'No extra money for pay rises for NHS or teachers'

PUBLIC sector budgets face a further squeeze if pay rises for nurses and teachers exceed the Government's plans as it ruled out additional funding for higher wages.

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Pay review bodies are reportedly recommending increases of as much as 4% for teachers and 3% for NHS workers, but the Government has only budgeted for a 2.8% rise for public sector workers.

Sir Keir Starmer said no decisions had been made on the recommendations, saying “we are not at that stage of the process”.

But Downing Street was clear on Monday that the Government would not be providing any extra funding for increases above 2.8%.

The Prime Minister's official spokesman said: “There'll be no additional funding for pay if recommended awards exceed what departments can afford.”