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GMB reveals Public Sector pay pinch will cost West Midland s economy £1.30 billion by 2020

Monday, May 15, 2017

 

GMB reveals Public Sector pay pinch will cost West Midland s economy £1.30 billion by 2020.

 ‘Cruel’ cap on public servants’ pay completely self-defeating, says union

New GMB analysis reveals the Governments’ public sector pay pinch will cost the West Midlands economy a staggering £1.3 billion in lost wages by 2020.

Currently, public sector workers are subjected to a 1% pay cap – meaning that their earnings are kept below inflation.

Between 2017 and 2020, each worker will be an average of £3,300 out of pocket.

With more than 430,000 public sector workers in the West Midlands, that amounts to just over £1.33 billion less spent in the economy.

Over the full decade from 2010 to 2020, a full-time staff nurse will have lost out on over £18,000 in real terms. [2]

A recent GMB report found that the Government’s public sector pay policy was even more prolonged and severe than those pursued by Margaret Thatcher and John Major.

75% of voters support ending the 1% pay cap, including 69% of Conservative voters.

Joe Morgan, GMB Regional Secretary, said:

“These figures show the public sector pay squeeze is not only cruel and unnecessary – it’s completely self-defeating.

“Each and every public sector worker in the West Midlands – from paramedics and teaching assistants to cleaners and council officers - will be more than £3,000 out of pocket if this cap is allowed to continue.

“That’s money they need for food, bills and travel from them and their families.

“But it’s also pinching £1.3 billion from the West Midlands economy, suppressing growth, and jobs.

“If Theresa May is serious about helping ordinary working families then she must give our army of public sector workers the long overdue fair wage they need and deserve.”

Contact: GMB press office on 07958 156846 or at press.office@gmb.org.uk

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