Labor staff are voting on whether to accept a pay freeze this year, the Guardian understands.

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

Labor's coffers have been depleted by the loss of short money, a constitutional grant of money to the opposition now that the party is in power. According to its accounts, the company received £7.5m in short-term funding in 2023.

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

One Labor staffer said: "For all the hard work and sacrifice that went into last year's election result, the pay freeze is a crushing blow. It raises serious questions about staff at the most senior levels - many of whom are no longer Working for the party – what is being done to prepare for what they know is coming.”

Another said: "We don't have the money for pay rises locally but more senior staff have been appointed in London in recent weeks on six-figure salaries. How many directors do they need there?"

Labor general secretary Hollie Ridley fought back tears at a staff meeting last week to discuss the pay deal, according to staff. A party source said she became emotional as she expressed how much she valued her staff and their efforts.

Many former senior staff have moved on to government roles in Downing Street and Whitehall departments and are no longer on the party payroll. Ridley succeeds David Evans, who resigned as secretary-general in September and will become a Labor member of the House of Lords.

Labor is preparing for a similar stand-off with millions of public sector workers this year. The government is proposing a 2.8% pay rise for teachers, NHS staff and senior civil servants. The union said the figure was too low given the rising cost of living and threatened industrial action.

Internal figures show pay rises for Labor staff will increase by 5% in 2023 and 10.5% in 2023.

At the end of 2023, Labor employed 533 people, including 494 full-time, according to accounts published in September. On the eve of the election, the number peaked at 681. The number of employees at the end of 2024 has not yet been announced.

Labor raised more than £9.5 million to fund its campaign at July's general election.

A Labor spokesman said: "Hard-working Labor staff have been vital in turning around 14 years of Tory government and continue to play a huge role in supporting the Labor government as we implement our plans for change. We do not take part in pay negotiations or other staffing Question Leave a Comment."