Published: September 2012

The Chancellor of the Exchequer announced in the Autumn Statement of 2011 that the public sectorpay freeze would come to an end in 2012/13, with public sector pay awards of 1 per cent planned overthe next 2 years thereafter. Emphasis was also placed on making public sector pay more responsive tolocal labour market conditions. Evidence from the Institute of Fiscal Studies (IFS) was quoted whichrevealed a public/private sector pay premium of around 8 per cent and which found substantialdifferences across the country in the region pay premium.

Keywords
Private Sector, Pay
The Chancellor of the Exchequer announced in the Autumn Statement of 2011 that the public sectorpay freeze would come to an end in 2012/13, with public sector pay awards of 1 per cent planned overthe next 2 years thereafter. Emphasis was also placed on making public sector pay more responsive tolocal labour market conditions. Evidence from the Institute of Fiscal Studies (IFS) was quoted whichrevealed a public/private sector pay premium of around 8 per cent and which found substantialdifferences across the country in the region pay premium.