The government has accepted the recommendations of pay review bodies for public sector pay awards for 2011-12 in line with the announcement made in the Budget in June 2010.
Employees covered by the bodies who earn £21,000 or less will receive a pay increase of £250 for 2011-12.
Those earning over £21,000 will have their pay frozen for two years. Overall, the pay freeze will save £3.3 billion a year by 2014-15.
Taking into account evidence from the government and other parties, pay review bodies for teachers, prison officers, the armed forces and the NHS (excluding doctors and dentists) made the recommendations.
Pay review bodies for senior groups – judges, the senior civil service, the senior military, NHS senior managers and doctors and dentists – did not make recommendations because their workforces earn above £21,000 and are subject to a pay freeze.
The announcement does not include police and local government workforces, who are not covered by pay review bodies. Local government workers’ pay remains a matter for local authorities and the National Joint Council.
Danny Alexander, the chief secretary to the Treasury, said: “By taking tough decisions on a pay freeze, we have been able to provide a fair increase for the low paid. I am pleased the pay review bodies have recommended a £250 uplift.”
Read more articles on public sector pay