Oral Answers to Questions

Diana Johnson Excerpts

Tuesday 18th July 2017 Commons Chamber

[Mel Stride]

The hon. Gentleman needs to recognise that national insurance and income tax function in different ways and have different roles in the tax system. We have one of the most progressive tax systems in the entire country. If we look at, for example, those earning above—[Interruption.] Well, by raising the personal tax allowance we have taken 3 million to 4 million people out of income tax altogether. For those earning over £100,000, where we removed the allowance, that, plus national insurance, means that the marginal rates are up to 62% at that level of income.

[Diana Johnson (Kingston upon Hull North) (Lab)]

14. What assessment he has made of trends in the level of public sector pay since 2010; and if he will make a statement.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

We hugely value the work of public servants—teachers, police and nurses. That is why they are paid in line with the private sector, and, in addition, receive a 10% increment, on average, for their pensions.

[Diana Johnson]

We all agree that MPs’ pay recommendations are decided independently and go through automatically. However, other public sector pay review bodies take into account Treasury submissions but then find that their recommendations are vetoed by Ministers. If it is good enough for Members of Parliament, why is it not good enough for nurses, the armed forces, firefighters and teachers?

[Elizabeth Truss]

We do take notice of what the independent pay review bodies say. We have just approved the recommendations of the teachers pay review body and of the nurses pay review body. Listening to their recommendations, the pay review body for the NHS said:

“We do not see significant short-term nationwide recruitment and retention issues that are linked to pay.”

We followed that advice and gave the pay accordingly.