Vince Cable
Main Page: Vince Cable (Liberal Democrat - Twickenham)Department Debates - View all Vince Cable's debates with the HM Treasury
(7 years, 4 months ago)
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Elizabeth Truss
My hon. Friend is right to point out that, by having this balanced policy, we have protected jobs in the public sector and we have protected important services. The Office for Budget Responsibility outlined in its report that our policy protects the jobs of 200,000 public sector workers. That is important for those people, but it is also important for our constituents who receive those public services and who are seeing improvements in our schools and hospitals, and a reduction in crime. It is important that we take that balanced approach.
Sir Vince Cable (Twickenham) (LD)
Does the Chief Secretary not accept that there was a fundamental difference between the economic conditions when the 1% cap was introduced, when there was a fear of large-scale unemployment and deflation, and the economic conditions of the present day, when there are chronic labour shortages throughout the public sector and salaries have been eroded by rising inflation? Will she not lift the cap to reflect basic economic reality?
Elizabeth Truss
First of all, public sector pay is comparable with private sector pay. In addition, public sector pensions are set at a higher level, on average, than private sector pensions. The pay review bodies have a remit to look at retention and recruitment when they make their independent decisions. Of course, I will look at all their recommendations when they come out. The right hon. Gentleman has made an omission that was also made earlier; a lot of those roles have pay increments independent of the 1% cap. Teachers’ pay increased by 3.3% in the last year for which we have records, so it is not right to talk solely about the 1% cap. In fact, public sector workers are rewarded in a number of different ways.