§ Mr. David ShawTo ask the Chancellor of the Exchequer what would be the effect on the total amount spent on public sector pay in 1994–95 of public sector pay rises in 1994 of(a) 2 per cent., (b) 3 per cent., (c) 4 per cent. and (d) the latest rate of inflation which will be used for the upgrading of pensions and benefits.
§ Mr. PortilloEstimates of expenditure on pay across the public sector as a whole are difficult to make due to the disparate nature of the pay bargaining arrangements applying to the groups involved. However, it is estimated that each one per cent. change in public sector pay in 1994–95 would cost/save about £¾ billion.
Assumed public sector pay rise in 1994 Estimated cost in 1994–95 £ billion (a) 2 per cent. 1.5 (b) 3 per cent. 2.25 (c) 4 per cent. 3.00 (d) Inflation rate used to upgrade pensions and benefits1 1.5 1 The March 1993 Financial Statement and Budget Report gave an assumption of 2 per cent, for the increase in the RPI over the year to September 1993.