Budget Sees George Osborne Freeze Public Sector Pay Rises At 1% For Four Years | HuffPost

Public Sector Pay Rises Frozen At 1% For Four Years

Ned Simons— The Huffington Post UK

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Chancellor of the Exchequer George Osborne delivers his Budget statement to the House of Commons, London.

PA/PA Wire

George Osborne has announced public sector pay rises will be frozen at one per cent for the next four years.

The chancellor has further 430,000 public sector job cuts, which he hopes will be balanced out by a rise in the number of jobs in the private sector.

The chancellor used his Budget statement today, the first all-Tory Budget in 19 years, to extend the cap on public sector pay rises which he introduced during the coalition years.

"I know there has already been a period of restraint, but we said last autumn that we would need to find commensurate savings in this Parliament. So to ensure we have public services we can afford, and protect more jobs, we will continue recent public sector pay awards with a rise of 1% per year for the next four years," he said.

The move will anger public sector unions representing teachers, civil servants, NHS staff and others.

Labour's shadow chancellor Chris Leslie said the party would officially support the move. Perhaps mindful that the party's leadership candidates have yet to comment on the Budget, he said he would not "just oppose literally everything". Leslie said he accepted that "pay restraint is sadly necessary over this period".

However backbench Labour MPs were less than happy. Wansbeck MP Ian Lavery said: "Osborne robbing the excellent public sector workers to pay for public services,another 4 years at 1%. Absolutely shocking, highly provocative."

And Stockton North MP Alex Cunnigham said: "Millionaire chancellor puts boot in on public sector workers with 1% pay rise. But I'm sure his rich pals will be okay."

It was also criticised by Ukip's MP Douglas Carswell who said it was "not sustainable".

Budget dislikes 1: public sector pay freeze at 1percent not sustainable
— Douglas Carswell MP (@DouglasCarswell) July 8, 2015

The Lib Dems said public sector workers have already endured five years of pay restraint. "Now Osborne is punishing them for dedication with four more years of pain. A junior police officer on £25,000 faces a real terms cut of £600," the party said in a statement.

Summer Budget 2015

UK Summer Budget 2015(01 of25)

LONDON, UNITED KINGDOM - JULY 08: Chancellor of the Exchequer George Osborne (C) poses for photographers outside 11 Downing Street in London, England before presenting his summer budget to Parliament on July 8, 2015. (Photo by Tolga Akmen/Anadolu Agency/Getty Images) (credit:Anadolu Agency via Getty Images)

The First Conservative Budget Since The Election(02 of25)

LONDON, ENGLAND - JULY 08: The Chancellor of the Exchequer George Osborne (2nd R) and his treasury team Greg Hands, David Gauke, Damian Hinds, Harriet Baldwin and Lord O'Neill of Gatley present the ministerial red box up to the media as he leaves 11 Downing Street on July 8, 2015 in London, England. The Chancellor is presenting his summer budget today to Parliament and is expected to announce Â£12 billion in welfare cuts. (Photo by Stuart C. Wilson/Getty Images) (credit:Stuart C. Wilson via Getty Images)

Chancellor Of The Exchequer George Osborne Presents Tory-Majority Government U.K. Budget(03 of25)

George Osborne, U.K. chancellor of the exchequer, holds the dispatch box containing the first budget by a Tory-majority government in almost two decades, outside 11 Downing Street in London, U.K., on Wednesday, July 8, 2015. Osborne, whose election campaign played heavily on Tory values of economic prudence and the need for more austerity to eliminate the budget deficit, will draw on his newly granted authority to press ahead with plans to slash a further 12 billion pounds ($19 billion) from welfare costs. Photographer: Jason Alden/Bloomberg via Getty Images (credit:Bloomberg via Getty Images)

The First Conservative Budget Since The Election(04 of25)

LONDON, ENGLAND - JULY 08: The Chancellor of the Exchequer George Osborne holds his ministerial red box up to the media as he leaves 11 Downing Street on July 8, 2015 in London, England. The Chancellor is presenting his summer budget today to Parliament and is expected to announce Â£12 billion in welfare cuts. (Photo by Peter Macdiarmid/Getty Images) (credit:Peter Macdiarmid via Getty Images)

BRITAIN-BUDGET-POLITICS-ECONOMY-GROWTH(05 of25)

British Chancellor of the Exchequer, George Osborne holds up the Budget Box as he poses for photographs with his ministerial team outside 11 Downing Street in central London, on July 8, 2015, before unveiling the government's budget to parliament. British finance minister George Osborne will announce austerity cuts in the budget on Wednesday, although the first all-Conservative budget for 20 years is expected to be less harsh than previously feared. AFP PHOTO / BEN STANSALL (Photo credit should read BEN STANSALL/AFP/Getty Images) (credit:BEN STANSALL via Getty Images)

