Britain’s public sector headcount rose to its highest stage since 2011, official figures present, as Rachel Reeves lays the groundwork to announce spending cuts subsequent week.
A complete of 6.14m individuals labored for the state in December, in keeping with the Workplace for Nationwide Statistics (ONS), because the Authorities sustained the post-pandemic surge in hiring NHS employees and administrative employees.
Public sector employment was up by 53,000 from the top of 2023 and by nicely over half one million in contrast with the eve of lockdown.
The largest will increase over the previous 12 months got here within the NHS – an additional 48,000 employees taking its headcount to a recent file excessive of two.05m – and in public administration, which accounts for 1.23m employees, probably the most since 2008.
It comes amid spiralling Authorities spending with surging borrowing and taxes at near-record ranges.
The Work and Pensions Secretary Liz Kendall this week introduced plans to chop Britain’s welfare invoice by £5bn as Ms Reeves, the Chancellor, makes an attempt to steadiness the books throughout her replace on the state of the general public funds in subsequent week’s Spring Assertion.
The rise in public sector headcount additionally provides to considerations that debt-fuelled pay rises for public sector employees threat stoking extra inflation at a time when the Financial institution of England is already battling above-target value rises.
Common common pay development held agency at 5.9pc within the three months to January, the ONS stated, as policymakers on the Financial institution put together to announce their subsequent choice on rates of interest in the present day.
They’re anticipated to go away borrowing prices on maintain at 4.5pc after saying a minimize in February.
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