The UK government has announced that public sector pay increases for 2025-26 will rely on improvements in productivity. While a proposed 2.8% pay rise for teachers, NHS staff, and civil servants has drawn criticism from unions, the government stresses the need for fair pay for both workers and taxpayers. Concerns about addressing pay erosion and potential industrial action have been raised by organizations such as the British Medical Association and Unison. The final pay recommendations will be made next year after review by public sector pay bodies.