"He is too removed from the reality of daily life to see the impact of seven years of pay pinching on ambulance workers, nurses and teaching assistants", said GMB national secretary Rehana Azam.
The Treasury has denied he used the words attributed to him but the report added five sources had attested to the Chancellor using the language.
Mr Hammond said: "They shouldn't have done it frankly because Cabinet meetings are supposed to be a private space in which we have a serious discussion".
He told the BBC's Andrew Marr Show: 'Some of the noise is generated by people who are not happy with the agenda which I, over the last few weeks, have tried to advance'.
International Trade Secretary Liam Fox is one of those pushing for such a period to last months rather than years, but today he claimed he did not know who was behind the "deplorable" leaks.
Mr Hammond said that government ministers were becoming increasingly convinced of the need for transitional arrangements to reduce disruption as the United Kingdom leaves the EU.
Mr Hammond believes government ministers were becoming increasingly in favour of the need for transitional arrangements to reduce disruption during the process of Britain leaving the EU. "What I would say is that the Government is all working together to deliver Brexit, which delivers on the will of the British people".
It was later claimed that Mr Hammond had told his Cabinet colleagues pushing for public sector pay rises that workers in public services were "overpaid" in comparison to their private sector peers.
Mr Hammond, who campaigned for Remain with Theresa May, said he wanted a Brexit focused on protecting jobs, the economy and "rising living standards in the future".
His comments "will fuel public anger that the Tories are out of touch with the public mood and will plunge Tory MPs into despair at the Chancellor's political tin ear", says the Times.
Distressed ambulance driver explains how he faces extreme financial struggles, thanks to the public sector pay freeze.
Brexit Minister David Davis will head to Brussels on Monday for a first full round of Brexit talks, with European Union officials hoping the Government, yet to set out detailed proposals on several major issues, begins to show more urgency about doing a deal before Britain leaves the bloc in 2019.
But an unnamed minister was quoted in this morning's papers stating that Mr Hammond was attempting to derail Brexit.
'Later in the meeting both Boris Johnson and the PM said we should not say public sector workers are overpaid'.
Leaked Poster Surfaces For Xiaomi's Mi 5X Device
As it can be seen that the Xiaomi has struck a deal with popular Chinese celebrity, Kris Wu for promoting the Xiaomi 5X . On the pricing front, the upcoming Xiaomi Mi 5X is likely to be priced at CNY 1,999, which is approximately Rs 19,000.
Toddler in Florida dies after being left in hot vehicle
Police said young Khayden, who had just one month to go to his second birthday, may have wandered into the vehicle on his own. Khayden was then rushed to Bethesda Memorial Hospital, where he was pronounced dead a short time later. 'I'm scared for him'.
Winnie the Pooh censored in China
Articles about the censorship circulated on Wechat, mentioning rumours that Winnie-the-Pooh programmes were also set to be banned. (Web Desk) - Chinese social media has banned any mention of fictional character Winnie the Pooh , The Financial Times reported .
China's economic growth holds steady despite slowdown fears
This was up from the 6 percent increase in the same period of previous year , according to the National Bureau of Statistics . The robust numbers kept world shares near a record high and briefly helped China's major stock indexes recoup earlier losses.
EasyJet chief McCall appointed to lead ITV
I have had an incredible seven years at EasyJet , I am so proud of what the airline and its people have achieved in that period. Shares in ITV were trading up 2 per cent at 178.5 pence in early deals, while easyJet was down 0.5 per cent at 1,404 pence.