Pay, pensions & pressures on public services

Higher inflation is squeezing household incomes and weighing on the economic recovery. But higher inflation also squeezes public services, whose budgets are fixed in cash terms and are not automatically adjusted in the face of higher cost pressures. Higher than expected public sector pay awards, in particular, are causing budgetary challenges in the NHS, schools, local government, and beyond.

In this event, IFS researchers examined recent public sector pay awards and how they compare to inflation, what was budgeted for, and what is happening in the private sector. They then considered what this means for recruitment and retention challenges in the public sector, and what policy might do in response. Finally, they zoomed in to focus on the particular challenges faced by schools.

Presentations were given by

• Bee Boileau, IFS Research Economist
• Laurence O'Brien, IFS Research Economist
• Luke Sibieta, IFS Research Fellow.

The event was chaired by Ben Zaranko, IFS Senior Research Economist.

This event was part of the ESRC Festival of Social Science.

This event was also funded by the Nuffield Foundation and Citi as part of the 2022 IFS Green Budget.