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Public sector pay pinch to cost Yorkshire and Humber economy £1.3bn by 2020

Tuesday, 16 May 2017 07:00

The GMB union claims that analysis it has carried out reveals the Governments’ public sector pay pinch will cost the Yorkshire and Humber economy £1.3bn in lost wages by 2020.

Currently, public sector workers are subjected to a 1% pay cap – meaning that their earnings are kept below inflation.

Between 2017 and 2020, each worker will be an average of £3,300 out of pocket.

With more than 450,000 public sector workers in the region, it will amount to what the GMB believes to be just over £1.3bn less spent in the economy.

A recent GMB report claims that the Government’s public sector pay policy was even more prolonged and severe than those pursued by Margaret Thatcher and John Major.

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