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<p>To examine the real terms earnings of key workers, we focus on public sector workers
- which represent the majority of key workers.</p><p> </p><p>Public sector pay in
real terms (total pay, deflated by CPI) has grown at an annualised rate of 0.2% over
the last decade (since the three months to November 2011). The level of public sector
average weekly earnings (in real terms) is now in line with that of the private sector
in the three months to November 2021.</p><p> </p><p>The public sector has, on average,
better remuneration packages than the private sector. ONS suggested a 7% premium in
2019 (controlling for characteristics, including pensions). In 2020, the median salary
in the public sector was £3,500 higher than the private sector, this gap is most acute
amongst the lowest paid, where ONS data suggests public sector average hourly wages
are 20% higher.</p><p> </p><p>Looking ahead, pay for most frontline workforces – including
nurses, police officers, prison officers and teachers is set through an independent
Pay Review Body process. Public sector workers will see pay rises across the whole
Spending Review period (2022/23-2024/25) as the strong recovery in the economy and
labour market has allowed us to return to a normal pay setting process.</p>
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