
Why the government is wrong to claim that pay increases for public sector workers will lead to further inflation
Unlike in the private sector, the public sector cannot increase its costs for consumers to make up for the higher wages.

Unlike in the private sector, the public sector cannot increase its costs for consumers to make up for the higher wages.

Using data from the ONS, the chart shows how much public sector pay has fallen behind that of private sector pay since 2010.

“There was a study done by the Bank of International Settlements recently about the risk of wage induced inflation across Western economies and they said wages right now represent either no risk or actually negative figures”

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The Institute of Employment Rights surveyed 2,400 workers in these key manufacturing sectors and found nine out of ten workers are in favour of working shorter hours including a four-day week.

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“What is going on today in the UK is the same that is going on in the United States of America, the same bloody thing.”