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Rishi Sunak to scrap public sector pay freeze in autumn budget

pay freeze

Rishi Sunak to scrap public sector pay freeze in autumn budget

Rishi Sunak will end the public sector pay freeze for millions of workers and increase the national minimum wage in the budget on Wednesday, though economists warned the measures would not compensate for inflation rises and cuts to universal credit.

The chancellor is set to confirm that the yearlong “pause” on public sector pay, which affected 2.6 million teachers, police and civil servants during the pandemic, will be lifted as the economy recovers from the pandemic.

On Monday he also confirmed that the UK’s national living wage will rise from £8.91 to £9.50 an hour for workers aged 23 and over from April, a 6.6% increase, meaning a pay rise for millions of low-paid workers after ministers accepted the Low Pay Commission’s recommendation.

The announcements mean about 7.5 million people could see their pay rise – about 5.7 million working in the public sector and 2 million on minimum wage, though there is some crossover. Just under half of public-sector workers were affected by last year’s freeze, with exemptions for NHS workers and those earning less than £24,000.

Sunak imposed the controversial public sector pay freeze in November 2020 and it came into force in April. At the time, he said, it was unfair for millions of workers to get a rise while many of their private sector counterparts were being furloughed or losing their jobs.

But with wages in many sectors rising, and the prime minister using his party conference speech to highlight the prospects for a “high-wage economy”, that argument no longer applies.

“The economic impact and uncertainty of the virus meant we had to take the difficult decision to pause public sector pay,” Sunak said, announcing the end of the freeze. “Along with our Plan for Jobs, this action helped us protect livelihoods at the height of the pandemic. And now, with the economy firmly back on track, it’s right that nurses, teachers and all the other public-sector workers who played their part during the pandemic see their wages rise.”

The Treasury briefed that the minimum wage increase represents a hike of about £1,000 a year for a full-time worker. But calculations by Labour found that those affected by the £1,000-a-year cut in universal credit, the rise in national insurance and the freeze in the income tax personal allowance will still be £807 worse off from April.

They are also likely to feel the pinch from a rise in gas and electricity prices when the energy price cap is reviewed in the same month.

The Institute for Fiscal Studies (IFS) thinktank agreed that the minimum wage increase would not offset cuts to benefits. Tom Waters, senior research economist, said: “While this boosts earnings for full-time minimum wage workers by over £1,000 a year, those on universal credit will see their disposable income go up by just £250 because their taxes rise and benefit receipt falls as their earnings increase.

“Minimum wage workers are most heavily concentrated around the middle of the household income distribution – not the bottom – often because they live with a higher-earning partner. That means that the minimum wage is a very imperfect tool to offset cuts to benefits, which are much more targeted at the poorest households.

“Rising inflation will also blunt the real-terms value of this minimum wage hike – and of course while prices are rising now, the increase in the minimum wage won’t kick in until April.”

The two government announcements are seen by the Treasury and No 10 as putting the focus back on higher wages over government support. Sunak is also likely to confirm that the government is targeting a rise in the national living wage to more than £10 by the time of the next election, a pledge that would match Labour’s.

Bridget Phillipson, Labour’s shadow chief secretary to the Treasury, said the offer was “underwhelming” and would work out at £1,000 a year less than Labour’s plans for a minimum wage of at least £10 an hour for people working full time. “Much of it will be swallowed up by the government’s tax rises, universal credit cuts and failure to get a grip on energy bills,” she said.

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Health

Yobe confirms 4 new polio cases

The Yobe Government has confirmed four new cases of polio in three Local Government Areas three years after the state was declared polio-free.

The Executive Secretary of the State Primary Healthcare Board, Dr Babagana Kundi-Machina, made this disclosure while launching a campaign against the disease in Machina, a border LGA with Niger Republic, on Saturday.

He said that the State Government, in collaboration with its partners, had launched a state-wide outbreak response and vaccination exercise to address the situation.

