Civil Service Pay

Florence Eshalomi Excerpts

Tuesday 7th March 2023 Westminster Hall

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

It is a pleasure to serve under you, Mr Pritchard. I, too, pay a big tribute to my hon. Friend the Member for Cynon Valley (Beth Winter) for securing this really important debate. Her passionate opening remarks highlighted why we are having the debate. I want to go back to some of the points that she highlighted.

In the recent survey conducted by the PCS union, 85% of its members said that the cost of living crisis had had a big impact on their mental and physical health. If people are not in a fit position to go to work, how are they supposed to carry out even the basic functions that they are employed to do? When we talk about people using food banks, some Members of this House basically say that that is incorrect, but the figures do not lie: 40,000 of that union’s members say that they are using food banks. That should shame us. Those are staff members, people in work and with a salary, having to rely on food banks. That should not be happening in 2023. Of those PCS members, 18% said that they had missed work because of their inability to afford transport or fuel—the energy companies and fuel companies are making record profits but not passing the benefit down to people who are filling up at the petrol stations—and 40% said that they had had to use credit for essential shopping. We saw what happened a few years ago with the rise of loan companies and loan sharks. If we are not careful, the number of people who have to rely on credit for the basic necessities—for basic bills—will creep up. That is what is happening to people who are in work. In-work poverty should not be happening.

Many hon. Members have highlighted issues across their constituencies, and I think about my own constituency, just over the bridge, where a significant number of civil servants live. Many Members have highlighted how hard our civil servants worked during the pandemic. The hon. Member for Strangford (Jim Shannon) highlighted the fact that, if we are honest, a job in the civil service is no longer a job for life. I will be honest: when I graduated, I applied for the fast stream, but I failed at the first hurdle and I thought that that was the end of my career. A number of people who have worked in the civil service feel that they have no career progression. Their pay is stagnating, and they are leaving. He is right; it is no longer a job for life.

My right hon. Friend the Member for Hayes and Harlington (John McDonnell) highlighted the fact that the 2% increase is an insult—nothing more—because inflation is skyrocketing and the cost of everything is going up for our civil servants. My hon. Friend the Member for Liverpool, West Derby (Ian Byrne) highlighted the really big issue that civil servants are having to rely on food banks. I totally agree with him that the situation is grim. To repeat his words, we are forcing people into abject poverty because they are having to choose. That should not be happening. I also agree with the hon. Member for Aberdeen North (Kirsty Blackman) that as a result of what the Government are proposing and the fact that they are not negotiating, fewer people will be doing more work for less pay. That should not be happening, either.

My hon. Friend the Member for Swansea West (Geraint Davies) raised the issues with the DVLA, which we all remember, and the shameful way in which the former Secretary of State for Transport, the right hon. Member for Welwyn Hatfield (Grant Shapps), handled that situation, with hard-working staff not being treated right. These issues are happening while the Government refuse to negotiate with our civil servants. If we look back to the pandemic, civil servants kept the country going and on its feet, whether by putting emergency measures in place, adjusting to new realities or taking on the mammoth task of dealing with so many different schemes, including furlough. Let us be honest: even now, those civil servants are still working to clear up backlog Britain. We have all seen that backlog in our casework, whether it is with the Home Office, the DVLA or passports. The civil servants are still working to clear it up, and trying to fix the problems of the past 12 years that have been caused by the Government’s mismanagement.

Our public services are at breaking point. That is not the fault of the hard-working public sector staff; it is the fault of the Government, who have failed and let down our valued institutions—the Government who do not value our staff, and who have failed to recruit and retain staff across the public sector. We are now in a situation where civil servants feel that they have no choice but to go on strike. Like many people, they are seeing their bills and the cost of food rise. The hon. Member for Aberdeen North mentioned pasta, potatoes and rice; whenever I get updates from the food banks in my constituency, those are the key items that they want people to drop off. Those basic items are now so expensive, and the truth is that civil servants’ pay is not keeping up with those increases. The Government are more determined to scapegoat workers and avoid fixing a mess that they created than they are to get around the table and negotiate, including in the civil service.

We cannot expect the civil service to be attractive to external employees when civil servants are expected to withstand threats to their jobs. My hon. Friend the Member for Wirral West (Margaret Greenwood) highlighted the fact that just over a year ago, the Government threatened to cut 91,000 jobs across the civil service. That caused endless sleepless nights for those who were worried about the future of their jobs. Thankfully, those plans have been shelved, but given the merry-go-round of Ministers that we have had, how can anyone joining the civil service now be sure that that proposal will not come up again? That uncertainty and real-terms pay cuts are hindering the civil service’s ability to retain and recruit staff. Too often, that results in the false economy of having to rely on external contractors and consultants within the civil service. Year after year, public money is being spent on external consultants, rather than attracting the knowledge that we need in-house and training people to have that knowledge. We have simply outsourced the pay rise that our civil servants need to keep up with the cost of living to the profits of consulting firms. That is a horrific waste of money, resulting directly from 12 years of Government neglect and ideology-driven pay decisions.

When we consider civil service pay, we must look at its impact on equality. There are around half a million civil servants, who are responsible for delivering vast amounts of our public services. It is critical that our civil service is representative of our society as a whole, but we cannot expect it to be representative when pay across the civil service is unequal. My hon. Friend the Member for Cynon Valley mentioned the shocking issues that PACAC explored around racism in the civil service—I hope the Minister and his colleagues will be looking at that—and the shocking fact that the gender pay gap in the civil service increased drastically in 2022, with the median pay gap increasing by almost 70% in just one year. We cannot tackle inequality in society if inequality is entrenched in our civil service.

One point I would like the Minister to come back on is whether he agrees with the Women and Equalities Committee, which reported last year on the ethnicity pay gap—another key issue within the civil service. Does he agree that the first step in addressing the pay disparity is to ensure that ethnicity pay gap reporting is mandatory? I urge him to outline the measures he is taking to address the pay gap in the civil service.

The Government have a responsibility to ensure our public services are run well and our public sector workers are treated fairly. The next Labour Government’s mission will be to grow our economy, ensure that we have high-quality public services and ensure that our workers have better pay and conditions. Labour’s new deal for working people looks to deliver on this mission for the civil service and across society. The cost of living crisis is driving our civil servants to breaking point. It must be a priority for the Government to get to grips with this crisis and ensure that working people do not continue to suffer. Working people need a fair deal. The Government must get around the table to ensure that our public services are not ravaged by the outcomes of 12 years of Conservative failure and mismanagement.

--- Later in debate ---

[Alex Burghart]

The hon. Gentleman will have heard me say that we consider there to be many advantages to this model.

The purpose of Westminster Hall debates is for the Minister to come and listen to what colleagues in the House have to say. It was interesting, listening to the hon. Member for Vauxhall, to hear that a lot of the positions from the Labour Back Benches do not necessarily accord with the position of the Labour Front Bench. I wonder whether one of the things that is happening in this Westminster Hall debate is an internal debate within the Labour party being aired in public. There was no position from the Labour Front-Bench spokesperson on collective bargaining, on the pay offer, or on PCS strike actions.

[Florence Eshalomi]

On this side of the House, we will make sure that we negotiate—sit around the table and address the concerns. It is not for me to say, “This is what we will offer.” It is about sitting down with the unions, outlining the concerns and then coming to a decision.

[Alex Burghart]

I respect the hon. Lady’s position. However, that is not the position that many of her colleagues have taken here today. It is important that the Labour party comes to an agreed position before the next election. If it does not, we will be sure to remind the public that the Labour party does not have a position on this, whereas the Government do.