Budget 2010: Two-year pay freeze on public sector

There will be a two-year pay freeze for public sector workers, Chancellor George Osborne said today.

Unveiling what he said would be a "tough but fair" Budget, the freeze is twice as long as was envisaged before last month's election. However, the 1.7 million lowest paid will get a flat £250 pay rise. Elsewhere, Osborne said to control costs, the Government has decided to fix child benefit for the next three years.