Budget 2010: Two-year pay freeze for public sector staff

A two-year pay freeze is to be imposed on public sector workers earning more than £21,000.

The move, announced by Chancellor George Osborne in his emergency Budget speech, will not affect the lowest-paid workers who will receive a £250 pay increase in both of these two years.

He said: "Many millions of people in the private sector have in the last couple of years seen their pay frozen, their hours reduced, and their pension benefits restricted.They have accepted this because they knew the alternative in many cases was further job losses.The public sector was insulated from these pressures but now faces a similar trade off.

"I know there are many dedicated public sector workers who work very hard and did not cause this recession, but they must share the burden as we pay to clean it up."

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