Public Sector Pay Cap Debate

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Department: HM Treasury

Public Sector Pay Cap

Neil Gray Excerpts
Wednesday 5th July 2017

(6 years, 11 months ago)

Commons Chamber
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Elizabeth Truss Portrait Elizabeth Truss
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My right hon. and learned Friend has a huge amount of experience in this area. He is correct to say that we need to take account of the sustainable, long-term financing of public services. We need to look at the specific issues in each sector where we need to recruit and retain staff, and we also need to look at fairness with the private sector. At the moment, public sector and private sector salaries are roughly comparable. As a country, we need to improve our productivity and our growth rate. That is the way to ensure that everybody benefits. The Government have a fantastic record when it comes to getting people into work, and unemployment is at its lowest level since 1975. We need to make sure that we continue with that.

Neil Gray Portrait Neil Gray (Airdrie and Shotts) (SNP)
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I welcome the Chief Secretary to her place. We had all hoped that today would bring some commitment and certainty from the Government on public sector pay. Instead, our public sector workers continue to be stonewalled from the Dispatch Box, while members of the Cabinet have apparently abandoned collective responsibility to brief for an end to the cap. Perhaps that says more about those Ministers’ desire to undermine the Chancellor and the Prime Minister than it does their commitment to public sector workers. According to The Times, the Prime Minister wanted to announce something today but could not get her Ministers to agree a line.

This week, a report by academics from University College London was published quietly by the UK Government’s own Office of Manpower Economics. The report showed that average hourly public sector wages fell in real terms by 6%—or, for some, by up to £3 an hour—in the past decade. That is perhaps part of the reason why the past decade has been the worst for wage growth in 200 years, and why in-work poverty continues to rise. With that in mind, can the Chief Secretary advise our dedicated police, firefighters, nurses and others—who put their lives on the line and make great sacrifices for us—what they have to do to earn a fair pay rise, as they will do in Scotland? Or does the Chief Secretary support former Prime Minister David Cameron’s comments from Seoul yesterday, when he said that it was “selfish” to campaign for an end to the pay cap?

Elizabeth Truss Portrait Elizabeth Truss
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As I have outlined, pay is determined by a very clear process. Independent pay review bodies make recommendations on areas such as pay for the police and nurses. We will look very carefully at those recommendations to balance fairness for public sector workers, and recruitment and retention of the best possible people, with affordability for the public finances. That is a responsible approach to take, and it will ensure that our economy grows and unemployment continues to move in a positive direction.

--- Later in debate ---
Elizabeth Truss Portrait Elizabeth Truss
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The shadow Chancellor does not like facts to get in the way of his rants.

Neil Gray Portrait Neil Gray
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On a point of order, Mr Speaker. At the start of these proceedings I failed to declare the fact that my wife is a primary school teacher, which I did when I asked a similar question during Cabinet Office questions. I apologise, and I thank you for allowing me to correct the record now.

John Bercow Portrait Mr Speaker
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I am grateful to the hon. Gentleman—as will be the House—for putting that on the record.