Pre-Budget Report must freeze public sector pay bill, employers’ groups warn

The Pre-Budget Report must outline a freeze on the 2010 public sector wage bill, tackle “unaffordable” state pensions, and ensure support is ramped up to help the young and over-50s find work, employers’ groups have demanded.

John Philpott, chief economist at the Chartered Institute of Personnel and Development, has urged the government to introduce a jobs guarantee scheme for older workers, similar to that launched for 18- to 24-year-olds in response to the recession. He also called for a freeze on the public sector pay bill, and warned unions that any demand for a pay rise would only lead to job cuts.

Meanwhile, the CBI called on the government to reform the public sector by introducing new technology and “tackling unaffordable pensions and pay head on”.

The report is due tomorrow (Wednesday) at 12:30pm. Follow our live blog coverage.

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