Public Sector Pay 2024-25 Debate

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Department: HM Treasury
Wednesday 17th January 2024

(3 months, 3 weeks ago)

Westminster Hall
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Dawn Butler Portrait Dawn Butler (Brent Central) (Lab)
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I thank my hon. Friend the Member for Cynon Valley (Beth Winter) for securing this very important debate.

It is interesting, isn’t it, that there are people who claim to work in the public interest and can make millions of pounds of profit while the Government do not bat an eyelid, but public sector workers who have asked for a pay rise in line with inflation are called greedy or unreasonable? ONS figures show that the average public sector worker is earning £177 less a month, in real terms, than in 2010.

This Government consistently and constantly vilify trade unions. Why? Because they are the aspirational vehicle for the working class. I proudly stand on the picket lines to support workers who are fighting for fair pay and better working conditions. It is strange, isn’t it, that the Government do not want unions fighting for their members, but are more than okay with creating VIP lanes, through which Ministers can recommend mates and Tory donors, so they can fill their pockets with public cash?

Every day, people are finding it hard to live. In the past two years, workers have faced the steepest rise in the cost of living for more than 40 years. Since 2010, the cost of living has risen by 73.2%, and over the past year, mortgage interest rates have risen by 48.5%. The Resolution Foundation says that annual repayments for those who are re-mortgaging are set to rise by £2,900. Rents have gone up as a percentage of wages. Food prices have risen by 23%, electricity by 39.4%, gas by 58.7%—I could go on. The value of an average public sector worker’s wages has declined by 25%. We should all be ashamed that that is happening on our doorstep and people cannot afford to live.

In contrast, dividend payments to shareholders have increased by 8% to £94.3 billion. We are living in a topsy-turvy Alice in Wonderland world. I remember what it said on the wall of the trade union where I used to work: “To make the rich work harder, you pay them more. To make the poor work harder, you pay them less.” It is about time we turned the tables and started appreciating public sector workers.