Public Sector Pay Policy

Rachael Maskell Excerpts

Tuesday 5th June 2018 Westminster Hall

[Chris Stephens]

I thank the hon. Gentleman for that, and as a proud trade unionist myself I look forward to signing the early-day motion that celebrates 150 years of the Trades Union Congress. The point he makes is absolutely right: there is a growing pay gap between the older and younger generations. In addition, there is a real challenge on the gender pay gap.

[Rachael Maskell (York Central) (Lab/Co-op)]

The hon. Gentleman is making an excellent speech. I want to draw attention to another inequality in having a 1% pay cap. The lowest earners who get 1% see only a little increase in their pay, compared with the top of the civil service, where they see a massive increase. Surely that inequality must be addressed.

[Chris Stephens]

I agree with the hon. Lady. As someone involved in the trade union movement, I was particularly of the view that we should look at flat-rate claims as well as percentage claims, so that the low-paid got a bigger pay increase. I will touch on some of the issues around low pay for civil servants later.

I hope that the Minister will agree, however, that having more than 200 different sets of pay negotiations for civil servants in UK Departments is frankly nonsense. Towards the end of May, PCS received correspondence from the Cabinet Office seeking a meeting to discuss the pay claim. In May, the PCS annual delegate conference, which I attended to give the PCS parliamentary group report, discussed the issue of pay.

There are different approaches in these islands, such as those of the NHS and the Scottish Government. Funded pay rises have been made available in those two bodies. In the NHS, an agreement for public sector workers has been reached with unions: a funded increase that will see staff offered long overdue pay rises of between 6.5% and 29% over the next three years. Additional funding of £4.2 billion for that has been agreed by the Treasury, meaning that the increase to the NHS pay bill will not come from within existing budgets.

Policy on public sector pay is devolved in Scotland. In the Scottish Government sector, the PCS is moving towards agreed settlements with the employer across all bargaining areas, which include: those earning under £36,5000 receiving 3% plus progression, or 3% plus 1% non-consolidated for those on the maximum pay rate; progression payments of 2.5% plus an additional top-up to the maximum for those five years in the grade; maternity pay increased to 27 weeks of full pay; paternity pay increased to four weeks of full pay; occupational sick pay extended to include all staff on entry; no compulsory redundancy guarantees being extended; and assurances on equality impact assessments.

The Scottish Government have been flooded with applications from civil servants who are employed by UK Government Departments and see a vacancy for the Scottish Government. In Scotland, people who happen to work for a UK Government Department will see many of their colleagues leave to get a better pay rise by working for the Scottish Government. I hope that as part of the competition in many areas between Scotland and England, the UK Government will increase their pay rises to match those of the Scottish Government.

Civil servants deliver cradle-to-grave services daily, from driving test examinations to collecting tax, running our prisons, supporting our armed services, administering our justice system, staffing our borders, renewing our passports, looking after our museums and galleries, supporting the unemployed into work and maintaining our transport system. The civil service is the engine room of the country. Brexit is a key challenge faced by the country. Clearly, it is essential that the civil service is robust and resourced effectively to face that challenge.

The trade union undertook a consultative ballot of members towards the end of last year. The mandate was clear: members in the civil service are against a continuation of the 1% cap and are willing to take industrial action to demand that. In a 49% turnout, 99% of PCS members voted to reject the pay cap and 80% supported industrial action if required. That campaign will continue apace in 2018 in workplaces and in PCS branches and groups.

--- Later in debate ---

[Rachael Maskell]

Will my hon. Friend give way?

[Grahame Morris]

One last time, and then I will draw my remarks to a close.

[Rachael Maskell]

Does my hon. Friend recognise that many public servants have been down-banded and as a result given up more money and experienced even more detriment than that from the increases of only 1%?

[Albert Owen (in the Chair)]

I call Grahame Morris to wind up.

--- Later in debate ---

[Julian Knight]

My hon. Friend makes a fair point, but it is right and proper that the Government now take into due consideration the independent pay review bodies so that the 1% cap is dispensed with over time. However, I take my hon. Friend’s point in its entirety.

[Rachael Maskell]

Will the hon. Gentleman give way?

[Julian Knight]

I am really conscious of the time. I apologise.

Not only must the public sector modernise to keep pace with the evolving needs and expectations of modern Britons but it is absolutely essential that the civil service is equipped to take on the new responsibilities that will fall to the Government as we exit the European Union. It is worth remembering that the pay freeze has allowed public sector managers facing tough budget constraints to save jobs. I have a problem with the statement made by the hon. Member for Glasgow South West. If Departments pay more than 1%, there will be job losses. In fact, if there had not been pay restraint, we would have had more job losses. The point is that that pay restraint meant we were able to keep more people in employment. That is an important point to make. Many people in the public sector have taken that very much on board, but I know that over time patience has worn thin. I will make one other point about the hon. Gentleman’s speech. I imagine the 200-plus pay negotiations are inefficient, and I want to convey that to the Minister today

Of course, the purpose of austerity is always to return the public finances to a point where we can safely and responsibly start making the investments that Britain needs, and I am glad that the Government are now in a position to reconsider the public sector pay freeze. Nor is pay the only way in which Ministers are investing in civil servants. In a speech on 24 January, John Manzoni, the chief executive of the civil service, set out the sheer scope of the modernisation programme currently under way, and a key part is investing in the people who make the service what it is.

For example, the Digital Academy is equipping 3,000 civil servants a year with new skills that will help to transform the way we deliver services, and the new Data Science Campus in Newport is going to train up to 500 fully qualified data analysts for the Government. That is absolutely crucial at this particular time. A concerted drive to streamline the number of Government buildings will help to ensure that the great majority of civil servants are able to work in modern, collaborative environments that will help them to fulfil their potential. The Assessment and Development Centre, launched in 2016, has assessed more than 1,000 people to help them progress in their careers and make sure that the civil service meets the same professional standards that prevail in the commercial sector.

Such long-term investments will benefit not only service users but civil servants. Providing modern working environments, clear career pathways and strong development support is as important to attracting and retaining the best people as competitive pay.