Pay Cap: It Is Over Now

The government had a late night and will be breathing a bleary eyed sigh of relief today after it managed to drive the second reading of its withdrawal bill through the Commons. It may prove a false dawn because many of its own backbenchers  are determined to curb the executive powers built in to this badly drafted piece of legislation and will do so during the committee stages, supported by all the opposition parties.

But while all eyes are on the Brexit drama many other problems are building up, among them the collapse of the consensus which has held together the 1% pay cap on public sector incomes. Today it was announced that the police and prison officers are to receive marginally better treatment. That is good news but with a further rise in the rate of inflation also announced today, it is going to become politically impossible to continue with a ridiculous policy for so long.

Like austerity, pay curbs and freezes are all well and good for short periods of crisis, but they cannot become the norm. They hit hardest those least able to bear the burden, yet upon whom society utterly depends. We could manage without footballers if we had to, but not without nurses, teachers and other critical public servants. Moreover if their incomes continuously lose purchasing power, the economy suffers and productivity falls.

Time for a re-think at the Treasury. Thinking has never been that institution’s strongest point. But it is never too late to change.