Millions of public sector workers will be given a pay rise of between 5%-7%, but government departments have been told to fund the rise from within existing budgets.
Police officers, junior doctors and teachers in England are among those who will receive the offer after the prime minister accepted all the recommendations of the independent pay review bodies.
Earlier this week, the chancellor, Jeremy Hunt, ruled out providing any extra money funded through borrowing. The move will leave departments facing difficult decisions about how to reallocate spending, with potential knock-on effects for frontline services
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