Government considering above inflation public sector pay rises

The new Chancellor Rachel Reeves has accused the Conservatives of running away, leaving her government with all the tough decisions- like public sector pay.

She has hinted that teachers and 1.3 million NHS staff might get the 5.5% above inflation pay rise that independent pay review bodies are said to have recommended.

But Ms Reeves was also clear that finding the money to lift the two-child benefit cap is not an option.