The public sector pay cap of 1% is under review because the general election showed people are “weary”, Number 10 sources said.
“The government are now in full retreat on public sector pay. Backbench Tory MPs have clearly had enough of having to defend the indefensible when nurses come to their surgeries saying they need to go to food banks to survive.
"During the election Liberal Democrats, Labour and the SNP joined with the unions to call for a pay increase for public sector workers.
“The government refused to listen and said there was no magic money tree. Now that tree has appeared in Belfast and the Tories seem to shaking it down for every last penny.
"Nurses, teachers, and our emergency services are on the front line every single day but have had thousands of pounds pinched from their pay packets already. They did not create the financial crash but have had to pay the highest price for it. Theresa May should end the cap on public sector pay now.”