Commons Sense

House of Commons · Ministerial Statement

Public Sector Pay

13 July 2023 · 15 other contributors

Opened by John Glen Con Salisbury

EconomyEmploymentNHS

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

John Glen raised concerns about public sector pay in the House of Commons. A government minister responded. Other MPs also contributed.

Key points

  • The minister announced the government's acceptance of the independent pay review bodies' recommendations for public sector workers.
  • Inflation is currently at 8.7%, making basic necessities more expensive.
  • The government will provide pay uplifts of 7% for policing and prison officers (7%-12%), 6% for NHS consultants/specialists and junior doctors (6% + 1250 consolidated).

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Government Statement

John Glen

The minister announced the government's acceptance of the independent pay review bodies' recommendations for public sector workers, providing a fair deal without adding to inflation. Inflation is currently at 8.7%, making basic necessities more expensive and necessitating responsible fiscal decisions. The government will provide generous pay uplifts across various sectors: policing (7%), NHS consultants/specialists (6%), junior doctors (6% + £1250 consolidated), prison officers (7%-12%), armed forces (5% + £1000 consolidation), and teachers (6.5%) with additional funding of £1425 million for 2023-25. Funding will be reprioritised within existing budgets, increasing immigration surcharges, raising fees for work/study visas, cutting back on civil service recruitment in MoD until March 2025 to fund armed forces pay rise. The government contrasts its approach with Labour's economic platform and highlights its commitment to sound money principles.

Other contributors (15)
  • Pat McFadden Lab Wolverhampton South East

    Question

    The shadow questions the estimated impact of 'reprioritising' funding on capital investments in schools and hospitals, as well as the effect of recruitment freezes on MoD/NHS recovery programme.

    Minister reply

    The minister clarifies that there will be no new borrowing or spending to fund pay rises. Funding is reprioritised within existing budgets, increasing immigration surcharges and fees for work/study visas. The impact of civil service recruitment freeze in MoD will help fund the armed forces pay rise without affecting overall service delivery.

  • Pat McFadden Lab Wolverhampton South East

    Question

    The shadow Chief Secretary criticised the Government’s economic policy, citing lack of meaningful growth over four years and high inflation. He questioned whether funding for public sector pay rises would lead to cuts in capital investment in schools and hospitals, and what impact the civil service recruitment freeze at MoD will have.

    Minister reply

    The Minister clarified that no new borrowing or frontline cuts are planned as a result of these decisions. He acknowledged challenges but emphasised that this is typical over 13 years with careful decision-making based on evidence-based advice from pay review bodies.

  • Steve Brine Con

    Question

    The MP welcomed the settlement and asked for clarity on whether it will be seen alongside pension announcements and the NHS workforce plan. He also suggested potential refinements to the timetable.

    Minister reply

    The Minister agreed with the importance of pension changes announced in the Budget, which were long requested by the BMA. He confirmed that health and care workers remain exempt from immigration health surcharge.

  • Peter Grant Lab

    Question

    The MP questioned whether the UK economy has been stagnant since before the pandemic, attributing some challenges to Brexit. He highlighted Scottish Government's better deals for public sector workers without strikes and inquired about increases to immigration fees.

    Minister reply

    The Minister disagreed with some points but acknowledged growth levels over two years compared to G7. Visa fee changes are carefully calibrated decisions to avoid additional borrowing, based on evidence from pay review bodies.

  • Richard Fuller Con North Bedfordshire

    Question

    Asks the Chief Secretary to explain the next steps with the productivity review, questioning if Labour supports pay awards and how it affects inflation.

    Minister reply

    Responds by outlining plans for conversations with spending Ministers about driving savings and productivity. Cites IMF estimates suggesting additional spending would be inflationary.

  • Daisy Cooper Lib Dem St Albans

    Question

    Questions the decision to increase health surcharge for recruiting people from abroad, citing economic inactivity and the need for international talent.

    Minister reply

    Responds by noting record migration levels and a plan to get more people back into work. Rejects Lib Dems' proposals as not adding up financially.

  • Philip Hollobone

    Question

    Confirms the details of the 6.5% pay increase for teachers, including the new starting salary and full funding by the Government.

    Minister reply

    Affirms all details provided are correct, emphasising it is a significant pay settlement.

  • Jon Trickett Lab Normanton and Hemsworth

    Question

    Critiques the productivity drive as cuts to services and staff, citing OBR forecast of debt 300% of GDP.

    Minister reply

    Rejects Labour's characterisation, arguing for tough fiscal decisions.

  • Bob Blackman Con Harrow East

    Question

    Welcomes the statement and asks for unions to cease strike action as most leaders have called for Government acceptance of pay review offer.

    Minister reply

    Agrees, expecting union action to end in coming days.

  • Gavin Newlands

    Question

    Critiques UK's fiscal exposure and borrowing compared to other countries, questioning closeness to economic precipice.

    Minister reply

    Rejects criticisms, noting global inflation pressures and Government focus on bringing down inflation.

  • Scott Benton

    Question

    Asks for steps being taken to eliminate public sector waste to ensure sustainability of pay settlements.

    Minister reply

    Outlines productivity review plans, aiming to find better ways to spend taxpayer money efficiently.

  • Ian Mearns

    Question

    Queries specifics on budget reductions within Department for Education and recruitment/retention crisis among teachers.

    Minister reply

    Confirms reprioritising within existing budget, protecting core funding, and noting additional sums through spending review.

  • Lisa Cameron

    Question

    Expresses concern over frontline public servants struggling on minimum wages, seeking fair pay deal.

    Minister reply

    Acknowledges concerns and notes distribution of increases to lower levels within education.

  • Margaret Ferrier

    Question

    Asks about steps being taken to support first-time buyers amidst record high deposit times and stagnant wages.

    Minister reply

    Cites extensive programme by Secretary of State for Levelling Up, Housing and Communities.

Shadow Comment

Pat McFadden

The shadow criticises the government for failing on public services and economy, noting that UK inflation is highest in G7, food prices rising faster than other countries, and long waiting lists. He highlights Labour's record of investment in NHS, shorter wait times, high satisfaction levels, and less industrial action compared to today. The shadow questions the impact of 'reprioritising' on capital investments in schools/hospitals and the effect of recruitment freezes on MoD/NHS recovery programme.

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