Health minister Jeremy Hunt wants the government to drop a cap on public sector pay rises of a below-inflation 1 percent for nurses, while education minister Justine Greening wants more money for schools, according to the newspaper.
Despite her party's expectations of a landslide victory, May lost her majority in parliament in last month's election, pushing her into a deal with a small eurosceptic Northern Irish Protestant party.
The opposition Labour Party fared better than expected in last month's election with its promises of measures such as the end to a 1 percent cap on public sector pay increases.
British Agriculture Minister Michael Gove told the Sunday Times newspaper that the government should accept the findings of any future public sector pay reviews.
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