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Surging inflation exposes folly of government’s ‘derisory’ pay policy

16 Jun 2021
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After a wretched year and a disastrous decade of cuts, workers need to be properly valued for the work they do

GMB, the UK's general union, has renewed calls for the Government to scrap its real-terms public sector pay cuts after a sharp increase in the cost of living.

The ONS reported today [Wednesday 16 June] that the RPI measure reached 3.3 per cent in May. This was the highest rate since 2018, and it was more than double the rate for March (at 1.5 per cent).

The CPI and CPIH measures also jumped to 2.1 per cent.

Gary Smith, GMB General Secretary, said:

“The cost of living is surging as the economy opens up - if wages do not rise employers will face a recruitment and retention crisis.

“This exposes the folly of the Government’s derisory, below inflation pay policy for public sector workers and presents a major challenge for any ‘levelling-up’ agenda across the wider economy.

“After a wretched year and a disastrous decade of cuts, workers across our nations and regions need to be properly valued for the work they do.

“Instead of severe real-terms cuts on the pay of key workers, a credible recovery needs pay to not only beat the cost of living but also start restoring what’s been lost over the last ten years.”

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