London Daily

Focus on the big picture.
Monday, Jul 14, 2025

UK minister warns public workers to brace for real-term pay cuts amid rail strikes

UK minister warns public workers to brace for real-term pay cuts amid rail strikes

No 10 urges private sector firms against giving out pay rises as inflation feared to rise above 10%

Most public sector workers should expect a real-terms pay cut this year, a minister has said ahead of the biggest rail strikes in 30 years, with Downing Street warning private employers against giving out pay rises.

With inflation feared to potentially rise above 10% by the end of the year, No 10 urged private sector firms not to hike wages as it would make the issue worse.

Simon Clarke, the chief secretary to the Treasury, said the government would “continue to support” negotiations between rail companies and unions but did not have a direct role in trying to prevent the biggest rail strikes in three decades, which were due to start on Monday night.

“I do think it’s important that we send a message this week that industrial action is likely to proceed, and therefore people make sensible preparations now, because there’s no point giving false hope, if you like, that these strikes can be avoided. At this stage it is likely that they will proceed,” he told BBC One’s Breakfast programme.

Ministers have faced calls to do more to try to prevent three planned 24-hour walkouts this week by RMT members, the first of which starts just after midnight on Tuesday morning. This will result in only one in five trains running on strike days, halting services altogether in much of northern and south-west England, Wales and Scotland.

No 10 said on Monday afternoon it “wouldn’t be helpful” for ministers to join the negotiations at this stage, and government sources have indicated they believe union leaders are just “flexing their muscles”.

Downing street also urged private sector organisations to show restraint in awarding pay rises.

Boris Johnson’s spokesperson said that given inflation was nudging double digits, “we need to, as a country, avoid doing anything that would stoke inflationary pressures further”.

They said there were “a number of factors that could stoke inflation that people need to be mindful of” and that “pay rises could be one of those areas that could be of detriment and it’s important that people understand the balance we are trying to strike”.

Johnson’s spokesperson also admitted that his pledge of a “high-wage” economy remained more of an objective given the “short- to medium-term inflationary pressures”.

They said: “The government needs to adapt to some of the global challenges we’re seeing caused by exiting a pandemic and war in Europe. But that does not change our ambition.”

Clarke, in an interview with Sky News, said: “The government doesn’t sit as part of those talks for a very good reason. We don’t intervene in the specific process between an employer and the unions representing employees, but we are there to provide the support and the enabling framework for those talks to succeed. Ultimately, we don’t control all the levers that need to be held here.”

The strike has been called over feared job losses amid restructuring, and concerns that inflation forecast to reach 11% this year would mean staff getting a real-terms pay cut. Other professions, including teachers, could take potential action over below-inflation pay rises.

Clarke said people should not have “unrealistic expectations” about pay, and that those in the public and private sectors should brace themselves for real-terms pay cuts this year.

“In the current situation with inflation, which is a real issue, we do have to be very, very sensitive,” he told Sky.

“If we start having pay awards that take us close to double digits, then we are going to see this problem prolong. That is just the economic reality of where we find ourselves at the moment.”

John Leach, the assistant general secretary of the RMT union, said members would seek “justice for themselves”.

“They kept this country moving through the pandemic, they keep the railways moving every single day and it’s that kind of grit and determination that’s going to mean that they will stick with this negotiation and justice for themselves in that regard, right through to the end,” he told BBC Radio 4’s Today programme.

Newsletter

Related Articles

0:00
0:00
Close
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
×