George Osborne told the Conservative conference in Manchester yesterday that a one year pay freeze for more than four million staff would be 'the equivalent to saving 100,000 public sector jobs'.

The freeze would apply to all staff who earn more than £18,000, except for the armed forces.

'I say to every public sector worker: it is the best way to try to protect your job during this period,' he added. 'We are all in this together.'

The move would affect all staff directly employed by the NHS, including district nurses and health visitors.

It comes hot on the heels of Chancellor Alistair Darling's letter to the Doctors' and Dentists' Review body, requesting GP pay be frozen in 2010/11.

Mr Osborne remains committed to cutting inheritance tax, however.

The joint general secretary of union Unite, Derek Simpson, said that Mr Osborne had made it clear that the Tories are going to hit hard working public sector workers on low pay while preparing to line the pockets of the wealthy.