Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • 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
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • 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
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Latest NewsPublic sectorPay & benefitsPay settlements

CIPD: Public sector workers enjoy post-budget pay boost

by Jo Faragher 11 Nov 2024
by Jo Faragher 11 Nov 2024 Public sector pay rises will surpass those in the private sector for the next quarter, and likely the next year
Shutterstock
Public sector pay rises will surpass those in the private sector for the next quarter, and likely the next year
Shutterstock

Public sector pay awards have overtaken private sector rises for the first time since Autumn 2020, according to the CIPD.

Its latest Labour Market Outlook showed that the public sector has gone from the sector with the lowest median pay awards (2.5%) to the highest (4%) in the course of just three months.

The next quarter will see even higher awards in the public sector of 5%, the CIPD said.

In contrast, private sector awards are likely to be 3% over the next three months, and for the 12-month period.

Public sector pay boost

Top 10 HR questions October 2024: National living wage 

Wages to rise at above-inflation rates, report finds 

The CIPD described this as a post-election “bounce back” for the public sector, which is also reflected in recruitment confidence.

The public sector net employment balance, which measures employers’ expectations of increasing staff levels in the next three months, has risen from -1 to +6.

The overall net employment balance, meanwhile, edged up from +18 to +21.

James Cockett, senior labour market economist at the CIPD, said the rise was a “welcome boost” to public sector employers and workers.

“This should help support the NHS and the delivery of other key public services in the shorter-term,” he said.

“However, improvements to people management capability and technology adoption will be needed to raise efficiency in the public sector to respond to rising demands on services and spending constraints over the longer-term.”

Private sector pay awards, in contrast, are likely to face “downward pressure” following the Budget announcements of increases to employers’ national insurance contributions and the national minimum wage.

“These increased business costs are likely to act as a barrier to growth and could lead to employers offering lower pay rises, being more cautious about investing in workers’ skills or taking on new staff,” he added.

“Raising productivity will be key. It’s crucial the government sets how it is planning to work with employers to improve productivity, wages and living standards across the economy through its forthcoming industrial strategy and through changes to key areas of policy such as skills, innovation and business support.”

Reflecting public sector confidence, the net employment score was highest in care, social work and other healthcare roles, at +47, followed by construction at +43.

Just over a third of employers in the Outlook reported hard-to-fill vacancies, with 42% in the public sector and 34% in the private sector.

The CIPD also looked at employers’ plans to hire from disadvantaged or under-represented groups. One in five (21%) of smaller employers said they were not planning to or unlikely to over the next three years, compared to large private sector or public sector employers.

Only 13% of small businesses in the private sector plan to hire people with a disability or long-term health condition in the next three years compared to 42% of larger private sector employers and 43% of public sector employers, the CIPD found.

Ben Willmott, head of public policy at the CIPD said the Budget and Labour’s Plan to Make Work Pay would have a “significant impact on employers’ growth and hiring plans”, which could risk undermining efforts to improve labour market participation.

“Our data shows it will be particularly important for the government to consider how to provide enhanced support to SMEs, many of which are already hesitant about hiring people from disadvantaged groups,” he added.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

 

HR roles in the local and national government on Personnel Today


Browse more HR roles in the local and national government

Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

previous post
Employment rights reforms fail to address workplace bullying
next post
Trial to study post-stroke rehabilitation therapy

You may also like

Pay awards in real terms could fall for...

21 May 2025

Ryanair demands flight attendants pay back salary increase

21 May 2025

NHS Scotland staff accept two-year 8.2% pay deal

16 May 2025

Nurses threaten strikes if pay demands not met

12 May 2025

Private sector median pay increases remain at 3.5%

6 May 2025

Public sector staff could be in line for...

28 Apr 2025

Confidence returning to jobs market, data shows

28 Apr 2025

What will reward look like in 2035?

28 Apr 2025

NI increase has not caused ‘knee-jerk reaction’ in...

23 Apr 2025

Scottish Water workers strike in dispute over pay

22 Apr 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...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 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • 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
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+