Written question asked by Wendy Morton (Conservative) on Friday, 7 March 2025, in the House of Commons. It was due for an answer on Tuesday, 11 March 2025. It was answered by Darren Jones (Labour) on Friday, 14 March 2025 on behalf of the Treasury.

Public Sector: Pay

Question: To ask the Chancellor of the Exchequer, what steps she is taking to help mitigate the impact of public sector pay settlements for 2025 on inflation.

Answer: For 2025-26, public sector pay awards for most frontline sector workforces are subject to the ongoing Pay Review Body (PRB) process. The majority of PRBs are required, per their terms of reference, to consider the government’s inflation target when forming their recommendations. The Chancellor has also been clear that departmental settlements for 2025-26 and beyond will need to fund these public sector pay awards, given that additional borrowing to fund pay awards could increase inflationary pressures.

Secondary information