Public Sector Pay Cap Debate

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Department: HM Treasury

Public Sector Pay Cap

Jim McMahon Excerpts
Wednesday 5th July 2017

(6 years, 10 months ago)

Commons Chamber
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Elizabeth Truss Portrait Elizabeth Truss
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We need to ensure a continual balance in being fair to the people working in public services—giving them the training and opportunities they deserve, and paying them fairly—while at the same time making sure that they will be able to continue to work in those public services in the future. If we look at what happened in Greece when the deficit got out of control, we can see that there was a 36% reduction in spending on the health service. [Interruption.] Members on the Opposition Front Bench may groan, but they should look at the facts about what happens when unfunded spending commitments are made. Let us be clear: the Institute for Fiscal Studies has said that Labour’s spending plans would lead to the highest levels of taxation we have ever seen in peacetime Britain. Theirs are not moderate but extreme proposals that would lead to people losing their jobs.

Jim McMahon Portrait Jim McMahon (Oldham West and Royton) (Lab/Co-op)
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The Chief Secretary quite rightly outlined that there is more to the package offered to public sector workers, including pensions, but will she confirm that the average pension for a local government worker is less than £80 week? What message does it send when, on top of that, their wages are supressed and their workloads have increased twofold? Is not the truth that this Government know the cost of everything and the value of absolutely nothing?

Elizabeth Truss Portrait Elizabeth Truss
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We care about how well our public services are serving the public, and we want to have highly motivated people working in our public services who feel valued and properly remunerated. That is why such decisions are made by independent bodies.