Public sector workers now earn about 6 per cent more than their private sector counterparts — triple the gap seen at the start of this year — according to new analysis by the Resolution Foundation.
The think tank’s research indicates that a series of generous wage settlements under Sir Keir Starmer’s Government have widened the gulf between the two sectors.
The revelation is likely to fuel concerns that Whitehall is prioritising union demands over taxpayers, who have faced a £40bn tax raid in Rachel Reeves’s maiden Budget. Next year’s pay negotiations are already shaping up to be contentious, with teachers and medical professionals threatening industrial action over the Chancellor’s proposed above-inflation pay rise, which they consider insufficient.
Data shared by the Resolution Foundation show public sector monthly pay — in health, education and public administration — recently exceeded £2,640, compared with around £2,500 in the private sector. This shift has been driven largely by settlement deals for key groups such as junior doctors, who accepted a 22 per cent rise over two years, and train staff, who secured a 14 per cent deal and a halt to certain workplace reforms.
Mike Brewer, interim head of the Resolution Foundation, said: “Private sector pay has risen gradually over the past year, but the real change in the public sector happened in October, when NHS pay settlements took effect.”
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