London Daily

Focus on the big picture.
Tuesday, Mar 17, 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
Western Allies Urge Restraint as Israel Weighs Expanded Ground Operation in Lebanon
Trump Warns NATO Faces ‘Very Bad’ Future Without Stronger Allied Support in Iran Conflict
UK Minister Says Britain Not Bound to Support Every Demand From U.S. President
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
Starmer Tells Trump Britain Will Not Be Drawn Into Wider Iran War
UK Set to Introduce Steel Tariffs of Up to 50 Percent in New Industrial Strategy
European Governments Decline Trump’s Call to Send Warships to Reopen Strait of Hormuz
Fears Over Iran Conflict Weigh on UK Consumer Confidence
Starmer Says UK Working With Allies on Hormuz Shipping Plan After Trump Raises Pressure
Iran War and Energy Shock Shake Britain’s Economy and Political Debate
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
Deadly Meningitis Outbreak at UK University Leaves Two Dead and Several Seriously Ill
King Charles and Queen Camilla Share Personal Tributes to Their Mothers on UK Mother’s Day
Prince William Honors Princess Diana with Mother’s Day Tribute
UK Economy Stalls in January as Households Cut Back on Eating Out
AI-Generated Singer Becomes Viral Voice for Iranians With New Anthem
London Private Club Founder Plans Exclusive Palm Beach Venue Near Trump’s Mar-a-Lago
Ed Davey Urges Britain to Build Fully Independent Nuclear Missile Capability
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
What the UK Covid Inquiry Is and How It Investigates Britain’s Pandemic Response
US Treasury Links British Polo Patrons to Alleged Venezuelan Oil Proceeds Laundering Scheme
Hundreds Gather in London Despite Ban on Annual Pro-Palestinian March
Two Dead and Multiple Students Seriously Ill After Invasive Meningitis Outbreak at UK University
UK Considers Deploying Ships and Mine-Hunting Drones to Reopen Strait of Hormuz
Starmer and Trump Discuss Urgent Need to Reopen Strait of Hormuz Amid Escalating Iran Conflict
Prince Harry and Meghan Markle’s Planned Australia Visit Draws Mixed Reaction From Local Communities
Trump Calls on France and UK to Help Safeguard Strait of Hormuz Shipping Route
Boris Johnson Labels Bitcoin a ‘Ponzi Scheme’, Sparking Debate in Crypto World
UK Considers Targeted Aid for Vulnerable Households as Energy Costs Rise
Stellantis Urges Immediate Review of UK Electric Vehicle Sales Targets
Home Office Reverses Course to Allow Some Dual Nationals to Enter UK Using EU Passports
Reform UK Proposes Replacing Top Civil Servants With Officials Aligned to Government Agenda
Netflix Adds Critically Acclaimed ‘Best Film of 2025’ With Perfect Rotten Tomatoes Score
‘The Sums Don’t Add Up’: UK Farmers Hit by Soaring Costs as Iran War Disrupts Global Supplies
Confidential UK Biobank Health Records Found Online After Researchers Accidentally Expose Data
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Trump Urges Britain and Allies to Deploy Warships to Safeguard Strait of Hormuz
Middle East War Highlights Strategic Importance of Strong UK–Ireland Cooperation
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Royal Navy to Acquire Twenty Uncrewed Surface Vessels for Autonomous Warfare Testing
Russia Summons British and French Envoys After Ukrainian Storm Shadow Strike on Strategic Facility
Starmer Confirms Britain Will Maintain Sanctions on Russia Despite U.S. Policy Shift
UK Moves to Refine AI Definition in Investment Security Reform
UK Economy Stalls in January as Growth Unexpectedly Falls to Zero
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
×