Civil Service Compensation Scheme

Debate between Chris Stephens and Stuart C McDonald

Friday 2nd December 2016 Commons Chamber

[Chris Stephens]

I agree with the hon. Gentleman. He is being moderate when he says that the policy is a kick in the teeth. It certainly is, and we need to remember that these civil servants deliver precious public services every day, and they deserve to be treated better.

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

Does my hon. Friend share my concern about the recent numbers published by the Cabinet Office in answer to my written question? The numbers seem to suggest that a disproportionate number of the civil servants who have been made redundant describe themselves as persons with disabilities.

[Chris Stephens]

I agree with my hon. Friend, and I will address the equality impact assessment. It is worth noting that, in the Enterprise Act 2016, the Government changed the cap to £95,000 a year and, in doing so, referred to people as “public sector fat cats,” despite the evidence that civil servants with 30-odd years’ service who earn less than £27,000 a year will be caught by the cap. Low-paid civil servants are not public sector fat cats.

The combined effect of all the proposed changes will be to reduce radically compensation for loyal civil servants. With cuts to the civil service compensation scheme in 2010, the recent changes to pensions, massive staff reductions and years of pay restraint, staff are left wondering what will be next.

The Government produced an equality impact assessment only once the consultation had concluded and they had produced their final response. That runs counter to the public sector equality duty, which states that such impact assessments should start in the early stages of a review and should form part of the active decision-making process.

Once it materialised, the equality impact assessment highlighted that there is a particular impact on older workers, who face both direct and indirect discrimination in the proposals. Raising the minimum age for the early access to pension option will have a direct and significant impact on those in the 50 to 54 age bracket. Meanwhile, lowering the caps on maximum compensation payments will indirectly affect older workers because they are much more likely to have long service.

Throughout, the Government have frustrated negotiations with trade unions and undermined the consultation process. The Government have shown little regard for the impact of the reforms, as illustrated by the fact that the equality impact assessment was provided only once the consultation had concluded, despite repeated requests from trade unions and Members of Parliament. Affected groups were therefore unable fully to understand the impact that the proposals would have on them in time to feed it in to the consultation. The data provided for consultation purposes did not cost individual proposals; instead, comparisons were made between the current civil service compensation scheme and the proposed future civil service compensation scheme, which suggests that the final package of reforms was a fait accompli.

Without information on how different proposals would affect different groups of workers, it was extremely difficult to conduct meaningful consultation. The Government have taken a similar obstructive approach to negotiations. In June, months before the formal response to the consultation, the Government issued a letter to trade unions outlining a set of reforms and demanding that the unions sign up to them before negotiations could continue. Those outrageous preconditions made a sham out of the negotiations. With little of significance to address and an absence of any equality impact assessment or analysis of the consultation responses, and refusing to be bullied into accepting the preconditions, trade unions representing the majority of civil servants—PCS, Unite and the Prison Officers Association—were excluded from the talks.

After months of silence, on 22 September 2016, the Government issued a formal response to the consultation, which set out drastic cuts. Alongside this came the long overdue equality impact assessment. Despite over 3,000 responses to the consultation, 95% of which disagreed with the Government’s fundamental premise about the need for reform, the Government set out a package of reforms that were little changed from their original position. The little movement made since the initial proposals has been used as leverage to blackmail trade unions into accepting detrimental changes to their members’ terms and conditions, as I outlined earlier.

The proposals will destroy civil service morale, which is already at breaking point, and as promises are broken that leaves no assurance that further attacks on terms and conditions are not soon to follow. The proposals will hinder future recruitment exercises as years of pay restraint, coupled with worse terms and conditions, make the civil service a less attractive employer.

I want to mention the process. On 20 October, I, as chair of the PCS parliamentary group, wrote to the Minister for the Cabinet Office and Paymaster General, but I have not had a response. I was told by him, behind the Speaker’s Chair during a Division, that he would meet me and other Members belonging to the PCS parliamentary group—there are 83 Members from both sides of the House in that group—to discuss the issue. However, in a written ministerial statement on 8 November, the Government announced that they were going ahead with the proposals, without bringing these matters to the Floor of the House. Such is the severity of the proposals that I firmly believe the Government should have made a statement in the House, so that all Members could question them on their proposals.

I pay tribute to the thousands of civil servants who will be watching this debate for all the work they do to deliver public services. I look forward to the Minister’s response, and I ask the Government to think again.