Tuesday, 15 January 2008

Teachers get above inflation (CPI) three year pay deal.

Teachers are to receive an above inflation three year pay deal. 2.45% in the first year and 2.3% for the following two years. How can this have happened? Gordon Brown has been saying that he would not risk the economy by awarding this level of pay rise in the public sector. Many teachers are not at all happy with the pay deal, but I'm damned sure the police federation are spitting tacks over the news seeing as their members received 1.9%, despite arbitration setting the level at 2.5%.

Of course the fact that the government are using the CPI (2.1%) as a measure of inflation means that everyone receiving anything bellow 4.3% (RPI) is in reality worse off this year than last year. RPI takes into account rent and mortgages, the CPI does not. I assume that all public sector workers live in some kind of dwelling which they have to pay for. The government however, believe the RPI is suitable for working out how much MP's allowances should be increased by.

One rule for them, and one rule for us little people.

2 comments:

Letters From A Tory said...

RPI is the only measure of inflation that is worth listening to when it comes to pay rises for the public sector - people still need somewhere to live.

Daily Referendum said...

LFAT,

Not using the RPI is going to see wages continue to fall as the true cost of living rises.