Stephen Morgan MP has criticised the Chancellor for administering a real-terms pay cut to Armed Forces personnel earning over £18,000.
This comes as new analysis from Labour has revealed that Chancellor Rishi Sunak will hit every key worker earning over £18,000 in England with a real-terms pay cut this year.
It is estimated there are around 8,880 Armed Forces personnel in Portsmouth, many of whom are likely to face the cut.
In November’s Spending Review on 25 November, the Chancellor announced a ‘pay freeze’ for all public sector workers earning above £24,000 in 2021-22.
NHS workers weren’t included, while those earning less than £24,000 were promised “a fixed increase of £250”.
Taking into account inflation over the next fiscal year, that means every non-NHS public sector worker earning over £18,000 will actually get a real-terms pay cut.
The Shadow Armed Forces Minister and Member of Parliament for Portsmouth South, commented:
“It cannot be right that just at this crucial stage when our Armed Services have stepped in to support the efforts to tackle the coronavirus, many in Portsmouth and across the country will receive a real-terms pay cut.
“Our Armed Forces deserve better and should be rewarded for their efforts, not be punished in having their pay cut, particularly at this moment.”
Shadow Chancellor Anneliese Dodds, added:
“Key workers have kept our country going throughout this crisis, but now Rishi Sunak wants to give over a million of them with a real-terms pay cut.
“Not only is that poor reward for their hard work, it’s economically irresponsible. If families have less money to spend, then businesses will suffer and the recovery will take longer.
“The Chancellor must think again, and cancel plans to cut Universal Credit, hike council tax and cut pay for our police officers, teachers and Armed Forces personnel. They shouldn’t have to carry the can for this Government’s mistakes.”
Mr Morgan has previously called on the Chancellor to reverse the public sector pay freeze.
