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LABOUR PM Keir Starmer is poised for a clash with the unions after downplaying the likelihood of real-terms pay rises for public sector workers in upcoming negotiations, sparking widespread warnings of recruitment and staffing crises.
Starmer has cautioned the unions to brace themselves for disappointment, ahead of imminent findings from various pay review bodies.
Unions representing health staff and teachers warned that inadequate pay awards could worsen recruitment and retention crises in both sectors. The primary teaching union stated that education was particularly ‘at breaking point’.
During a visit to Washington DC for the NATO summit, the prime minister was asked if he would accede to calls for above-inflation pay awards in the upcoming public sector negotiations.
Starmer responded: ‘No, is the answer to the last bit of that question. Obviously, there are a number of pay settlements to be addressed annually.
‘But the finances are in a very poor state, I think that is obvious. And that’s why we’ve been cautious in our statements leading up to the election, and we’ll remain cautious post-election.
‘Currently, I’m prioritising the most significant and critical issues.’
Public sector pay is expected to be one of the most immediate and visible challenges for the new government as it attempts to manage expectations for improving services amidst a self-described highly constrained fiscal environment. With Starmer consistently ruling out any increases in income tax, national insurance, or VAT, and new tax revenues already allocated, Labour has expressed hopes that ‘economic growth’ will generate additional funds.
Unions have consistently argued that falling real-terms pay is driving many out of public sector roles, particularly in teaching, nursing, and medicine, and is also complicating recruitment efforts. The National Education Union (NEU), the largest teachers’ union, cited research indicating that increased workloads and stagnant pay were contributing to a significant rise in staff contemplating leaving the profession.
Following a series of strikes, state school teachers in England accepted a 6.5% pay offer last year, with unions warning that this was insufficient to recover from years of real-terms pay cuts.
Daniel Kebede, general secretary of the NEU, stated: ‘This is not what we want to hear from the new prime minister.
‘We expect an above-inflation teacher pay offer that is fully funded. Failing to provide properly funded pay increases will have severe costs in terms of recruitment, retention, and the delivery of education.
‘Education is already at breaking point. Another below-inflation pay rise will break it.’
The organisation representing over 1 million NHS England staff accepted a two-year pay agreement last year, though Unite and the Royal College of Nursing (RCN) remain at odds.
Sharon Graham, general secretary of Unite, which represents around 100,000 health sector workers, remarked: ‘The biggest crisis facing the NHS and other public sector areas is the inability to recruit and retain workers, caused by many years of pay freezes and below-inflation pay rises. Experienced staff are leaving the NHS in droves. If we don’t address the people crisis, we won’t resolve the crisis in the NHS. New scanners need staff to operate them. Whatever the plan, it will require more money. This is the undeniable fact.’
An RCN spokesperson commented: ‘The next NHS pay award must be fair and come swiftly. We will consult our members on whether it meets their expectations. Any pay award must begin to reverse the staffing crisis in our health service.’
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