George Osborne unveils two-year public sector pay freeze in Emergency Budget

Public sector workers earning more than £21,000 face a two-year pay freeze, the chancellor said today as he outlined a strategy to eliminate current structural deficit by 2015/2016.

A stern-faced George Osborne told the House of Commons that his Emergency Budget is “tough, but it is also fair”.

He added that the 1.7 million public sector workers earning less than £21,000 will get a £250 pay rise this year and next year.

According to the chancellor, in order to prevent a “catastrophic collapse” in economic confidence, the public sector will see average real term budget cuts of 25 per cent over four years, except for in health and international aid.

A further spending review of education and other government departments will be announced on October 20. 

Harriet Harman, the interim leader for the Labour Party, said the Budget was full of the “same old Tory policies”.

“You do not get borrowing down by pulling the plug on support for businesses”, said Ms Harman.

There were protests in London yesterday in response to further, higher and adult education cuts already affecting the sector. Staff and students at 100 colleges and universities called on the government to prove education will be at the heart of Britain’s economic recovery.

A coalition of unions, including the University and College Union (UCU) and the National Union of Students (NUS), warn that thousands of jobs have already been axed and many more are at risk.

UCU general secretary Sally Hunt said: “You cannot make cuts without serious consequences. Where will the next generation of doctors, nurses, engineers and social workers come from if not universities?”

The protests included a meeting at Parliament to find ways of protecting educational provision.

A spokesman for the Department for Business, Innovation and Skills said: “Times are very tough and so it is not possible to exclude higher education and further education from the need for public expenditure savings, but the government is committed to protecting front-line services for students and learners.”

Jason Rainbow