“It is unfortunate that after three years of being certified polio-free, we have recorded a circulating polio virus outbreak in Bursari, Machina, and Yusufari LGAs,” Kundi-Machina said.

The State Coordinator of the World Health Organisation, WHO, Dr Hamisu Alhassan, pledged the organisation’s support to the state toward curbing the outbreak.

He called on the public to adopt preventive measures, including personal and environmental hygiene, hand washing, and immunisation to boost immunity and promote good health, especially among women and children.

On his part, the Emir of Machina, Alhaji Bashir Machinama, urged his people to cooperate with the government by accepting the vaccine.

Machinama thanked the State Government for its prompt response and pledged to sensitise his community to take relevant steps to contain the disease.

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Health

Cholera kills 11 in Ebonyi

A cholera outbreak in Ndibokote village, located in the Ezza Inyimagu area of Izzi Local Government, has claimed the lives of 10 people, including a nursing mother who leaves behind a nine-month-old baby.

The outbreak, confirmed by Ebonyi State Health Commissioner Dr. Moses Ekuma through a statement issued by ministry spokesperson Lucy Anyim, has affected approximately 20 others who are currently receiving treatment. Health officials are working diligently to contain the disease and prevent further spread in the community.

Dr. Ekuma noted that Governor Francis Nwifuru has approved the procurement of essential medical supplies to manage the crisis.

Additionally, three treatment centers have been established in the affected area, including Iziogo Health Centre, Sudan Mission Onuenyim, and a facility in Ndibokote village.

Open defecation and poor hygiene practices, along with reliance on stream water for drinking, are believed to be contributing factors to the outbreak.

Residents have been urged to follow precautionary measures to reduce the risk of further infections. Health authorities are on high alert to ensure the situation remains under control.

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Health

Fubara approves employment of 2,000 Medical personnel

Governor Siminalayi Fubara of Rivers State has approved the recruitment of 2,000 medical personnel and the payment of three years’ outstanding scholarship entitlements for medical students.

A press statement issued by Nelson Chukwudi, Chief Press Secretary to the Governor, highlighted Fubara’s dedication to reversing the decline in academic standards in the state.

The Governor noted that in previous years, Rivers children were highly regarded for their academic excellence, a reputation that has since diminished due to the growing reward for mediocrity. Fubara vowed to restore this legacy.

Upon assuming office, Fubara said he was confronted with unpaid scholarship entitlements for medical students at the Rivers State University and that without hesitation, he authorized the release of funds, ensuring that students could continue their studies without frustration.

The Governor made these remarks during a courtesy visit by the accreditation panel of the Medical and Dental Council of Nigeria (MDCN), led by its Registrar, Dr. Fatima Kyari, at the Government House in Port Harcourt.

The delegation also included key officials from Rivers State University and the State Commissioner for Health, Dr. Adaeze Chidinma Oreh.

Fubara emphasized the importance of infrastructure and support for academic growth, aiming to restore Rivers State’s status as a hub for educational excellence.

He expressed his disappointment in the current societal trend of valuing cultism over intellectual achievement but reaffirmed his administration’s resolve to change this narrative.

During the meeting, Fubara also noted that 1,000 medical personnel would be employed through the Rivers State Health Management Board, while the remaining 1,000 would be engaged by the Rivers State University Teaching Hospital (RSUTH).

He reiterated his commitment to promoting quality medical training and explained that his administration understands the financial challenges associated with medical education.

Dr. Fatima Kyari, speaking on behalf of MDCN, lauded the state’s commitment to infrastructure and training, emphasizing the importance of maintaining a high standard of medical education. She encouraged the state to further develop research opportunities to compete on a global scale.

Prof. Nlerum Okogbule, Vice Chancellor of Rivers State University, expressed gratitude to Governor Fubara for his unprecedented support, stating that the university is now a top choice in Nigeria and that the College of Medical Sciences has significantly boosted its national and international reputation.

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