Unions Warn of Action Over 2.8% Pay Rise

The UK government, led by Chancellor Rachel Reeves, has proposed a 2.8% pay rise for public sector workers, including teachers and NHS nurses, which unions have labeled 'deeply offensive'. This proposed increase is marginally above the forecasted inflation rates of 2.5% and 2.6% for the next two years but represents a significant reduction from previous pay awards. Unions, including the British Medical Association and the National Education Union, have signaled potential industrial action due to dissatisfaction with the offer. Departments are required to fund these pay raises from their existing budgets, raising concerns about service levels and the possibility of cuts. The proposal has sparked criticism that it fails to adequately address the financial challenges faced by public sector workers since 2010. The situation has put the government on a collision course with unions as they prepare for a multi-year spending review set to be published in 2025.