Public Sector Pay Cap

Lord Cormack Excerpts

Wednesday 5th July 2017 Lords Chamber

[Lord Bates]

On that specific point, the Institute for Fiscal Studies has reported that public sector workers earn on average 13% more than those in the private sector. Secondly—this is very important—the purpose of the pay review body is to make sure that we continue to attract people into the public services and deal with employment. That is why it is interesting and helpful to note that a public sector pay review body has said:

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

[Lord Cormack (Con)]

My Lords, as one who has from time to time found himself at odds with government policy, will my noble friend tell his colleagues in the Cabinet that we do not expect them to have their debates in public?

[Lord Bates]

I was just about to say that was above my pay grade and then I realised that was probably not the right term to use. The Chancellor set out the policy on public pay in the Budget. That continues to be the case. We listen very carefully to what the review bodies say and watch very carefully to see the impact that has on recruitment. That policy will continue.