Where next for public sector pay?

Public sector pay has been in the headlines again this summer, with the government accepting the independent Pay Review Bodies' recommendations for public sector pay rises averaging 5.5% this year. At £270 billion, the government's pay bill is a huge item of public expenditure, important for delivering public services and the living standards of millions of families. But what are the prospects for public sector pay, how might it differ for different occupations, and what pressures might it place on public spending in the coming years?
At this online event, IFS researchers gave presentations on new evidence on the key trends and challenges facing public sector pay, and the issues public sector employers have recruiting, retaining, and motivating staff. These presentations drew on a new report being published on the same day as part of the IFS Green Budget, and carefully examined the entire public sector labour market, paying particularly close attention to the very different situations that different public sector occupations find themselves in.
After the IFS presentations, there was a response from Mark Franks, Director of Welfare at the Nuffield Foundation and former Chief Economist at the Office for Manpower Economics, followed by questions from the audience.