Millions of key workers in line for BIG wage rises after Rishi Sunak confirms end to public sector pay freeze

MILLIONS of key workers are in line for a Budget pay boost as Rishi Sunak prepares to scrap the controversial public sector salary freeze.

The Chancellor will axe the year-long freeze for more than five million public sector workers when he unveils his new spending pledges on Wednesday.

Nurses, teachers and soldiers are among those set to enjoy a wage rise for the first time in two years.

A new National Living Wage of £9.50 an hour - up from £8.91 - will also be introduced in a boost for lowest-paid Brits - meaning an extra £1,000 a year for a full-time worker in a move that will benefit around 2.5million people.

Mr Sunak said: "The economic impact and uncertainty of the virus meant we had to take the difficult decision to pause public sector pay.

“Along with our Plan for Jobs, this action helped us protect livelihoods at the height of the pandemic.

'BACK ON TRACK'

“And now, with the economy firmly back on track, it’s right that nurses, teachers and all the other public sector workers who played their part during the pandemic see their wages rise."

The public-sector pay freeze was brought in last November after Covid ravaged the economy.

Mr Sunak said he couldn't justify an increase while many private sector workers saw their pay and hours slashed.

NHS workers and public-sector workers earning less than £24,000 a year were exempt from the freeze.

Public sector average weekly earnings rose by 4.5 per cent in 2020/2, but private sector wage increases were 1.8 per cent - a third lower than before the pandemic hit, The Treasury said.

A spokesman said: "The government will be running a full pay round and the awards will be announced next year once government responds to the pay review bodies’ recommendations."

Independent Pay Review Bodies will set the pay rate for most frontline workers – including nurses, police officers, prison officers and teachers.

When he steps up to the Despatch Box tomorrow, Mr Sunak is set to confirm the government is eyeing up a rise in the national living wage to more than £10 by the next election.

Young people and apprentices will also see their wages increase as the National Minimum Wage for people aged 21-22 goes up to £9.18 an hour - and the Apprentice Rate to £4.81 an hour.

The changes will come in from next April 1.

It comes after Prime Minister Boris Johnson vowed to make Britain "a high-skills, high-wage" economy.

The PM told the Conservative Party conference in Manchester this month: “We are not going back to the same old broken model with low wages, low growth, low skills and low productivity.”

And he urged businesses to put up wages.