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Public sector wage cap may finally be scrapped today

Teachers, doctors, the armed forces, and other sectors who've not yet seen the cap lifted should hear some good news

Rumour has it the House of Commons will finally announce that long-awaited public sector pay rise Theresa May promised was on its way.

What it means: Pay for public sector workers has been 'capped' since 2013, meaning pay rises couldn't be higher than 1% a year.

The idea was to save government money. The problem is, they're having a tough time recruiting and retraining staff who are essentially getting a pay cut every year if you factor in the fact that prices are going up faster than their pay.

Some parts of the public sector have already seen pay rises – the NHS and police, for example – but today it's expected that others will get their fair share too. The cost will be funded by individual departments (like the Department of Education, or the Department for Health) rather than the central government fund (the Treasury).

The pay rises will be up to 3.5% – which is clearly a lot better than what they've had so far, but for many, still won't be higher than inflation (the increase in prices).


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