Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the effect of a pay freeze on the (a) retention and (b) recruitment of public sector workers.

Covid-19 has had an unprecedented impact on the private sector labour market, with unemployment and redundancies rising, and those on the Coronavirus Job Retention Scheme seeing a significant fall in earnings. The public sector has been shielded from these effects.

Later this year, the independent Pay Review Bodies (PRB’s) will publish evidence and commentary on recruitment and retention for ten of the largest public sector workforces including: armed forces, teachers, police officers, the National Crime Agency, prison officers, doctors and dentists, Agenda for Change NHS non-medical staff, the Judiciary, senior civil servants and senior military personnel.

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.

Latest data shows that recruitment and retention in some of our largest workforces remains strong. We have recruited over 41,000 new trainee teachers this year – 23% more than last year – and postgraduate recruitment is at its highest level since 2010/11.

In the NHS joiner rates are higher than last year at 13.8%, and leaver rates have fallen since 2017/18. UCAS end of cycle data shows 25,100 student nurses enrolled on courses in 2020/2, a 27% increase at English providers compared to the previous year.