Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Economics, government & businessLatest News

Public sector pay and welfare budgets could take the biggest hits, prime minister warns

by Personnel Today 7 Jun 2010
by Personnel Today 7 Jun 2010

Public sector pay and welfare could bear the brunt of budget cuts as the UK faces years of “pain”, the prime minister has warned.

David Cameron said the economy is in a far worse state than previously thought.

Measures being considered to help control the £156bn deficit are now thought to include benefit freezes and below-inflation pay rises for state employees following next year’s planned freeze.

Cameron is also expected to outline today that the cuts will mean the UK’s “whole way of life” will be disrupted for years and will effect everyone.

On Tuesday, chancellor George Osborne will outline a framework for an autumn spending review that will introduce department-by-department cost savings. The most radical plan will involve importing a Canadian-style ‘star chamber’, in which members of the Cabinet will be forced to justify their budgets in front of a group of ministerial and civil service heavyweights.

Speaking to the Sunday Times, Cameron warned there would be no “trampoline recovery” of the economy and there was a “serious problem” with forecasts made by Labour of a 3% growth next year.

He said: “There is a huge amount of debt that has got to be dealt with. Crossing our fingers, waiting for growth and hoping it will go away is simply not an answer.

“You have to address the massive welfare bills. You have to address public sector pay bills. You have to address the size of the bureaucracy that has built up over the past decade.

“Otherwise you will have to make reductions across the board which you don’t want to do. We need to address the areas where we have been living beyond our means.”

It is thought freezing all benefits for 12 months next year could be on the table and would raise £4.1bn.

All public sector workers earning more than £18,000 a year already face a pay freeze next year, but it is understood that curbs in wage rises beyond 2011 are likely to be unveiled in the Budget on 22 June.

Meanwhile, deputy prime minister Nick Clegg has promised the need for savings will not mean a return to the savage cuts of the 1980s.

He told the Observer: “It is important people understand that fiscal retrenchment does not mean a repeat of the 1980s. We’re going to do this differently.”

Avatar
Personnel Today

previous post
Council’s collaborate to launch new Jobs Portals
next post
Unskilled European worker restrictions are needed, says Ed Balls

You may also like

Royal Mail strike: Union urges it to ‘get...

10 Aug 2022

Supporting non-binary and transgender staff: four key steps...

10 Aug 2022

Personnel Today Awards 2022 shortlist: Health and Wellbeing...

10 Aug 2022

Train conductor unfairly dismissed after ‘black privilege’ comment

10 Aug 2022

Nurses set to vote on strike over pay

9 Aug 2022

Former MP’s aide unfairly dismissed after whistleblowing

9 Aug 2022

Private spaces for focused work key to office...

9 Aug 2022

Top earners’ pay soars by 10% while lowest-paid...

8 Aug 2022

National Payroll Week: A compliance guide for SMEs...

8 Aug 2022

‘Pushy’ lawyer awarded £152k for sex discrimination

8 Aug 2022
  • 6 reasons why work-based learning is better than traditional training PROMOTED | A recent Fortune/Deloitte survey found that 71% of CEOs are anticipating that this year’s biggest business disrupter...Read more
  • Strengthening Scotland’s public services through virtual recruiting PROMOTED | This website is Scotland's go-to place for job seekers looking to apply for roles in public services...Read more
  • What’s next for L&D? Enter Alchemist… PROMOTED | It’s time to turn off the tedious and get ready for interactive and immersive learning experiences...Read more
  • Simple mistakes are blighting the onboarding experience PROMOTED | The onboarding of new hires is a company’s best chance...Read more
  • Preventing Burnout: How can HR help key workers get the right help? PROMOTED | Workplace wellbeing may seem a distant memory...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+