Unions seize on Burnham's arrival to threaten strikes for better pay deals - as figures show state salaries already surging ahead of private sector

By JAMES TAPSFIELD, UK POLITICAL EDITOR Published: 15:40, 21 July 2026 | Updated: 15:46, 21 July 2026 Unions have seized on Andy Burnham's arrival to threaten NHS and schools strikes unless there are better pay deals.  The BMA urged new Health Secretary Yvette Cooper to 'reset relations' by boosting wages, pointing to disputes with consultants and resident doctors. Meanwhile, the National Education Union said it was balloting for industrial action over an above-inflation 3.5 per cent pay offer for this year. General secretary Daniel Kebede demanded the incoming Secretary of State, Lucy Powell, ditches 'austerity' to provide more funding. The tough messages were delivered as official figures showed state workers' salaries continuing to rise faster than their private sector counterparts.  Regular pay was going up by 2.9 per cent annually in the private sphere between March and May - compared to 5.5 per cent in the public sector. With headline CPI inflation averaging 3 per cent a year over the three months that meant non-state workers were getting worse off. The BMA urged new Health Secretary Yvette Cooper to 'reset relations' by boosting wages, pointing to disputes with consultants and resident doctors NEU general secretary Daniel Kebede demanded the incoming Secretary of State, Lucy Powell, ditches 'austerity' to provide more funding Your browser does not support iframes. In a message to Ms Cooper - who moved from Foreign Secretary to replace James Murray yesterday - BMA council deputy chair Dr Emma Runswick said: 'As secretary of state she has an opportunity to reset relations with the NHS workforce, which will require action to reverse both pay erosion and the undermining of the profession, which has seen doctors forced onto the picket line in recent years... 'Consultants now have a mandate to strike, so reaching a solution that both avoids the need for senior hospital doctors to take industrial action in the short term, and safeguards the profession and patient care going forward, must be a priority. 'While the recent deal has been accepted by resident doctors in England the government must not lose focus on implementing it, or it faces further dispute.'  NHS consultants, who are paid an average of £152,000, recently voted to take industrial action unless their pay is increased. Resident doctors voted last month to accept a package worth 6.6 per cent over two years, backdated to last April. Starting salaries will be over £40,000, and the most senior residents will get £76,500 in basic pay - which can be topped up with allowances and other provisions. Mr Murray also offered thousands of extra training places for newly qualified doctors and to cover exam fees as he struggled to settle the dispute.  After Ms Powell replaced Bridget Phillipson, Mr Kebede said: 'Schools have been told for too long to do more with less. 'They are now being asked to find almost half a billion pounds they do not have to plug the funding gap in the government's teacher pay offer. 'The NEU is preparing a formal ballot on this issue, and it is not too late for Government to change course. 'It should accept that it was wrong to have ever suggested there are 'efficiencies' to be made in school budgets when the education system is on its knees. 'Bridget Phillipson was hampered from the start by a wider government policy of continuity austerity that has alienated voters and stagnated services. Andy Burnham took his first Cabinet today after becoming PM yesterday  'Now is the opportunity for a step change that parents, schools, teachers and support staff can recognise as a break with the past.' Earlier this month, the Government accepted the recommendations of the School Teachers' Review Body (STRB) for teachers to receive a 3.5 per cent pay rise from September and a 3 per cent increase from the same time in 2027. But the Department for Education said schools will have to find the first 1 per cent of each pay award. The NEU said this would amount to £460million, and last week declared it will launch a formal ballot in October.