Environment secretary Michael Gove suggested that certain professions within the public sector may be in for pay boosts in the budget and said the government would respect the advice of the pay review bodies.
After the terrorist attacks in Manchester and London and the Grenfell Tower disaster calls for nurses and people working in the emergency services to get a better pay rise have been growing after five years of a one per cent cap.
Mr Gove’s comments came amid reports that senior figures in Mrs May’s cabinet are pushing for a rethink on spending in a series of areas.
Education Secretary Justine Greening has reportedly asked for another £1 billion for schools to make up for funding losses in some areas of the country.
Meanwhile, Deputy Prime Minister Damian Green used a speech to suggest that tuition fees could be scrapped or changed in a bid to win back younger voters.
Mr Gove said it is the “collective view of Government” to “respect the integrity” of independent public sector pay review bodies, one of which warned in March that the one per cent cap is putting “stress” on the health service.
The NHS pay review body highlighted “widespread concerns” about recruitment, retention and motivation among employers and staff and said “we are approaching the point when the current pay policy will require some modification, and greater flexibility, within the NHS”.
Mr Gove’s comments came amid claims that Health Secretary Jeremy Hunt is set to demand a lifting of the one per cent pay cap for NHS workers, citing the pay review body report.
The Environment Secretary suggested he was “suppressing” his own views on austerity when quizzed by the BBC’s Andrew Marr.
Mr Gove said: “These pay review bodies have been set up in order to ensure that we can have authoritative advice on what’s required in order to ensure that the public services on which we rely are effectively staffed and the people within them are effectively supported.
“I think we should respect the integrity of that process.
“I’m not an individual, I’m a member of the Government and a member of a collective team and the collective view of Government policy is that we should respect the integrity of the process.
A Government source said the pay cap was brought in to “deal with the mess we inherited from Labour” and acknowledged the “hard work and sacrifice” made by public sector workers, saying jobs had been protected and the deficit reduced by three quarters.
“While we understand the sacrifice that has been made, we must also ensure we continue to protect jobs and deal with our debts,” the source added.
Meanwhile, Mr Gove said he agreed with Damian Green, Mrs May’s most senior minister, that Britain should have a “national debate” on university tuition fees.