Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, whether he will make an assessment of the potential merits of (a) increasing the Treasury pay remit and (b) refunding the overpaid pension contributions.

Pay for grades below the Senior Civil Service is delegated to departments. Pay awards are made by individual departments, in consideration of their own priorities and affordability, and discussed with their trade unions.

The pay remit guidance is a cost control document and allows departments to seek further flexibility for a pay award above the headline range for pay awards.

It is important that pay awards for civil servants are affordable, as well as fair to both staff and the taxpayer. The pay remit guidance considers economic conditions while balancing the need for sustainable public finances. The 2023/24 guidance will be published next year.

Civil servants are not overpaying pension contributions. Member contribution rates are set via the Cost Control element of the Valuation. The 2016 Valuation was completed on 17 December 2021. It found that there was no ‘breach’ in the Cost Control element, meaning there was no need to adjust benefits or contributions. The valuation process ensures that members receive generous benefits linked to their contributions. The 2020 valuation is ongoing.