By Max Clarke

Public sector pay has increased in every region of the UK while private sector pay remains squeezed, a report from the Policy Exchange think tank reveals.

Workers in the public sector are paid more than in the private sector, measured annually or as a ‘raw average’. Housekeepers and therapists fare best in the public sector, earning £13,500 and £27,000 respectively, compared to £10,000 and £20,000 respectively in the private sector.

Added to the increased salaries are a host of perks for the public sector workers, including: safe, index-linked pensions, lower working hours and longer holidays and very high job security, the report finds.

Even more damning was the report’s suggestion that productivity in the public sector has flatlined over the past decade despite massive hikes in expenditure, while in the private sector productivity has increased year on year.

Overall, of 288 comparable categories, 167- 58%- receive more pay than their privately employed counterprarts

Public sector union, UNISON, has refuted the figures, with union chief Dave Prentis deeming them “a crude attempt to drive a wedge between the nation’s workforce and provoke a race to the bottom on pay and conditions. The data used is out of date and does not reflect the true picture and it does not compare like with like. It should be taken with a huge barrel of salt.”

Policy Exchange’s report went on to say that, with private companies focusing on staff retention over remuneration, the pay gap will likely increase, further reducing fairness in the labour market.