London Daily

Focus on the big picture.
Thursday, Aug 27, 2026

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
Andy Burnham Drops Plan to Cap Political Donations
Conservative Leadership Contest Intensifies as Robert Jenrick Attacks Kemi Badenoch
French-Born Defence Secretary Wes Streeting Condemns Homophobic Abuse Since Taking Office
UK Government Delays Commercial Robotaxi Rollout in London Over Regulatory Gaps
NHS Complaints About Autism and ADHD Care Waiting Times Triple Over Five Years
UK Government Launches 10,000 Work Placements for Young People With Sainsbury's
NHS England to Offer Free At-Home Cervical Cancer Screening Kits
EU Biometric Border Checks Cause Delays of Up to Five Hours for British Travellers
US Imposes Economic Sanctions on UK-Based Protest Group Palestine Action
Two Planned UK Datacentres Could Produce More Annual Carbon Emissions Than ExxonMobil's Entire UK Operation
London Surgeons Complete First Artificial Intelligence-Assisted Brain Tumour Removal
UK Services Growth Rebounds as Consumer Confidence Reaches Two-Year High
Ofgem Confirms Four Percent October Energy Price Cap Increase for UK Households
Government Considers Insolvency Law Changes to Bring Thames Water Into Public Ownership
Andy Burnham Signs Artificial Intelligence Defence Pact During Visit to Kyiv
Church of England Faces Renewed Scrutiny Over Historical Safeguarding Failures
Reform UK Proposes £30 Tax Credit for Long HMRC Telephone Queues
Greater Manchester Secures More Than £100 Million to Upgrade Victorian Railway Stations
East Midlands Railway Urges Essential Travel Ahead of Bank Holiday Strikes
UK Economy Grows 0.4 Percent in Second Quarter as Global and Energy Pressures Weigh
UK Government and Sainsbury’s Launch Plan for 10,000 Youth Work Experience Placements
Scottish Government Plans Tighter Remote-Working Rules and Possible Voluntary Redundancies
Scottish Budget Faces More Than £700 Million Reduction After Tax Revenue Adjustment
Nearly 100 Labour MPs Press Andy Burnham to Back Electoral Reform Commission
UK Energy Price Cap Rises Four Percent to £1,723 as Middle East Conflict Drives Wholesale Gas Costs
Turnbull Warns AUKUS Could Leave Australia Without Promised Nuclear Submarines
California Billionaires Pour More Than $150 Million Into Fight Over Proposed Wealth Tax
German Broadcaster Goes Dark to Warn AfD Could End Its Saxony-Anhalt Service
Badenoch Plans Major Shadow Cabinet Reshuffle as Tories Struggle in Third Place
UK Government Demands Action Against Social Media Content Promoting Dangerous Driving
Labour Backbenchers Prepare Push for Electoral Reform Under Andy Burnham
Fire at Gatwick Airport Car Park Destroys 140 Vehicles and Cuts Local Power
UK Plans Voluntary Libido-Suppressing Medication Programme Across 20 Prisons
NHS England Launches Free Home Cervical Cancer Testing Kits Nationwide
Imperial College Study Warns North Sea Oil Projects Could Cause Hundreds of Billions of Pounds in Climate Damage
UK Inflation Rises to 2.9% as Middle East Conflict Pushes Up Energy Costs
Prime Minister Andy Burnham Visits Kyiv to Strengthen UK Support for Ukraine
Premier League Season Opens With Managerial Debuts and Dramatic Early Fixtures
England Cricket Drops Brydon Carse From Selection Pending Club Investigation
Graeme Dott Convicted of Child Sexual Abuse Offences in Scotland
Protesters Occupy British Aircraft Parts Factory Over Alleged Military Links to Israel
More Than 100 Former British and French Diplomats Call for Sanctions on Israel
Ipsos Poll Shows British Public Split Between Immigration Controls and Economic Growth
British Cybersecurity Agencies Raise Alert Over Growing Threats to Critical Infrastructure
Two-Thirds of England Now Under Official Drought Conditions After Prolonged Summer Heat
Institute of Directors Calls for Urgent Action to Revive Britain’s Stagnant Labour Market
Andy Burnham Visits Kyiv on First Foreign Trip and Pledges Continued British Support for Ukraine
New Daily Diabetes and Weight-Loss Pill Launches in UK Pharmacies
UK Payroll Employment Falls by 94,000 as Labour Market Cools
Onshore Wind Planning Applications in England Reach Ten-Year High After Rules Eased
×