Chancellor will also increase minimum wage, but economists warn measures not enough to counteract inflation and cuts

Rishi Sunak will end the public sector pay freeze for million of workers and increase the national minimum wage in the budget on Wednesday, though economists warned the measures would not compensate for inflation rises and cuts to universal credit.

The chancellor is set to confirm that the yearlong “pause” on public sector pay, which affected 2.6 million teachers, police and civil servants during the pandemic, will be lifted as the economy recovers from the pandemic.

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