Theresa May will lift the public sector pay cap later this month as the Tories seek to respond to concerns that the public are “tired with austerity”, according to reports.

Pay increases in the public sector have been frozen and then capped at 1% for seven years.

But the Prime Minister is apparently planning to announce the end of the cap with pay to increase in line with the rate of inflation or above.

The Sun reports that the change will be made over the course of the next two years to avoid placing too great a strain on the Treasury.

Those professions struggling to recruit and retain staff will be prioritised for the change.