Boris Johnson’s inflation contradiction

As Boris Johnson tries to limit pay rises to bring down inflation, ministers have no explanation for why planned rises in the state pension and benefits would be less inflationary than increasing teachers’ and nurses’ pay. The government is attempting to limit public sector pay to 3 per cent, while allowing pensions and benefits to rise to around 10 per cent. 

This is not to argue against protecting the poorest through the standard indexation of pensions and benefits. But it is to say that Mr Johnson’s pay policy is confusing. And he cannot pretend there is no pay policy. Even refusing to engage directly in pay talks with rail workers – despite owning the network and funding services – is a policy.

Johnson’s mantra is that incomes have to be suppressed to bring down inflation. So the question he needs to answer is why he thinks some income rises are toxic and inflationary and others are benign and acceptable.