Civil Service (Voluntary Severance)

Debate between Michael McCann and Lord Maude of Horsham

Thursday 8th September 2011 Ministerial Corrections

[Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)]

6. What estimate he has made of the number of civil servants who will leave the civil service on voluntary severance terms in 2010-11.

[Official Report, 7 September 2011, Vol. 532, c. 343.]

Letter of correction from Mr Francis Maude:

An error has been identified in the oral answer given to the hon. Member for East Kilbride, Strathaven and Lesmahagow (Mr McCann) during Cabinet Office Question Time on 7 September 2011.

The full answer given was as follows:

[The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)]

We aim to minimise compulsory redundancy. We reformed the civil service compensation scheme so that, for the first time, voluntary redundancy was more attractive than compulsory redundancy, which was impossibly expensive under the scheme left in place by the previous Government. We estimate that in early 2010-11 11,200 civil servants left the civil service on the new terms.

The correct answer should have been:

Oral Answers to Questions

Debate between Michael McCann and Lord Maude of Horsham

Wednesday 7th September 2011 Commons Chamber

[Mr Maude]

My hon. Friend has raised an important point, and I will be very glad to meet him to discuss it. There is a huge amount we can do to use IT resources much, much better. Far too often in the past, the Government were reinventing the wheel by buying new systems and not reusing what they had already spent money on. That will now cease.

[Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)]

6. What estimate he has made of the number of civil servants who will leave the civil service on voluntary severance terms in 2010-11.

[The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)]

We aim to minimise compulsory redundancy. We reformed the civil service compensation scheme so that, for the first time, voluntary redundancy was more attractive than compulsory redundancy, which was impossibly expensive under the scheme left in place by the previous Government. We estimate that in early 2010-11 11,200 civil servants left the civil service on the new terms.[Official Report, 8 September 2011, Vol. 532, c. 3MC.]

[Mr McCann]

I thank the Minister for that answer. Let me place on record the fact that he will share the objective that all severance packages are voluntary. Nevertheless, I am receiving from civil servants who work in my constituency evidence that they have been dissuaded from volunteering for a redundancy package because parts of their accrued service do not count for the final compensation package. Will the Minister ensure that maximum flexibility is deployed in order to allow us to reach the goal of all departures being voluntary?

[Mr Maude]

I can confirm that staff in the Crown Agents have always been outside the civil service compensation scheme. In April, I used the powers available to me under the scheme rules to allow service in the Crown Agents to count for compensation purposes for the voluntary schemes currently being run by the Department for International Development. I am aware that there are a few cases in which questions have arisen around service before joining the Crown Agents. My officials are actively engaged in clarifying what commitments were made at that time to these staff.

Superannuation Bill

Debate between Michael McCann and Lord Maude of Horsham

Tuesday 14th December 2010 Commons Chamber

[Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)]

Two pieces of information have come out on this. First, we received a Cabinet Office circular from the right hon. Gentleman which sets out in detail how the negotiations went. It specifically makes the point that PCS made a proposal that would have reduced the amount of money being made available to lower paid staff in order to pay for enhanced benefits for those at the higher end of the scale. However, the trade unions have said that that is not the case. In order to give us more information about the negotiation process, can the Minister provide the figures to demonstrate how much would have needed to go to those at the top to cover those enhancements, and how much would have been taken away from those at the bottom?

[Mr Maude]

It is really hard to do that, because, as I pointed out in the letter that I sent to all Members, there were only outline suggestions made by PCS. Back in September, five of the unions—the five not including PCS—wrote to me with some proposals that they had signed up to, and that PCS had declined to sign up to. At their request, we entered into discussions with the five unions, and the ensuing proposals formed the basis of the new scheme that we have developed. They are not totally reflected in the scheme, but they formed the basis for it. I constantly and consistently urged PCS to join that process and to make concrete proposals, but it had declined to sign the letter that the other five unions had signed, despite being asked to do so by the five unions.

That protracted process involved meetings with Mark Serwotka of PCS and Steve Gillan of the POA, at which I urged them to make concrete proposals that would enable us to work towards a full agreement. All that emerged, however, after protracted delays, were outline suggestions. When asked how any additional protection for higher-paid people—not highly paid people, but those above the £23,000 underpin—was to be paid for, the only suggestions were either to lower the underpin, which would have meant that all lower-paid workers would have been penalised, or to reduce the protection available to those over 50. We were not willing to do that because providing protection was a priority for us.

Superannuation Bill

Debate between Michael McCann and Lord Maude of Horsham

Tuesday 7th September 2010 Commons Chamber

[Mr Maude]

All I can say is that it would be rash to make predictions. I can express the hope and aspiration that agreement will be reached. I stand ready to meet the Council of Civil Service Unions at any time, and my officials are engaged in genuine and sustained negotiations and discussions with the unions, which are continuing on an almost daily basis. I have to say that I was discouraged this morning when Mark Serwotka, the general secretary of PCS—a man for whom I have considerable respect—said, when asked whether he would challenge the result in the courts again, that he would do so. That does not bode well for a consensual outcome, and the fact is that five of the six unions had agreed the previous scheme, but the rug was pulled by one union, to the disbenefit of everyone concerned.

I have made it clear that I do not see this Bill as the last word. It remains our desire to reform the scheme by negotiated agreement, so there have been significant and continuing discussions. There are two key goals in the negotiations. The first is to deliver additional protection for lower-paid civil servants, and that has to be done by negotiation—

[Mr Michael McCann (East Kilbride, Strathaven and Lesmahagow) (Lab)]

The Minister has said several times that he aims to protect the lower-paid, but I do not follow his argument. Under the current arrangements, someone who is earning £20,000 a year with 20 years’ service in the civil service would receive £60,000 in compensation. Under the February 2010 deal, proposed by the Labour Government, that individual would have received £58,000 in compensation. Under the present proposals, that civil servant would receive £20,000 compensation. Conversely, someone who is higher paid—for example, £40,000 a year—would receive £120,000 compensation under the current arrangements, given that three years is the maximum payment. Under the February 2010 deal, that amount would have been £60,000 because that was the cap, and under the present proposals it would be £40,000. Can the Minister please explain how the lower-paid will be protected?

[Mr Maude]

rose—

--- Later in debate ---

[Mr Maude]

Almost by definition, if a compulsory scheme offered less work and better terms, no one would take up voluntary redundancy. Voluntary redundancy is better because it can be negotiated and a scheme can be fashioned to meet the precise circumstances of the employing organisation and the work force. It can be designed to be as sensitive as it can be to the particular needs of the situation. Obviously, if a compulsory scheme were more generous than a voluntary one, no one would ever take voluntary redundancy. It is of the essence of any redundancy scheme that voluntary terms should be capable of being more generous. That is why we framed the provision in this way and why part of what we are seeking to achieve in the negotiated comprehensive new scheme is to enable employers in the civil service to configure voluntary redundancy schemes that are more generous than the compulsory scheme.

[Mr McCann]

Will the right hon. Gentleman give way?

[Mr Maude]

I will, but then I will have to make some progress.

[Mr McCann]

I am grateful. Will the Minister confirm that if the negotiations with the civil service unions fail, he will impose the terms that are part of this Bill?