Labour Market

What trade unions don’t tell you about public sector pay


In the Media

Prof. Len Shackleton writes in The Times

In the Media

Annabel Denham writes in The Spectator

IEA Director of Communications, Annabel Denham has written in The Spectator arguing that pensions need to be considered when discussing levels of public sector pay.

Annabel wrote:

“The problem is not the total package offered to public sector workers. Rather, it is the inflexibility of the package, how it is divided up between wages and pensions, and how it has allowed public sector workers to feel short-changed. In turn they are drawn to demand pay increases without any commensurate improvements in productivity.

“As the IFS has underscored, generous defined benefit occupational pensions, virtually extinct in the private sector, remain ubiquitous in the public sector. The average teacher earned over £42,000 in 2021, but they were also benefitting from employer pension contributions of nearly 24 per cent, worth an additional £10,000 on average.”

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