Hammond eases public sector pay cap, but the squeeze goes on

The chancellor insisted police and prison officers’ rises will come from existing budgets – and they are well below inflation

Philip Hammond’s re-emergence as a power in the cabinet can be seen clearly as the battle rages inside government over the thorny question of public sector pay.

There may have been a green light from No 10 to rip up the current public sector pay cap and give the police and prison officers a 1% rise plus a 1% bonus for 2017-18, but the Treasury has made sure the bonus is not part of workers’ consolidated, pensionable pay and is funded from within existing budgets.

Related: Public sector pay cap to be lifted next year, No 10 says

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Read the original at Economics | The Guardian.