The government has signalled its determination to rein in public spending by limiting public pay awards to 2% in the first six months of 1998-9.

3.8% increase for teachers

Although average increases recommended for education, health, civil servants and the armed forces average 3.9%, they are to be phased in, with the first award in April, and the balance in December.

The decision sparked an angry response from TUC General Secretary John Monks. He claimed the phased increases would "demoralise millions of key public sector workers who will feel that their skills and contributions are not properly valued".

That view was echoed by Karlene Davis, general secretary of the Royal College of Midwives. She said: "The hope that the new government would bring justice and fairness to public sector pay has turned to despair."

Prime Minister Tony Blair revealed the pay award figures in a written Commons answer.

He said the government would accept the recommendations by the various review boards "in full."

"However, to ensure that departments can accommodate the costs without damaging frontline services ... we have decided that it is essential to stage their introduction."

Soldiers will get at least 3.75%

Conservative Shadow Chief Secretary to the Treasury David Heathcoat-Amory accused the government of hypocrisy over public sector pay.

And he said Labour's difficulties were entirely of their own making.

Teachers, nurses and other public servants feared that even generous pay awards would be swallowed up by Labour's high taxes and mortgage rates, he said.

Mr Blair declared the government had twin objectives - "to run a stable economy in which inflation is low and there is long-term prosperity, and to reward the effort and dedication of those working in many of our most important public services."

Full implementation would be achieved by December, after 2% in April, the Prime Minister said.

• Doctors and dentists should receive 4.2% with GPs recommended to get 5.2%.
• Nurses, midwives, health visitors and allied professions should receive 3.8%, the pay review body says.
• Teachers should receive 3.8%.
• Senior civil servants' pay-ranges should be increased by 3.5% with individual salaries based on performance.
• The Armed Forces Review Body recommended 3.75% in basic military salaries with 4.2% for Private Classes I, II and III and Lance Corporals.
• Senior military officers should be paid increases "determined according to job weight" with no specific recommendation.
• Judges should be paid 3.5% more.

Back to top | BBC News Home | BBC Homepage	©