Pay frozen for public sector

Edith Hancock
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PUBLIC sector pay will be capped at a one per cent rise each year, George Osborne has said.

The chancellor said a pay freeze would protect public service jobs.

The proposed cap is still above inflation, but could become a real-terms cut over the next four years.

Osborne said: “We will continue to restrict public sector pay awards with a rise of one per cent per year for the next four years. Public spending should reflect public priorities.”