This is wrong

The Telegraph

Why do the public sector get paid more than the private sector? What kind of incentive is that for a strong economy where people take risks?

The gap between public sector and private sector pay has risen to its largest in 10 years, with civil servants paid up to 9pc more on average.

The Office of National Statistics (ONS) said that last year public sector workers were paid on average between 7.7pc and 8.7pc more than private sector employees.

The figure for April 2011 compares with a gap of 7.8pc in 2010 and 5.3pc in 2007, before the financial crisis began.

The ONS said that to make sure the figures are consistent over time, the numbers assume employees of those banks nationalised in 2008 were in the private sector until 2011.

If the ONS had not made that assumption, the pay gap would have widened even more to 9.3pc.

Several reasons were given for the rise, including the fact that there are more older employees in the public sector and earnings tend to rise with age.

Another reason given was that that the public sector is made up of a greater proportion of higher-skilled jobs, with more lower-skilled jobs outsourced to private firms in the past decade.

The ONS also said public sectors were paid more because there is a bigger proportion of people who have degrees or equivalent qualifications in the industry and private sector workers are more likely to get other perks such as company cars and health insurance.

The ONS figures will provide fresh ammunition for Conservatives who believe the public sector should be cut back further as the data show salaries were inflated during Labour’s years in command.


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  • motorizer

    Damn straight. i dont get it. its just completely against the grain. Its going to come to a head one day…soon…if not already. it makes no sense. its just another point of socialism to enter our lives. take a look at greece and their rail system. one in three were “employed” in the rails. its free money for bludgers.

  • Peter WIlson

    It’s called the middle class rip off. It used to be that public servants had job security to make up for the poor pay. Now they get great pay to go with their job security.

    If you think about it, it’s like the reverse of ponzi scheme. We’re told the world will collapse if we don’t keep adding to the public service trough.

  • jay cee

    i thought the complaint when the public wages were low was that there was no incentive to attract the right people away from the private sector.