Think-tank calls for end to national pay bargaining

Press Association
Coins and ten pound note
Coins and ten pound note

Scrapping national pay bargaining in the public sector would save more than £6 billion a year that should be used to create hundreds of thousands of new jobs, an influential think-tank has urged.

Nationally-set pay bands mean that the average public sector worker is paid 7% more than their private sector counterparts - rising to almost 14% when pensions are taken into account - according to a report published by the right-of-centre Policy Exchange.