Pay freeze warning for public-sector workers

Pay should be frozen for all six million public-sector workers as the government looks at radical action to trim costs, according to the head of the Audit Commission.

Steve Bundred, chief executive of the public spending watchdog, said that “severe pay restraint” would be relatively “pain-free” if inflation runs at 2 or 3 per cent. He called on politicians to be more honest about the financial challenges facing the country and criticised both of the main political parties for refusing to talk about restricting pay in education and health.