The coalition expects 490,000 public sector job cuts by 2014-15 as a result of the spending cuts, Danny Alexander, the chief secretary of the Treasury has accidentally disclosed.
Alexander was photographed with two pages of report, set to be unveiled tomorrow, as he left the Treasury building.
It also calls for employers to strike deals to cut hours in order to lower the levels of redundancies, which has been forecast by the Office for Budget Responsibility. (article continues below)
The document also claims the overall public sector pay has been generous, with pay packages four times as high as for those in the private sector. It says the two-year freeze put in place for all but the lowest paid – will reduce the job losses.
It says the government plans to mitigate the impact of redundancies by creating improved conditions for private sector growth. The government hopes that the private sector will take the slack in the labour market caused by public sector job losses.