Starmer says entitled to ask for pay rise in rebuke of Bank of England
Workers have every right to ask for a pay rise amid the UK’s surging inflation rate and cost of living crunch, Labour leader Sir Keir Starmer has said.
In a direct rebuke of comments made by Bank of England governor Andrew Bailey, the Labour leader said “it’s very difficult to universally say” to workers that they should not request a pay rise from their employer.
Bailey said earlier this month that the UK needed “restraint in pay bargaining, otherwise [inflation] will get out of control”.
When asked by the BBC if that meant workers should not ask for large pay rises, Bailey said: “Broadly, yes.”
The Consumer Price Index (CPI) rose by 5.5 per cent in the 12 months to January – a 30-year-high – and is expected to hit upwards of 7 per cent this year.
It comes as families are also facing a 1.25 percentage point increase in National Insurance from April.
When asked by the Guardian today if he agrees with Bailey, Starmer said: “It’s very difficult to universally say to people – you are not entitled to even ask for a pay rise.”
Downing Street also issued a rebuke to Bailey’s comments earlier this month.
“It’s not something that the Prime Minister is calling for. We obviously want a high-growth economy and we want people’s wages to increase,” a Number 10 spokesperson said.