Public Sector Pay Policy

Debate between Dan Carden and Chris Stephens

Tuesday 5th June 2018 Westminster Hall

[Chris Stephens]

I agree with the hon. Gentleman. I was a trade union rep in local government before I arrived in this place, and when the public sector pay cap was first put in place, I remember that the argument used to sell it to public sector workers was that the freeze would protect jobs. As he has said, however, we have instead seen job losses in the Departments and elsewhere in the public sector.

I have a copy of the letter that the Minister wrote to PCS reiterating the position that he had stated in the meeting. However, independent research undertaken by the Centre for Labour and Social Studies on behalf of the PCS came to the following conclusions:

“Any increases in public sector pay would have to come out of Resource Departmental Expenditure Limits”,

which are Departments’ current budgets. It continued:

“departments as a whole will continue to suffer real term cuts to their RDELs up to 2020. In the departments of interest covered by our analysis, only the Ministry of Defence will see an increase…This falls way short of what is needed for a 5% nominal pay rise in each year, and also fails to accommodate annual pay rises of 1%”.

In particular, it said:

“Given current projections of departmental expenditure limits, we conclude that any pay rise for public sector workers across…departments would have to come from cuts to jobs or to public services.”

Delegated pay talks are a key part of the problem on pay in this area. There are—this is staggering—in excess of 200 sets of pay negotiations throughout the civil service and its related bodies. The trade unions require proper talks on pay claims, including exploration of the scope for a more coherent approach to pay throughout the civil service and its related bodies. As I understand it, tentative talks on coherence have been under way for years, but progress has been slow. PCS has had a meeting with the Minister, who I believe agreed to reflect on the points made to him and has responded by leaving the door open to such discussions. However, there is frustration that no further progress seems to have been made.

I hope the Minister can today update the House on the Government’s approach to delegated pay, providing for more coherence for the pay structure for civil servants.

[Dan Carden (Liverpool, Walton) (Lab)]

Does the hon. Gentleman agree that when pay bargaining is delegated to Departments that are being cut by the Treasury, the whole process is an absolute sham? There is no possibility of getting rid of the 1% pay cap because the Departments have themselves been cut.

[Chris Stephens]

I agree with the hon. Gentleman. He makes a valid point. One difficulty arising from having 200 sets of pay negotiations is to do with the Equal Pay Act 1970. How does it operate for civil service pay with so many pay schemes across the board? The Government should reflect on that.