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Teachers

Pay Gap Persists in Public and Private Sectors Amid Record Inflation

Strategic Insights

— 2 min read

Nurses and teachers are planning to intensify their strike actions in the face of a widening pay gap between the public and private sectors. According to the Office for National Statistics, private sector pay rose by 7.2% in the three months to November, while the public sector saw a meager 3.3% increase. With inflation at 10.7% in the same period, the differential in pay is exacerbating the struggle of public sector workers to pay essential bills, with many turning to food banks for support.

Key Takeaways:

  • The pay gap between the public and private sectors remains significant, with private sector pay rising by 7.2% and public sector pay by 3.3% in the three months to November.
  • The widening pay gap is making it increasingly difficult for public sector workers, such as nurses and teachers, to afford essential bills and is contributing to a growing reliance on food banks.
  • The 7.6% average increase in pay for private sector workers in finance and business services highlights significant disparities within the private sector.
  • Manufacturing and construction saw pay growth fall short of inflation, at 5.4% and 6.3% respectively.
  • The emergence of a 21st-century version of the Victorian working poor in the public sector is a direct consequence of austerity measures implemented by George Osborne and David Cameron.
  • Citizens Advice reports that 3.2 million people ran out of credit on their prepayment gas and electricity meters last year due to lack of funds.
  • The 21st-century version of the Victorian working poor is having long-term consequences for families and their ability to cope with financial shocks.

Statistics:

  • Private sector pay increased by 7.2% in the three months to November, while public sector pay rose by 3.3%.
  • The CPI rose at 10.7% in the same period.
  • Manufacturing and construction saw pay growth fall short of inflation, at 5.4% and 6.3% respectively.
  • 3.2 million people ran out of credit on their prepayment gas and electricity meters last year due to lack of funds.
  • The average age of the teaching profession will be barely above the age of the children they teach if turnover among teaching staff continues at current levels.

Sources:

  • Phillip Inman, "Strike-planning nurses and teachers will be intensified determined this week when they see how the pay gap persists in the latest official figures", The Guardian, (no date provided in the source)
  • Office for National Statistics, Private Sector Pay Data, (no date provided in the source)
  • Citizens Advice, Food bank use continues to rise as economic pressures mount, (no date provided in the source)

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