Civil Service Pay

Margaret Ferrier Excerpts

Tuesday 7th March 2023 Westminster Hall

[Beth Winter (Cynon Valley) (Lab)]

I beg to move,

That this House has considered the civil service pay remit and the future of pay negotiations.

It is a pleasure to serve under your chairship, Mr Pritchard, in this extremely important debate. This is my second Westminster Hall debate on public sector pay and the threat of industrial action as a result of the Government’s decisions in recent months. As we approach Budget day, I want to use the debate to drill down into one area of public sector pay: the civil service.

The civil service employs around half a million people across the UK, ranging from Whitehall mandarins to work coaches in the Department for Work and Pensions and prison officers in the Ministry of Justice. Those people carry out absolutely vital services, and I believe that the long-term trajectory of pay settlements in the civil service exposes the Government’s intentions and the Conservative approach more generally. The civil service pay remit is a political imposition by the Government on the incomes of hundreds of thousands of employees, and the effect of the past 13 years of civil service pay remit decisions has been to create a crisis in civil service pay. What we are witnessing is clearly an intentional and systematic downgrading of the remuneration of work in the civil service. Without doubt, it is part of a Conservative agenda to shrink the state, shrink the share of the economy allocated to public spending, and shrink the share of the economy that rewards labour costs.

The UK civil service has had the lowest pay increases in the public sector since the election of the coalition Government. Analysis of the reduction in civil service pay suggests that salaries have fallen by between 12% and a staggering 23% in real terms at each grade of the civil service since 2010. The Public and Commercial Services Union has said that this year’s pay remit means that members are missing out on at least £2,800 this year, and research by the Prospect trade union has revealed that since 2010-11 a civil servant on a median wage has lost around £10,500, which is staggering.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

I congratulate the hon. Lady on securing the debate. Some 49.7%, or nearly half, of civil servants earn less than £30,000. Many are struggling with the impact of rising inflation and living costs, and rising travel costs to reach work. Does she share my concern that the continued undervaluing of the civil service will lead to officials leaving and a worrying potential exodus of experience and expertise?

[Beth Winter]

I thank the hon. Member for her contribution, and I will come on to recruitment and retention later.

There have been pay freezes and pay caps over the last 13 years. The situation has worsened in the past 12 months because of high rates of inflation and the lower allowance in the civil service compared with other public sector settlements. Civil servants had a paltry 2% pay rise imposed on them in the past year, which is more than 10% below the retail price index at its peak and almost 10% below the consumer prices index.

Civil servants, teachers and nurses have all suffered under the Conservatives’ low-pay agenda, and have all received a completely unacceptable and avoidable real-terms pay cut. The extent of the Conservative Government’s low-pay agenda is laid bare by the high number of civil service staff in receipt of the minimum wage. It is an absolute travesty that over a quarter of DWP staff are paid so little that the national living wage floor increase this April will push their salaries up. It is worth noting that when many Departments contract work, they insist that people get paid at least the real living wage as determined by the Living Wage Foundation, yet the civil service itself point blank refuses to guarantee to pay civil servants at least the real living wage.