Public Sector Pay Cap

Lord Watts Excerpts

Wednesday 5th July 2017 Lords Chamber

[Lord Bates]

That is why we have said that productivity is a key target. But just last year we had the fastest-growing economy in the G7. We have seen incredible growth, otherwise we would not have employment at record levels in this country, with an additional 3 million people in work. Part of the reason is because we have kept a tight grip on the public finances and have seen the deficit reduced by two-thirds. These are important contributions towards maintaining confidence in the economy going forward. However, I accept that we need to work much harder on the area of productivity.

[Lord Watts (Lab)]

What would the Minister say to the public sector workers who are told that there is not enough money to pay them a decent wage, while at the same time the Government can find £1 billion to give to the DUP?

[Lord Bates]

We would say to those people that we have independent pay review bodies which look at these matters. On Northern Ireland, there are historical challenges. Personally, I think that securing stability for the Government going forward is an important part of maintaining that path to growth, enabling us to pay down on the debts and ensure that salaries for both the public and private sectors increase in the future.