The Prime Minister (Mr David Cameron)
Since coming to power the Government have taken a number of steps to control public sector pay. At the first meeting of the Cabinet, Ministers announced that they would take a 5% pay cut—and that their pay would be frozen for the rest of the Parliament; vital savings have been achieved by freezing the pay of those earning over £21,000 and placing restrictions on bonuses for senior managers; transparency has been increased by publishing the salaries of senior Whitehall officials; and requirements for ministerial scrutiny of the highest public sector wages have been extended and strengthened.
In the civil service in particular significant savings have been made. Departmental spending envelopes set at the spending review mean that administration costs will fall by £5.899 million by 2014-15, a reduction of 34%. In addition, Departments have taken forward recruitment freezes which, alongside reforms to the civil service compensation scheme will deliver further savings over the spending review period.
It is in this context that the 33rd report of the Review Body on Senior Salaries (SSRB) is being published today. The report covers the remuneration of the judiciary, senior civil servants, senior officers in the armed forces and certain senior NHS managers. Copies have been laid in the Vote Office, the Printed Paper Office and the Libraries of both Houses. I thank the SSRB for their work in preparing this report.
The Judiciary
Given in particular the two-year pay freeze that will be in place for public servants earning over £21,000 from April 2011, the Government are not announcing any immediate changes to judicial salaries, but are considering the detail of the report overall and will respond at an appropriate time.
Senior Civil Service
The Government confirm that they will continue to work on reforms to the current SCS reward model that are consistent with the Government’s wider policy on restraint in public sector pay, and senior pay in particular, and the need to ensure that the civil service can continue to recruit, retain and motivate sufficient people of the necessary quality to fulfil the important roles undertaken by the SCS. The Government are grateful for the constructive engagement from the trade unions on SCS pay reform and will continue to consult and engage with them going forwards.
Senior Officers in the Armed Forces
The Government have accepted the review body’s recommendation that the Ministry of Defence review the performance management and pay system and consider whether improvements can be made.
Senior NHS Managers
The Government thank the review body for its work in this area and for continuing to monitor recruitment and retention over the pay freeze period.
Other Review Body reports for 2011-12
My right hon. Friends the Secretaries of State for Defence, Justice, Education and Health are making statements today on the reports of the Armed Forces Pay Review Body, the Prison Service Pay Body, the School Teachers Review Body, and the NHS Pay Review Body in respect of pay for the relevant workforces.