Civil Service Pay — House of Commons, 2021-11-29
Topic: Government Operations
Michael Tyrone Ellis (Conservative, Centre-right): I thank the hon. Member for Glasgow South West (Chris Stephens) for securing this important debate, and welcome the opportunity to respond. I know that, in his role as chair of the PCS parliamentary group—a position that I think he still holds—he shares my interest in matters relating to the civil service At the beginning of his remarks, the hon. Gentleman paid tribute to his grandfather. Although, of course, I did not have the privilege of knowing his grandfather, may I say that I am sure that his grandfather would be proud of him, not only for the speech that he has just given to the House, but for his service to his constituents as a Member of Parliament Across the House we all know that civil servants are committed to delivering vital services to the general public. That is what they do; it is the essence of who they are. Ministers are enormously proud—I include myself in this category—of the dedication and professional commitment that civil servants across the board and of all grades demonstrate in delivering public services and the Government’s priorities, particularly during what we know has been a very challenging time. Civil servants of all grades have played a vital role during the pandemic to maintain public services, and will have performed functions that will have saved lives. Civil service pay is determined by separate processes for delegated grades—typically grade 6 and below—and the senior civil service, which is calculated separately. For delegated grades, the Cabinet Office publishes the pay remit guidance on an annual basis. The pay remit guidance is a cost-control document setting out the parameters of average awards in a pay remit year for Departments. For the senior civil service, it is different. The Senior Salaries Review Body makes independent recommendations to the Government based on evidence provided by the Government, with recognised trade union data and labour market data added into the equation In 2011, some 10 years ago now, the Government took a tough but fiscally responsible decision to implement a two-year pay freeze. That was followed by a 1% pay award between 2013 and 2017, applied across all workforces in the public sector, as many of us will recall. There is no doubt that these were difficult decisions but they were fiscally responsible ones that we had to take in response to the then economic position—a position, I need to say, that we had inherited from the previous Labour Government. Those responsible decisions ensured that the Government rewarded hard-working civil servants, which is as it should be, while enabling the UK to tackle the huge deficit that had grown. The sustainable pay structures that we put in place at that time supported many civil servants and prevented us, as a society, from burdening our children and grandchildren with even more debt that accrues. In the years post 2017—from 2018 to 2021—the 1% pay cap was lifted and the civil service received pay rises of up to 2.5%, which was actually higher than inflation at the time In the face of huge uncertainty and the unprecedented impact that the covid-19 coronavirus pandemic had on the economy, the Government temporarily paused pay rises for the majority of public sector workers in 2021-22. We ensured that those who most needed it had the protection that they needed, with 2.1 million public sector workers with median earnings at or under £24,000—therefore many of the individuals whose accounts the hon. Gentleman relayed to the House—receiving an increase of at least £250, equivalent to over 1% In his most recent spending review, my right hon. Friend the Chancellor of the Exchequer announced the end of the temporary pay pause in the public sector, including the civil service, starting from the 2022-23 fiscal year and throughout the duration of the spending review period, right the way through to 2024-25. During this forthcoming period, these increases will retain broad parity with the private sector while continuing to be affordable. It is thanks to the strong recovery in the economy and in the labour market that Her Majesty’s Government have been allowed to return to a normal pay-setting process. My right hon. Friend the Chancellor of the Exchequer also announced the increase to the national living wage of 6.6% to £9.50 an hour from April 2022 for those aged 23 and over, which will benefit more than 2 million of the lowest paid workers in the country. That will keep us on track for our target of the national living wage rate being two thirds of median earnings by 2024 The public sector has on average better remuneration packages when compared with the private sector. That is not a well-known or acknowledged fact, but it is true. In 2019, the Office for National Statistics reported that the public sector benefits from a 7% on total remuneration compared with the private sector. In 2020, the median salary in the public sector was £1,770 higher than the private sector. That gap is most acute at the lower grades, where the public sector average hourly wage is 20% higher than the private sector.