Public sector workers will learn on Wednesday whether they will get a pay rise next year, Rishi Sunak has confirmed.

The Chancellor is set to deliver the 2021 Budget and Spending Review to the House of Commons on Wednesday.

In 2021/22 public sector pay rises were "paused", except in the NHS and for workers on less than £24,000 who got a small rise.

Mr Sunak is under huge political pressure not to do the same again - especially with inflation and fuel bills savaging families’ existing budgets.

But even a 2% or 3% rise in public sector wages would likely become a real-terms cut due to soaring inflation.

Asked if he planned to increase the public sector wage bill, Mr Sunak told the BBC's Andrew Marr: "That will be one of the things that we talk about next week in the spending review."

He added: "Obviously over the past year we took a decision to have a more targeted approach to public sector pay, given that the year before there were large increases and obviously the private sector were seeing pay decreases last year while they were on furlough.

"Now going forward we'll have to set a new pay policy, and that will be a topic for next week's spending review."

Frances O'Grady, General Secretary of the Trades Union Congress (TUC) this morning called on Mr Sunak to end the pay freeze.

She said: "Public services are essential to the resilience our economy needs. They must be better funded, with good pay and conditions to attract and keep high quality staff.

"The spending review must deliver the funding to prove that this government is genuinely committed to building back stronger services."

She added: “Too much of our economy has been taken over by business models that profit from low pay and denying workers’ rights.

"That must end. The Chancellor must set out plans to rebuild our economy in a new design with fair pay and decent jobs for all."

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