London Daily

Focus on the big picture.
Friday, Oct 09, 2026

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
UK and Germany Finalize Kensington Treaty to Strengthen Defense and Technology Cooperation
Britain Maintains Diplomatic Mission in East Jerusalem Despite Israeli Closure Deadline
English Councils Push Government to Rethink Proposed Funding Cuts
Scottish Homebuilding Falls to Lowest Level in 11 Years
BBC Chief Matt Brittin Defends Restructuring as Staff Challenge Job Cuts
UK Finance Warns High Energy Costs and Bond Yields Are Complicating Fiscal Outlook
UK Adopts All 44 Recommendations on Regulating AI in Healthcare
Chancellor John Healey Prepares Autumn Budget as Borrowing Costs Strain Public Finances
UK Investigators See Strong Indications of Iranian Link After RAF Fairford Security Operation
Laura Trott Pledges Tighter Controls on Political Activism in UK Classrooms
Welsh Ministers Launch Long-Term Review of North Wales and Anglesey Crossings
Welsh Government Orders 18-Month Study of Road Solutions Around Newport
Reform UK MP Sarah Pochin Faces Scrutiny Over £800,000 Second Home Purchase
British Households Grow More Concerned About Fuel and Energy Prices
NHS Leaders Warn of Rising Winter Pressure on Emergency Departments
Kemi Badenoch Proposes £2.3 Billion Employer National Insurance Cut for Young Workers
Middle East Conflict Could Erase UK Fiscal Headroom, Economists Warn
Manchester City Found Guilty of Multiple Premier League Financial Rule Breaches
UK Security Services Find Strong Indications of Iranian Role in RAF Fairford Incident
Costa Coffee Returns to Operating Profit on Iced Drinks and Menu Changes
Asos Warns Customers After Unauthorized Access to Retail App and Data
Kemi Badenoch Puts Growth and Deregulation at Center of Conservative Conference
Campaigners Warn of Deepening Social Care Crisis for Disabled Adults
Study Finds Rising Early-Onset Cancer Rates Among Adults Under 50 in Britain
UK Coach Operators Warn High Diesel Prices Could Force Route Cuts
FCA Opens Independent Review Into Handling of Epstein-Linked Whistleblower Case
Argentina Vows to Block Falkland Islands Offshore Oil Development
UK Chancellor Prepares Fiscal Measures and Welfare Reforms Ahead of Autumn Budget
Sainsbury’s and Morrisons Explore Potential Multi-Billion-Pound Merger
UK Weighs Tariffs on Chinese Electric Vehicles to Align With European Union
UK Threatens Diplomatic Expulsions Over Planned Closure of East Jerusalem Consulate
UK Energy Price Cap Hits Three-Year High as Middle East Conflict Raises Costs
Seventh Arrest Made in Suspected Terror Plot at RAF Fairford
Systemic Education Collapse Sparks Mass Student Uprisings in France
Green Party Faces Backlash Over Resolution Equating Zionism With Racism
Conservatives Debate Scrapping Environmental Rules for New Homes
Cornwall Insight Warns UK Energy Bills Could Approach £2,000 This Winter
UK Coach Operators Warn of Service Cuts as Diesel Prices Exceed £2
Scottish Parliament Approves £68 Billion Budget With New Tax and Property Measures
FCA Opens Independent Review Into Handling of Epstein Whistleblower
UK Government Drops Plan to Suspend Jury Trials in England and Wales
Bank of England Holds Interest Rate at 3.75% as Markets Watch November
Two Iranian Nationals Charged Over Alleged Plot Targeting Manchester Jewish Community
UK Fiscal Headroom Halves to £11 Billion Ahead of Budget, EY Warns
US Bomber Withdrawal From RAF Fairford Prompts UK Security Review
Sarah Wakfer Appointed Chair of Northern Ireland’s Health and Care Regulator
Scotland Housing Completions Fall to 11-Year Low Amid National Shortage
UK Water Companies Face Tougher Oversight and Unannounced Regulatory Inspections
Middle East Conflict Pushes UK Fuel and Wholesale Energy Prices Higher
Andy Burnham Raises Prospect of Second Brexit Referendum in Review of UK-EU Relations
×