Asked whether the cap would be reviewed for future years, he added: "Public sector pay restraint is one of the tough choices we've had to make to balance the books after Labour's crash and what was left behind". He said he will listen to them and MPs before a final decision is issued.
MPs voted with all 313 Tory MPs to defeat the amendment.
Mr Umunna's amendment was defeated by 322 votes to 101 with most Labour MPs following the leadership by abstaining. That's because the vote has no enforcement power and instead carries more symbolic value.
It was the first parliamentary vote since the general election three weeks ago in which the Tories lost their overall majority. It would also display that May is unable to control the government she is in charge of.More news: Killing people in name of 'Gau Bhakti' is not acceptable: Narendra Modi
Unison general secretary Dave Prentis said: "The Government's rejection of the proposals to end the pay cap is an insult to paramedics, nurses, teaching assistants, care staff and all public sector workers".
Seven Labour MPs from Wales are backing calls to keep the United Kingdom in the single market and the customs union.
Speaker of the Commons John Bercow has chosen the Labour amendments that will be discussed today.
The Labour MP said that "when you have a majority which is propped up by another party that does not share the culture and the world view of numerous members opposite - whose views I respect on issues. like women's rights - you do have to wonder whether there is actually some nervousness over what will be the definition of abuse".
It plans to table an amendment criticising what it says is the absence of measures to "reverse falling living standards" such as action on energy bills and wages.More news: Hansen expects tough Lions test
One of the potentially most risky amendments for the Government comes from Stella Creasy, Labour MP for Walthamstow, and is aimed at allowing women from Northern Ireland to have abortions in England and Wales on the NHS.
Plaid Cymru's four MPs will support the amendment to stay in the single market and the customs union.
In yesterday's prime minister's questions, Corbyn was critical of the government's austerity economics, linking them to the recent terror attacks and Grenfell fire.
However, in a major victory for Creasy, the government has agreed to extend abortion funding to Northern Irish women.
He indicated there would be decisions in Chancellor Philip Hammond's Budget in the autumn.More news: Cult of Chucky Trailer Brings Child's Play to the Asylum
Votes on the Queen's Speech and amendments are set to get underway this afternoon and will likely conclude early this evening.
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