Inflation busting pay rise?


War Hero
Not when you compare it to the RPI though!

Better than a kick in the teeth as they say!

Brown announces below-inflation pay rises
By Ben Hall, Political Correspondent

Published: March 1 2007 12:39 | Last updated: March 1 2007 12:39

More than 1m public sector workers are to receive average pay increases of 1.9 per cent this year, well below consumer price inflation which stands at 2.7 per cent, Gordon Brown told the Commons on Thursday.

Pay rises for doctors, nurses, prisons officers and senior civil servants are to be staged, with a 1.7 per cent increase from April and a 2.2 per cent increase from November, producing an average of 1.9 per cent for the year.

Members of the armed forces, except senior officers, will receive inflation-busting rises of 3.3 per cent for the year.

Mr Brown has repeatedly called for public sector pay increases to fall in line with the Bank of England’s 2 per cent inflation target.

His decision to stage the increases for public sector workers comes at a politically sensitive time, given the recent surge in inflation, now slowing, and the role of the public service unions in a possible Labour leadership election this year.

Government departments will give further detail of the rises for their staff later on Thursday.

The pay review bodies that recommend rises for public sector workers are understood to have proposed increases of less than 2.7 per cent but more than 2 per cent.

The staging of the increases underscores the chancellor’s determination to prevent a wage-price spiral and to make life easier for the Bank’s monetary policy committee, which sets interest rates.

Copyright The Financial Times Limited 2007
I don't think that is the case it says "The lowest army ranks of private and lance corporal and their equivalents in the RAF and Royal Navy will get a bigger increase of 3.3%." Lance Corporal is nor the Equivalent of Leading Hand and so they may well be excluded from the 0.3 raise.


War Hero
Well chief................
It is still spooky that this years pay rise should be so similar to that revealed in February 2006!
I joined to be a Foo..............

ended up as a WE...............

Wanted to be a skimmer................

ended up as a sludgemariner.............

Nothing suprises me anymore :lol:
I'd have been happy with a 1% pay rise! I'm getting a pay rise of £20.25 (before tax!!!) a month!!! Stay in the RN... some parts of the public sector pay very poorly!
Re: BREAKING NEWS...Armed Forces to get at least 9.2% pay ri

I'm with Virgin Media (was Telewest) so thanks a bunch, no longer get ANY sky channels :(


War Hero
I expect there is some spin on this somewhere but I must say that this looks good, especially for the JR's, at least on the surface subject to increases in MQ, food and accom etc:

Lowest rank get 9.2% in Forces' biggest pay rise for four years
1 Mar 07
13,000 of the lowest paid servicemen and women will see their pay rise by 9.2% - over £100 per month - under the Armed Forces's Pay Review Body Award 2007, announced today, Thursday 1 March 2007.

It is the biggest pay rise for four years and the highest of the public sector pay rises announced today.

A further 6,000 on the next-lowest pay level will get 6.2%. There is good news too for all other ranks and officers, regulars and reserves, who will receive a 3.3% increase. This increase will take effect from 1 April 2007.

The most senior officers (Major-Generals and equivalents and above) will receive a 2% increase, as recommended by the independent review body and in line with overall increases in public sector pay.

Today’s decision comes on top of the new tax free operational bonus introduced in October – which gave special recognition to those serving in Iraq and Afghanistan and the Balkans, and which has so far been paid to around 31,000 people, totalling some £35 million.

In total, around £350 million more per year will be going into pay and allowances: £280m more in pay and £67m more for the operational bonus each year.

Des Browne, Secretary of State for Defence, said:

"I am delighted to be able to announce this significant pay rise for our Armed Forces, which is thoroughly deserved after what has been a challenging year. It reflects my ongoing commitment to make sure they get the support and recognition they deserve for the tremendous work they do.

"This decision comes on top of the new tax free bonus introduced in October – which gave special recognition to those on operations. Today’s decision recognises the superb work done by all our Armed Forces, wherever they serve. I am particularly pleased to confirm that our most junior servicemen and women will now get an extra £100 per month."

Air Chief Marshal Sir Jock Stirrup, Chief of Defence Staff, added:

"This pay increase is very good news for the Armed Forces. It recognises the key contribution our people and their families make to the nation, as well as the particularly onerous operational challenges they are having to face at the moment.

"It reflects how highly – rightly – they are valued by the Government and the country as a whole."

Today’s decision recognises the superb work done by all our Armed Forces, wherever they serve.
Des Browne, Secretary of State for Defence
Today’s announcement also covered further enhancements for personnel on operations. The Longer Separation Allowance will also increase by 3.3%, and the 100 day initial qualifying period is being removed, meaning troops will be entitled to the daily rate after just ten days separated service.

In total, as a result of the increases announced today and in the autumn, a Private soldier deploying on their first operation will now receive:

basic pay between £15,677 - £26,664
£2,240 tax free Operational Allowance over a 6 month tour
at least a further thousand pounds in separation allowance over a six month tour
Recruitment is improving, better than this time last year, but there are specific challenges in retaining our experienced people, and in response we are introducing new Financial Retention Incentives payable to Royal Marines, Infantry and Aircrew, providing an estimated extra £17m to approximately 2,300 additional personnel.

The Armed Forces' Pay Review Body (AFPRB) is an independent group comprising eight members and the Chairman, Professor David Greenaway. It reports annually on levels of pay for the Armed Forces.

The AFPRB bases its recommendations on broad comparability with similarly weighted civilian jobs. The Review Body gathers evidence from a wide variety of sources and takes account of a number of factors including Government evidence.

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