London Daily

Focus on the big picture.
Friday, Oct 16, 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
MI5 Warns of Growing Russian Sabotage and Espionage Threats Across Britain
UK Prime Minister Andy Burnham Plans Brussels Talks to Renegotiate Post-Brexit Trade Deal
MI5 Warns of Rising Russian and Iranian Sabotage Threats to British Military Facilities
UK Prime Minister Andy Burnham Pledges Closer EU Ties as MI5 Reveals Russian Brexit Interference
UK Orders Security Review Following Reported Killing of Former Politician Ann Widdecombe
UK Prime Minister Andy Burnham Meets German Chancellor Merz to Strengthen European Security Ties
Nearly 100,000 NHS Patients Treated in Hospital Corridors as England Braces for Winter Pressures
UK Government Rejects US-Russia Diesel Agreement and Reaffirms Sanctions Against Moscow
UK and Germany Agree to Deepen Security and Economic Cooperation Following Berlin Talks
British Prime Minister Burnham Pledges Closer EU Ties During Visit to Germany
UK Announces New Sanctions on 17 Russia-Linked Entities During Foreign Secretary's Ukraine Visit
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
×