Should public sector workers share the economic pain?

Since April 2008, pay in the private sector has fallen by 1 per cent as workers have agreed to pay cuts and bonuses have disappeared. Meanwhile in the public sector pay has risen by 4 per cent.

This differential is not justified by public sector pay catching up - they are already ahead (and even more so if pensions are taken into account).

"Taxpayers should insist on these deals being renegotated. With the public sector pay bill running around £160bn pa, a 2-3% pay uplift costs us £3-5bn. And it's cumulative - after three years, the additional annual cost is running at £10-15bn. Or 3-4 pence on the standard rate of income tax".

You can read the full story over at Burning our money.