Proposal follows loss of constitutional payment given to opposition parties

Labour party staff are being balloted on whether to accept a pay freeze this year, the Guardian has learned.

Unite and GMB members who work for the party have until Friday to vote on whether to accept the proposed pay freeze.

Labour’s coffers have been depleted by the loss of Short money, the constitutional payment given to opposition parties, now that the party is in government. It received £7.5m in Short money in 2023, according to its accounts.

Insiders accused senior staff of failing to plan adequately for the impact of the election result on the party’s finances.

One Labour employee said: “A pay freeze is a kick in the teeth for all the hard work and sacrifice that delivered last year’s general election result. It raises serious questions about what the most senior staff – many of whom are no longer working for the party – were doing to prepare for something they knew was coming.”

Another said: “No money for pay rises for us on the ground but more senior staff have been appointed on six-figure salaries in London in recent weeks. How many directors do they need down there?”

Hollie Ridley, Labour’s general secretary, held back tears at an all-staff meeting last week where the pay deal was discussed, according to the employees. A party source said she became emotional when expressing how much she valued staff and their efforts.

Many former senior employees have moved to government roles in Downing Street and Whitehall departments, and are no longer on the party payroll. Ridley replaced David Evans, who stood down as general secretary in September and will become a Labour peer in the House of Lords.

Labour is braced for a similar standoff with millions of public sector workers this year. Government departments have recommended a pay rise of 2.8% for teachers, NHS staff and senior civil servants. Unions have said this is too low, considering the increase in the cost of living, and have threatened strike action.

Labour party staff received a 5% pay rise in 2023 and 10.5% in 2023, according to internal data.

At the end of 2023, Labour employed 533 people, 494 of them full-time, according to its accounts published in September. In the run-up to the election, the number peaked at 681. Staff numbers at the end of 2024 have yet to be published.

Labour raised more than £9.5m to fund its campaign effort for the general election in July.

A party spokesperson said: “Hard-working Labour party staff were vital in turning the tide on 14 years of Conservative government and continue to play a huge role in supporting the Labour government as we deliver our Plan for Change. We do not comment on pay negotiations or other staffing matters.”