Civil Service Pay

Ian Byrne Excerpts

Tuesday 7th March 2023 Westminster Hall

[Ian Byrne (Liverpool, West Derby) (Lab)]

It is an honour to serve under your chairship, Mr Pritchard. I thank my hon. Friend the Member for Cynon Valley (Beth Winter), who is a good friend, for securing this important debate, and for her excellent speech. I hope I have pronounced her constituency right, or she will kill me.

Although I have no formal interests to declare, I am a proud member of the PCS parliamentary group. I stand in full solidarity with the civil service in Liverpool, West Derby, and across the country, who are taking industrial action as a last resort over their pay, pensions and job security. It was an absolute privilege to stand with civil servants on an historic day at the PCS picket line in Whitehall last month, with quite a number of colleagues from this side of the House. It is a position they should never have been put in.

Workers in the civil service have not had a real-terms pay rise for over 11 years. Salaries have fallen by between 12% and 23% in real terms at each grade since 2010. There would be an uproar among MPs if that happened to them. There has been a sustained pay cut—a disgraceful pay injustice that has resulted in the loss of at least £2,800 a year in pay to individual civil servants. The pay structures across the civil service are fragmented into over 200 bargaining units, a system that the FDA trade union has rightly described as “dysfunctional and broken”.

That broken system has resulted not only in low pay but in wide variations of pay across the service, equal pay issues and a gender pay gap, as well as a recruitment and retention crisis. On top of that, civil servants have been overpaying pension contributions by £500 a year since 2019. The situation is grim.

This Government’s decade of brutal and unrelenting austerity has cut our public services to the bone and forced people who deliver those services into abject poverty. One in six people in my constituency are missing meals or going without food, and that includes many civil servants. In a PCS survey of its members, 35% of respondents said that they had skipped meals because they had no food, 18% that they have had to miss work because they cannot afford transport or fuel to get there, 85% that the cost of living crisis has affected their physical and mental health, and 52% that they are worried about losing their homes as bills and inflation rocket. Forty thousand civil servants are estimated to be regular users of food banks—I have seen that myself in the pantries that we run in Liverpool—and 47,000 are claiming universal credit because the pay is so low.

Let us just reflect on those statistics. The very people we trust to ensure that the social security system works for those in need are now being driven into hunger because of the poverty pay they receive. That encapsulates 13 years of Tory rule, which has driven many members of our public sector staff into poverty. Political choices are being made that have caused so much harm and misery to our communities. I have heard Members say, “Enough is enough,” quite a lot, certainly earlier on in the Chamber for the immigration statement. Let us use those words today to frame this economic injustice for all our loyal public servants; and let us hope the Minister uses them when we talk about that economic injustice.

The Government’s derisory 2% pay offer for 2022-23 is an absolute insult to those civil servants and their families. Inflation is over five times as high, and food inflation is around nine times as high. Trade unions representing staff, including fast streamers, are now taking industrial action as a last resort. One-hundred thousand civil servants will take strike action on Budget day next Wednesday: a day that the Government could use—if they had the political will and leadership, Minister —to announce an inflation-proof pay rise for public sector workers to avoid the strikes.

On Friday, I received a disappointing response from the Minister for the Cabinet Office to my letter raising the issues that I have raised in this debate. In that correspondence, he said that he would

“like to take this opportunity to reiterate…our gratitude for the exceptional commitment Civil Servants and public servants have shown in supporting essential public service delivery during this challenging time.”

Yet, further on in the letter he says that he recognises that the current civil service pay uplift

“will be below current levels of inflation.”

Warm words mean absolutely nothing to civil service staff in West Derby and across the country, who are not being paid enough to live off. I am also extremely disappointed that the Minister for the Cabinet Office appeared to suggest in that letter that pay restraint is somehow linked to getting inflation under control. The FDA’s independent analysis debunks the Government’s claim that public sector pay awards cause inflation. Inflation cannot be caused directly by public sector wage rises, and there is no evidence that this can occur indirectly.

I and my constituents are dismayed by the Minister for the Cabinet Office’s correspondence, and I am appalled by the Government’s overall approach to public sector pay disputes. Rather than taking the mature and robust step of offering an acceptable settlement on pay, terms and conditions, the Government have instead taken the reactionary step of ramping up anti-strike rhetoric and placing regressive legislation against industrial action on the statute book. That is not leadership when it is needed. We must be better than this. Those loyal public sector workers deserve the Minister’s action and support. We urge the Minister today to listen to the demands of civil service staff and their trade unions, and to provide them with pay justice and improved conditions. They and our nation deserve nothing less.