£2bn pay rise for public sector workers

The Treasury is set to reveal the biggest public sector pay rise in six years as one of Theresa May's final acts as Prime Minister.

The Times has reported that soldiers are set to get a 2.9 per cent rise while teachers and other school staff will get 2.75 per cent, police officers, dentists and consultants 2.5 per cent and senior civil servants two per cent. The pledge does not cover nurses or other junior civil servants.

The pay rises, above the level of inflation, will likely be funded from existing budgets.

Public sector pay was frozen for two years in 2010, except for those earning less than £21,000 a year, after which the rises were capped at one per cent, below the rate of inflation.