Jamie Whyte appears on BBC Radio 2's Jeremy Vine show

Jamie Whyte, Research Director at the Institute of Economic Affairs has appeared on BBC Radio 2’s Jeremy Vine show to discuss the lift on the public sector pay cap and unlawful strikes.

During the interview Jamie argues that the problem with the reasoning of matching public sector pay with inflation is that it doesn’t tell what you should pay people. Keeping pace with inflation assumes that before you started matching the pay, wages were at the right level in the first place. In the public sector there is no way of answering the question of how much workers should be paid because there is no commercial demand for the labour in question. In this case the employer is in a financial mess and so have rightly tried to cut down costs as a response. The government should determine a budget and then pay should actually be localised to managers.

Listen to the full interview here. Jamie’s segment begins at 10:27