Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

A public sector pay freeze is completely fair

A public sector pay freeze is completely fair

They’ve only received a fraction of their old salaries. Many have missed out on months of work. And their pension contributions and holidays have been completely scrapped. So it is perhaps understandable that teachers, town planners and tax officials are feeling a little aggrieved. Except, er, no, sorry I made a mistake there.
That was a description of what happened to the self-employed over the last eight months, not the average public sector worker.

Instead, it now looks likely that the government will impose a pay freeze on everyone who works for the government this year, and possibly next as well. The 5.5 million affected will reportedly include the police, armed forces, teachers and civil servants. Predictably, the unions are up in arms, as are the Labour Party, and we will be hearing a lot in the coming days about the sacrifices made by ‘frontline workers’.

But the truth is, the public sector has already been largely insulated from the economic impact of this crisis, and there is no reason it should not share some of the burden of getting out of it.

Whether Rishi Sunak, the Chancellor, goes ahead with a public sector pay freeze remains to be seen. When he, or more specifically the guy next door, is faced with a choice between some bad headlines and writing a big cheque he usually ends up handing over whatever amount of money is needed to fix the problem. But, in reality, a pay freeze is the right decision. Why? For two reasons.

First, the public sector has largely been insulated from the economic impact of the Covid-19 crisis. Everyone has been paid in full. Pensions and holidays have been protected. No redundancies have been made. True, some people have been working harder – in parts of the NHS most obviously – but others have had very little to do while the country ground to a halt.

Compare that to the private sector. Furloughs have to some degree protected employees – although many of them have only been receiving 80 per cent of their old salaries and have had to reckon with the grim reality that their company may make them redundant. But entrepreneurs and small businesses have been badly hit, with many taking on huge debts as they struggle to keep closed businesses alive, and face big bills for coping with capricious, fast-changing rules about whether they can open and what protections they need to put in place.

And the self-employed, almost as big a slice of the workforce as the public sector, have been shamefully treated, with a ramshackle rescue package that has plunged many of them into deep financial trouble.

Next, it might not be an urgent priority in the middle of the epidemic, but sooner or later we are going to have to pay for this crisis. We can’t carry on borrowing 20 per cent of GDP indefinitely.

The harsh truth is that as a country, along with most others, we are 10 per cent poorer than we were a year ago. At some point that will have to be reflected in incomes and living standards. The private sector, as always, will take most of the hit. But the burden should be shared by everyone. In truth, a pay freeze is completely fair – even if most public sector workers will struggle to get that.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
×