Public Sector: Pay

(asked on 26th February 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if he will make it his policy to lift the public sector pay freeze.


Answered by
Steve Barclay Portrait
Steve Barclay
Secretary of State for Environment, Food and Rural Affairs
This question was answered on 4th March 2021

In order to protect jobs and ensure fairness, we confirmed at the Spending Review (2020) that there will be a temporary pause to headline pay rises for the majority of public sector workforces in 2021-22.

It is right to temporarily pause pay awards for public sector workers earning £24,000 and above on a full-time equivalent basis, while we assess the impact Coronavirus has on the wider economy and labour market.

For all workforces where such arrangements exist, performance pay, overtime, pay progression and pay rises from promotion will continue. This means that the majority of public sector workers will see an increase in their pay in 2021/22.

Given the unique impact of Covid-19 on the health service, and despite the challenging economic context, the government will continue to provide for pay rises for over 1 million NHS workers.

The Government will also prioritise the lowest paid, with 2.1 million public sector workers earning less than £24,000 receiving a minimum £250 increase.

The Government will reassess public sector pay policy ahead of the 2022/23 Annual Pay Round when the impact of Covid-19 on the wider labour market will be clearer.

Reticulating Splines