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State workers are paid better than those in the private sector, report finds amid calls for 1% rise cap to be lifted

  • Social Market Foundation report shows public sector staff are paid more
  • Those in the private sector earned £9 a week less than public sector staff
  • Average is £25,002 in the public sector and £22,500 in the private sector

Another report has confirmed that public sector staff are paid more than those in the private sector.

The study, by the Social Market Foundation, comes amid calls for the cap of 1 per cent on pay rises to be lifted for all public sector staff.

The think tank found that, on average, those in the private sector earn £9 a week less than public sector staff.

On average those in the private sector earn £9 a week less than public sector staff (stock image of Parliament)

Workers from all backgrounds are £300 a year worse off than they were in 2016 thanks to rising inflation. But the effect is higher for those in the private sector.

SMF analysis of yesterday’s ONS earnings figures show that, on average, both private sector and public sector workers have seen their real earnings fall over the past twelve months.

Average gross earnings for July 2017 were £505 per week. 

Private sector workers earned £503 per week on average in July 2017, which represents a £305 fall in annual income when compared to a year ago.

In the public sector, average gross pay was £512 per week; with inflation rising, they earn £258 less than they did a year ago.

SMF chief economist Scott Corfe said: ‘After adjusting for inflation, workers are significantly worse off than they were a year ago.

‘In part this reflects the increase in the cost of living as a weak currency has pushed up the price of imported goods.

Another report has confirmed that public sector staff are paid more than those in the private sector (stock image of the House of Commons)

‘But it also reflects weak earnings growth which remains stubbornly stuck in the doldrums. Improving productivity to boost pay is absolutely critical.

‘With total pay growth lower in the private sector than the public sector in July, the government will be under more pressure to boost the pay of all workers in the economy. Lifting the public sector pay cap benefits less than a fifth of the workforce.’

At the weekend another study found that public sector workers are 11 per cent better off on average than those in the private sector.

The TaxPayers’ Alliance found that state staff also worked shorter hours and took more sick leave than those who work for companies.

Average median gross annual pay in 2016 was £25,002 in the public sector, compared to £22,500 in the private sector, the Alliance found. This is 11.1 per cent higher. 

dailymail.co.ukdailymail.co.uk - September 13 view article