Found this in the FT today -
Review backs below-inflation pay rises
By Ben Hall and Nicholas Timmins
Published: February 27 2007 22:01 | Last updated: February 27 2007 22:01
More than 1m doctors, nurses and other public sector workers face real terms pay cuts after the review bodies that recommended their salaries have proposed below-inflation pay increases.
The independent pay arbitrators that cover senior civil servants, judges, prison officers and NHS staff have recommended rises for most employees below not only the retail price index rate of 4.2 per cent but also the consumer price index, which stands at 2.7 per cent.
The recommended rises are nevertheless higher than the government had hoped and pose a challenge to Gordon Brown, the chancellor, who has called for average increases to be pegged at 2 per cent, in line with the Bank of England’s inflation target.
They are also significantly above the 1.5 per cent that Patricia Hewitt, the health secretary, has said is all that the NHS can afford for the coming year.
Only the review body covering the armed forces is understood to have recommended a rise above the CPI.
Link for full article -
http://www.ft.com/cms/s/cde23602-c6a5-11db-8f4f-000b5df10621.html