UK Summer Budget 2015(06 of25)

LONDON, UNITED KINGDOM - JULY 08: Chancellor of the Exchequer George Osborne (C) poses for photographers outside 11 Downing Street in London, England before presenting his summer budget to Parliament on July 8, 2015. (Photo by Tolga Akmen/Anadolu Agency/Getty Images) (credit:Anadolu Agency via Getty Images)

UK Summer Budget 2015(07 of25)

LONDON, UNITED KINGDOM - JULY 08: Chancellor of the Exchequer George Osborne (2nd L) poses for photographers outside 11 Downing Street in London, England before presenting his summer budget to Parliament on July 8, 2015. (Photo by Tolga Akmen/Anadolu Agency/Getty Images) (credit:Anadolu Agency via Getty Images)

Summer Budget 2015(08 of25)

Prime Minister David Cameron congratulates Chancellor of the Exchequer George Osborne after he delivered his Budget statement to the House of Commons, London. (credit:PA/PA Wire)

Summer Budget 2015(09 of25)

Conservative MPs wave their order papers after Chancellor of the Exchequer George Osborne delivered his Budget statement to the House of Commons, London. (credit:PA/PA Wire)

Summer Budget 2015(10 of25)

Works and Pensions Secretary Iain Duncan Smith as he listens to Chancellor of the Exchequer George Osborne deliver his Budget statement to the House of Commons, London. (credit:PA/PA Wire)

Summer Budget 2015(11 of25)

Chancellor of the Exchequer George Osborne deliver his Budget statement to the House of Commons, London. (credit:PA/PA Wire)

Summer Budget 2015(12 of25)

Chancellor of the Exchequer George Osborne delivers his Budget statement to the House of Commons, London. (credit:PA/PA Wire)

Anti-Austerity Protests After The Summer Budget(13 of25)

LONDON, ENGLAND - JULY 08: Protesters gather outside the Houses of Parliament as the Chancellor of the Exchequer George Osborne delivers his Budget to the house on July 8, 2015 in London, England. The Chancellor presented his summer budget to Parliament today, announcing Â£12 billion in welfare cuts. (Photo by Dan Kitwood/Getty Images) (credit:Dan Kitwood via Getty Images)

Anti-Austerity Protests After The Summer Budget(14 of25)

LONDON, ENGLAND - JULY 08: Protesters gather outside the Houses of Parliament as the Chancellor of the Exchequer George Osborne delivers his Budget to the house on July 8, 2015 in London, England. The Chancellor presented his summer budget to Parliament today, announcing Â£12 billion in welfare cuts. (Photo by Dan Kitwood/Getty Images) (credit:Dan Kitwood via Getty Images)

The First Conservative Budget Since The Election(15 of25)

LONDON, ENGLAND - JULY 08: Secretary of State for Energy and Climate Change Amber Rudd (L) departs 10 Downing street prior to The Chancellor of the Exchequer George Osborne presenting his ministerial red box to the media on July 8, 2015 in London, England. The Chancellor is presenting his summer budget today to Parliament and is expected to announce Â£12 billion in welfare cuts. (Photo by Stuart C. Wilson/Getty Images) (credit:Stuart C. Wilson via Getty Images)

The First Conservative Budget Since The Election(16 of25)

LONDON, ENGLAND - JULY 08: Chancellor of the Exchequer George Osborne leads his Treasury team (from left) Commercial Secretary to the Treasury Lord ONeill of Gatley, Exchequer Secretary to the Treasury Damien Hinds, Financial Secretary to the Treasury David Gauke, City Minister Harriett Baldwin and Chief Secretary to the Secretary Greg Hands out of No11 Downing Street in London today to deliver his first budget of the new Conservative governmenton July 8, 2015 in London, England. The Chancellor is presenting his summer budget today to Parliament and is expected to announce Â£12 billion in welfare cuts. (Photo by Stefan Rousseau - WPA Pool /Getty Images) (credit:WPA Pool via Getty Images)

UK Summer Budget 2015(17 of25)

LONDON, UNITED KINGDOM - JULY 08: Chancellor of the Exchequer George Osborne is seen outside 11 Downing Street in London, England before presenting his summer budget to Parliament on July 8, 2015. (Photo by Tolga Akmen/Anadolu Agency/Getty Images) (credit:Anadolu Agency via Getty Images)

The First Conservative Budget Since The Election(18 of25)

