Millions of public sector workers are to receive significant pay rises with doctors and teachers receiving increases of 6% or more after Rishi Sunak accepted a pay review.

The pay reviews suggested that workers should receive pay rises of between 6% and 6.5% for 2023 to 2024. This could cost around 5 billion pounds.

Sunak met with Chancellor Jeremy Hunt to discuss the move this morning with the rise set to affect many public sector workers.

However, this will not include the majority of civil servants.

The Treasury said that the money may need to come from existing departmental budgets after Rishi Sunak and the Government ruled out extra borrowing.

A formal announcement is expected late today (Thursday) but The Times reported that teachers, junior doctors, police and prison officers are expected to receive between 6% and 6.5% in pay increases.

Jeremy Hunt wants to manage debt and curb inflation

Chancellor Jeremy Hunt said the Government would take “difficult but responsible” decisions on the nation’s finances and public sector pay in order to manage debt and curb inflation.

The current level of CPI inflation is running at 8.7% and Mr Sunak – who has promised to cut it to around 5.3% by the end of the year – wants to avoid pay increases which could fuel a wage-price spiral.

Mr Hunt told MPs on Thursday that “it is important to deliver on the Prime Minister’s priority to get debt falling and to control borrowing to avoid adding inflationary pressures and risk prolonging higher inflation”.

“That means taking difficult but responsible decisions on the public finances, including public sector pay, because more borrowing is itself inflationary.”

Pay rise announcement comes amid 'longest walkout yet' by junior doctors

The 6% pay rise for junior doctors came as medics joined picket lines across England.

Disruption to thousands of planned appointments is expected as junior doctors in England on Thursday started their longest walkout yet in the pay dispute.

The strike started at 7 am and ends at the same time on Tuesday.

Meanwhile, teachers from the NASUWT union in England plan to stage continuous action short of strikes starting in September, although its members could still walk out in the autumn if the row continues.