Civil Service Pay

Debate between Margaret Ferrier and Beth Winter

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.

Public Sector Pay: Proposed Strike Action

Debate between Margaret Ferrier and Beth Winter

Tuesday 1st November 2022 Westminster Hall

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

Such a low pay offer will inevitably lead to disillusion. We are already seeing the detrimental impact of low pay on the NHS workforce. Essential public sector services will struggle to recruit and retain staff, and workers will be drawn to the private sector in the hope of higher wages. Does the hon. Lady agree that Ministers must urgently undertake a full impact assessment before finalising any decisions on a full pay offer?

[Beth Winter]

I thank the hon. Lady, and I will come to that later.

Let me return to my speech. In education there is an unprecedented situation: two major education unions, the National Education Union and NASUWT, voting together alongside the National Association of Head Teachers. In the fire service, over 30,000 members of the Fire Brigades Union are doing the same.

Why is that? The latest statistics show average regular pay growth of 6.2% for the private sector and 2.2% for the public sector—both below inflation, but one much further below it than the other. We are now talking about a potential 1.5 million public sector workers being balloted on the Tories’ low pay agenda.

Working Tax Credit and Universal Credit: Two-Child Limit

Debate between Margaret Ferrier and Beth Winter

Thursday 21st April 2022 Westminster Hall

[Beth Winter (Cynon Valley) (Lab)]

I very much welcome the time allocated to this debate today. It is vital we have this discussion, because the two-child-limit policy is yet another legacy of the low-pay, low-income experience that is the stamp of the Conservative Government. We have already discussed in recent weeks in this building the impact of the real-terms cuts in social security benefits and the minimum wage, and what we all anticipate will be a real-terms public sector pay cut. The debate today has reflected on the first of those: the appalling offer of a 3% increase in social security while inflation is increasing at 7% and could well go up to 10%. That is a real-terms cut in people’s incomes. How people will survive I have no idea.

Some households do not even receive a 3% rise because, under the two-child limit, parents are not entitled to any extra support through universal credit or child tax credit to help with raising a third or subsequent child born after 6 April 2017.

[Margaret Ferrier]

Does the hon. Lady agree that following the Government’s decision to cut universal credit payments, with inflation rates rising astronomically and a real cost of living crisis, a decision to keep the two-child limit is actively pushing children below the poverty line, which will undoubtedly impact on the UK’s levels of social mobility?

[Beth Winter]

I totally agree. Action needs to be taken on all those policies, including reinstating the £20 universal credit uplift and extending it to those on legacy benefits. We need a whole raft of policies to prevent, reduce and tackle the extreme levels of child poverty that currently exist in this country.

I refer briefly to the Child Poverty Action Group and Church of England report commissioned for the fifth anniversary of the two-child-limit policy. It is very clear in saying that the two-child limit breaks the historic link between need and entitlement. The benefit should be an entitlement, but that link, which was the founding principle of our social security system, has been broken. The report is clear that our social security system should support families and give children the best start in life, regardless of how many siblings they have. They are our future and we should invest in our future generations. The report concluded that the Government must remove the two-child limit to allow all children to thrive.

April’s below-inflation benefits rise means that affected families with three children face a further £938 a year shortfall in benefits to cover the basic costs of raising them, on top of the pre-existing £6,205 shortfall from 2021, with larger families facing an even bigger hole in their income. That is absolutely appalling and devastating for millions of families throughout the UK.

The two-child limit restricts child allowances in universal credit and tax credits worth £2,953 per year to the first two children in a family unless the children were born before 6 April 2017, when the policy came into force. As the hon. Member for Glasgow Central (Alison Thewliss) has already outlined, the disparities, inconsistencies and discriminatory practices in terms of who is and is not entitled are completely unfair.

Unless this two-child limit is abolished, the number of children affected will reach 3 million, as more are born under the policy. We currently have 4.3 million children across the UK living in relative poverty. That equates to around nine in every 30 children in a UK classroom.

As the two-child limit is the biggest driver of this rising level of child poverty, CPAG has estimated that it will push another 300,000 children into poverty, and 1 million more into deeper poverty, by 2023-24. By 2026-27, over 50% of children in families with more than two children will be living in poverty—half of the population in poverty.

We already knew in 2019, from the Work and Pensions Select Committee report on the two-child limit, of concerns that it breached not only the Government’s wider responsibility and international commitments to equality but human rights, including the European convention on human rights and the United Nations convention on the rights of the child. Breaching such human rights commitments appears to come easily to this Government, however; we only need to look at the United Nations High Commissioner for Refugees’ comments on yesterday’s Nationality and Borders Bill for another example of that.

One of the core authors of the Child Poverty Action Group report, Dr Ruth Patrick, says:

“the two-child limit is a poverty-producing policy and one which should be removed”,

but what about the voices of the parents who have contributed to those pieces of research? I will quote just one, who says:

“We wear extra layers of clothes as I cannot afford to put the heating on. We shower on a Wednesday and Saturday to reduce energy bills but we shouldn’t have to live like this.”

Nobody should have to live like that, and I am sure the Minister would agree on that point.

As in Scotland, the Welsh Government have tried to take action to counter some of the worst aspects of this policy, the cost of living crisis, and child poverty in Wales, for example through the commitment to extend free school meals to all primary school pupils from September 2022. However, unfortunately, the main problems causing child poverty lie here in Westminster. The Welsh Affairs Committee, on which I sit, recently looked at the benefits system in Wales.