"Median pay in the Public Sector is higher than that of the Private sector"
While that is true (due to the over-representation of professionals like doctors, teachers etc in the public sector as most semi-skilled roles have been privatised), it is not true of the civil service.
In the civil service, median pay is lower than the private sector:
"The average annual salary in the Civil Service is £22,850. This is based on full-time civil servants as at 31 March 2009. This salary is £2,120 less than the national average for the private sector, which was £24,970 in April 2009.
National average based on median annual earnings for full-time employees, year ending 5 April 2008, ASHE 2009.
Around 63 per cent of civil servants earn less than £25,000 a year"
http://www.civilservice.gov.uk/about/facts/mythbusters/index.aspx#
...and pay increases since 1997 have been lower than in the private sector:
Page 61 of http://www.civilservice.gov.uk/Assets/21st-Century-Civil-Service-March-2010_tcm6-36188.ppt shows since 1999 average pay increase in the private sector has been 47% versus 39% in the civil service.
A good metaphor: "Today, my insurance company have cancelled my home contents insurance policy, as tomorrow they plan to burgle my house"