Inflation-matching pay rise for public sector “all gain and no pain” say Greens

18 July 2023

A new report from the Institute for Public Policy Research (IPPR) refutes claims by Rishi Sunak and his government that larger wage settlements for public sector workers would fuel inflation [1]. They say that inflation-matching pay rises, financed from taxation, would have zero impact on inflation. 

Reacting, Green Party co-leader Adrian Ramsey said:

“This research draws a line under the argument that paying public service workers decently fuels inflation. It shows that if inflation-matching pay rises were financed from taxation, the impact on inflation would be zero. 

“Greens have long championed a wealth tax to help fund our public services, contribute towards the transition to a greener economy, and create a more equal society [2]. It is clear that such a tax – to fund proper pay rises for public service workers – will be all gain and no pain.”

Notes

1. Public sector pay rises of 10% would add little to inflation, says UK thinktank | Public sector pay | The Guardian

2. Tax wealthiest 1% to fund home insulation, say Greens – BBC News

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