as there are people “who haven’t had a lot given to them in recent years.”
A NHS source said, “This will go down really badly.
“These are people who haven’t had a lot given to them in recent years and we know that nurses are gingering up for some kind of industrial action, unions are very upset and it is going to be unrest all over again.”
Government sources have suggested there is a precedent for teachers and the NHS to receive a pay rise, but Downing Street has not made an decisions.
Labour braces for ‘unrest’ as millions of public sector workers could strike
The Guardian reported that Starmer was asked could there be any strike action, he said, “I don’t want to see strike action, I don’t think anybody wants to see strike action.
“And certainly here we are in a healthcare environment with all the staff working really hard. The last thing they want to do is to go into dispute again.
“We solved disputes, we are working with the NHS. It’s because of the way that we are working with the NHS that we are able to bring waiting lists down and make other announcements today.
“What I think we are proving here, what I hope we are proving is if you work with the NHS staff, you get better results than the last government, which just went into battle with them.
“So, we have got our doctors and nurses on the frontline, not the picket line, and I think everybody appreciates that’s a much better way of doing business.”
In December 2024 the government’s initial budget was slammed by unions the British Medical Association had said it is “pay erosion” for their members, Unison called it “barely above the cost of living.”
Two teaching unions, NEU and NASWUT have warned Labour there will strike action if schools do not receive a pay increase for their teachers.
A HM Treasury spokesperson said, “As is part of the usual process we are considering recommendations from the independent pay review bodies and will respond in due course.
“Last year this government accepted the independent pay review bodies’ recommendations in full, providing the first meaningful real terms pay rises for years.”
Stephen Kinnock, the care minister, said on Monday, “We’re all about putting more money into the pockets of working people, but we do also have to ensure that we are balancing the books, and we’ve got to work in terms of public sector pay within fiscal constraints.
“So, of course, we will give these recommendations careful consideration. But I would, of course, also urge our colleagues in the trade union movement to engage constructively with us and recognise the reality of the financial position.”