LONDON, ENGLAND - JULY 08: Chancellor of the Exchequer George Osborne leads his Treasury team (from left) Commercial Secretary to the Treasury Lord ONeill of Gatley, Exchequer Secretary to the Treasury Damien Hinds, Financial Secretary to the Treasury David Gauke, City Minister Harriett Baldwin and Chief Secretary to the Secretary Greg Hands out of No11 Downing Street in London today to deliver his first budget of the new Conservative governmenton July 8, 2015 in London, England. The Chancellor is presenting his summer budget today to Parliament and is expected to announce Â£12 billion in welfare cuts. (Photo by Stefan Rousseau - WPA Pool /Getty Images) (credit:WPA Pool via Getty Images)

BRITAIN-BUDGET-POLITICS-ECONOMY-GROWTH(19 of25)

Police stand guard at the entrance to Downing Street in central London, on July 8, 2015, following a protest. British finance minister George Osborne will announce austerity cuts in the budget on Wednesday, although the first all-Conservative budget for 20 years is expected to be less harsh than previously feared. AFP PHOTO / BEN STANSALL (Photo credit should read BEN STANSALL/AFP/Getty Images) (credit:BEN STANSALL via Getty Images)

The First Conservative Budget Since The Election(20 of25)

LONDON, ENGLAND - JULY 08: Chancellor of the Exchequer George Osborne leads his Treasury team (from left) Commercial Secretary to the Treasury Lord ONeill of Gatley, Exchequer Secretary to the Treasury Damien Hinds, Financial Secretary to the Treasury David Gauke, City Minister Harriett Baldwin and Chief Secretary to the Secretary Greg Hands out of No11 Downing Street in London today to deliver his first budget of the new Conservative governmenton July 8, 2015 in London, England. The Chancellor is presenting his summer budget today to Parliament and is expected to announce Â£12 billion in welfare cuts. (Photo by Stefan Rousseau - WPA Pool /Getty Images) (credit:WPA Pool via Getty Images)

Summer Budget 2015(21 of25)

Protesters against the budget and the government's public spending cuts demonstrate outside the Houses of Parliament in London today. (credit:Stefan Rousseau/PA Wire)

Summer Budget 2015(22 of25)

Protesters against the budget and the government's public spending cuts demonstrate outside the Houses of Parliament in London today. (credit:Stefan Rousseau/PA Wire)

Summer Budget 2015(23 of25)

Protesters against the budget and the government's public spending cuts demonstrate outside the Houses of Parliament in London today. (credit:Stefan Rousseau/PA Wire)

The First Conservative Budget Since The Election(24 of25)

LONDON, ENGLAND - JULY 08: Home secretary Theresa May departs 10 Downing street prior to The Chancellor of the Exchequer George Osborne holding his ministerial red box up to the media on July 8, 2015 in London, England. The Chancellor is presenting his summer budget today to Parliament and is expected to announce Â£12 billion in welfare cuts. (Photo by Stuart C. Wilson/Getty Images) (credit:Stuart C. Wilson via Getty Images)

Summer Budget 2015(25 of25)

Protesters against the budget and the government's public spending cuts demonstrate outside the Houses of Parliament in London today. (credit:Stefan Rousseau/PA Wire)

The Budget will also result in £17bn in departmental cuts and job losses in Whitehall. Mark Serwotka, the general secretary of the public and Commercial Services union which represents civil servants said: "From delays at the Passport Office to the scrabble to plug gaps on HMRC phone lines, Tory cuts have hit public services we all rely on, and led to the deeply unpopular privatisation plan at the National Gallery.

"More politically-motivated cuts on this scale would devastate services and leave them vulnerable to companies looking to run them for private profit rather than public good."

Osborne used his Budget to introduce a surprise rise in the "living wage", dramatically declaring that "Britain deserves a pay rise".

Hailing a new "higher wage, lower tax, lower welfare" Britain, the Chancellor said from next April everyone over 25 would be entitled to £7.20 an hour - and the figure would rise to £9 by 2020.

Some six million people will see their pay increase as a result - and those currently earning the minimum wage of £6.50 an hour will be £5,000 better off by 2020, he claimed.

Osborne said he was following the Conservative tradition as the party that brought in protections for mill workers during the industrial revolution.

"Taken together with all the welfare savings and the tax cuts in this Budget, it means that a typical family where someone is working full-time on the minimum wage will be better off," Osborne told MPs.

But acting Labour leader Harriet Harman responded by claiming the Budget was "making working people worse off" by cutting tax credits for the low paid and grants for students from poorer backgrounds.

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