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Latest NewsEconomics, government & businessInflationPay settlements

Public sector fat-cats get the cream as pay outstrips inflation and private sector peers

by Greg Pitcher 1 Nov 2006
by Greg Pitcher 1 Nov 2006

Top earners in the public sector are now better paid than their peers in manufacturing, according to research out this week.

A survey by the Institute of Directors found that senior executives in government-funded organisations enjoyed a 6.5% pay rise this year.

Public sector bosses now earn an average of £85,000 a year, putting them behind only to City executives in the pay stakes.

Unions this week slammed the figures, saying they showed evidence of a fat-cat culture.

Transport and General Workers’ Union general secretary Tony Woodley said. “The money going to these public sector fat-cats is a slap in the face for staff in the trenches.

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“This blows to smithereens the chancellor’s public sector pay target.”

Institute of Directors director general Miles Templeman said: “We want good people running our public services, but people should be paid on performance and, broadly speaking, the public sector is not performing.”

Greg Pitcher

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