London Daily

Focus on the big picture.
Saturday, Oct 18, 2025

Public sector pay rises - who decides and how?

Public sector pay rises - who decides and how?

From nurses to rail workers, public sector workers across the board are striking this Christmas as most call for above-inflation pay rises to help with the cost of living crisis.

Public sector workers across several different industries are striking this Christmas as they call for better pay and conditions.

Unions say most of the pay rises awarded earlier this year are not enough for people to live on, especially with the current high level of inflation.

As those in the public sector, of which there are about 5.7 million, receive taxpayers' money, the amount they are paid is determined by their overall employer - the government.

However, there is a lengthy process to determine their pay before ministers ever see a number.

How are public sector pay rises determined?

Pay review bodies

Independent pay review bodies play an integral role in informing the government's final decision on how about 45% of the public sector gets paid - including teachers, nurses, doctors, police officers and members of the armed forces.

There are eight pay review bodies made up of experts in their field whose appointments are made on merit, not political affiliation.
Advertisement

The process begins when the secretary of state for the relevant area requests recommendations on employee pay from the pay review bodies.

They will set a timeline and parameters such as asking the bodies to consider issues such as affordability, retention, recruitment and the state of the entire labour market.

Departments' spending on pay is limited by the amount of funding they receive from the Treasury.



A range of sources, such as trade unions and their members, as well as employers, then submit evidence to the pay review bodies, who will usually visit staff from their sector to determine concerns and opinions.

The government then also submits its formal pay offer at this stage for all levels of staff affected.

After receiving all the evidence from the relevant groups, the pay review bodies then recommend what the level of pay should be.

What happens after the recommendations are made?


The government chooses when it will respond to and publish the reports made by the pay review bodies.

Secretaries of state usually respond to the recommendations by issuing a written ministerial statement in parliament.

On the whole, the recommendations are accepted by secretaries of state, but there have been times when they have overridden the recommendations.

Sectors can disagree with the pay changes and can strike over the decision, but the government has the ultimate say.

Are there pay review bodies for all public sector jobs?


No.

Civil servants not in the senior civil service have their pay set by individual departments, according to guidance issued by the Cabinet Office and the Treasury.

Local government staff (not teachers) have their pay determined by their employers and trade unions.

Firefighters' pay is set by a separate body that is part of the National Joint Council for Local Government Services, which tends to follow the Treasury's public sector pay policy, although it is not bound by it.

Devolved governments - Northern Ireland, Scotland and Wales - set their own pay policy for public bodies under their control.

Newsletter

Related Articles

0:00
0:00
Close
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
Bessent Accuses China of Dragging Down Global Economy Amid New Trade Curbs
U.S. Revokes Visas of Foreign Nationals Who ‘Celebrated’ Charlie Kirk’s Assassination
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
DJI Loses Appeal to Remove Pentagon’s ‘Chinese Military Company’ Label
EU Deploys New Biometric Entry/Exit System: What Non-EU Travelers Must Know
Australian Prime Minister’s Private Number Exposed Through AI Contact Scraper
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
China’s lesson for the US: it takes more than chips to win the AI race
Australia Faces Demographic Risk as Fertility Falls to Record Low
California County Reinstates Mask Mandate in Health Facilities as Respiratory Illness Risk Rises
Israel and Hamas Agree to First Phase of Trump-Brokered Gaza Truce, Hostages to Be Freed
French Political Turmoil Elevates Marine Le Pen as Rassemblement National Poised for Power
China Unveils Sweeping Rare Earth Export Controls to Shield ‘National Security’
The Davos Set in Decline: Why the World Economic Forum’s Power Must Be Challenged
France: Less Than a Month After His Appointment, the New French Prime Minister Resigns
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Sarah Mullally Becomes First Woman Appointed Archbishop of Canterbury
×