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Why public sector pay bill increased

George Osborne has frozen public sector pay and cut public sector jobs but in the last two years the public sector pay bill has gone up, despite pay freezes.

Chancellor George Osborne will deliver his autumn statement on 5 December.

Mr Osborne will set out new measures to boost the UK economy and give an update on the coalition's plans to reduce the deficit.

Since coming to power, the chancellor has tried to reduce spending by cutting public sector jobs and pay.

But while the number of public sector workers has fallen by 6% in the last two years, the public sector pay bill has gone up despite pay freezes.

Stephanie Flanders reports.