Briefing 076 Bargaining – Pay – May 2016

thumbnail of b076_BargainingBrief_Pay_May2016

KEY POINTS:

  • Pay in Scotland has fallen 12% in real terms since 2011
  • If it has risen in line with OBR forecast Scotland’s economy would be £11.6bn larger.
  • That would have generated £3.6bn in extra government revenues.
  • It would have saved £240m in benefits.
  • Public sector pay has fallen by 10%, but much further behind inflation.
  • IPPR model shows that the real cost of public sector pay is only half the headline figure.
  • This should be reflected in pay bargaining and government pay policy.