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Maintaining restraint on public sector pay.
But public sector pay is highly politicised.
Private sector pay is down almost 10%.
Public sector pay deals are well contained.
* Automatic annual rises in public sector pay grades will end.
"This includes savings from further restraint on public sector pay.
Similar(9)
Public-sector pay has been frozen.
Public-sector pay rose by more than the target.
When I do that the differential becomes negative: public-sector pay is below private-sector pay, not above it.
Public-sector pay acts as an automatic stabiliser as the economy slows, declining less in recessions than private-sector pay and is especially important in high-unemployment areas.
Tricky issues such as a public-sector pay round and planned tax cuts loom.
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