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Public Sector Pay
13 July 2023
Lead MP
John Glen
Debate Type
Ministerial Statement
Tags
DefenceEmploymentForeign Affairs
Other Contributors: 15
At a Glance
John Glen raised concerns about public sector pay in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
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.
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.
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.
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.
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.
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.
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.
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
Shadow Comment
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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