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Civil Service Pay — [Mark Pritchard in the Chair]
07 March 2023
Lead MP
Beth Winter
Responding Minister
Alex Burghart
Tags
EconomyTaxationEmploymentBenefits & Welfare
Word Count: 13361
Other Contributors: 10
At a Glance
Beth Winter raised concerns about civil service pay — [mark pritchard in the chair] in Westminster Hall. A government minister responded.
Key Requests to Government:
The Government should audit pay differentials impacting gender and ethnicity, harmonise pay arrangements within agencies around their main Government Departments, and move towards national pay rates. The Minister needs to commit to constructive talks with PCS to resolve the current dispute. Next week's Budget announcement must reflect a revision of the 2022-23 civil service pay remit that includes a 10% rise and a living wage of at least £15 an hour, without reducing service provision.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The civil service pay remit has led to a crisis in civil service pay, with salaries falling by between 12% and 23% in real terms since 2010. Civil servants are missing out on at least £2,800 this year due to the current pay remit. Over a quarter of DWP staff earn so little that they will benefit from the national living wage floor increase this April. The fragmentation of the pay system has led to significant inequalities and pay differentials across Departments, impacting gender, ethnicity, and regional disparities.
Chris Stephens
SNP
Glasgow South West
He thanks Margaret Ferrier for her emphasis on the issue and expresses concern over the use of food banks by civil servants due to low wages, rising costs, and inflation pressures. Chris Stephens highlighted the civil service's role during the pandemic, including processing universal credit claims and issuing furlough payments. He criticised the disparity in pay rises across the public sector, noting that food inflation is around 13% while some public sector workers are offered only 2% or 3%. Stephens also pointed out that having over 200 separate pay negotiations could lead to equal pay claims. Asked the Minister to confirm that there is only one piece of pay remit guidance and inquired why there are over 200 sets of negotiations across Westminster Government Departments.
Florence Eshalomi
Lab Co-op
Vauxhall and Camberwell Green
Eshalomi highlighted the impact of cost-of-living crisis on civil servants, citing a PCS union survey where 85% reported health impacts due to financial stress. She noted that 40,000 members use food banks and 18% missed work due to transport costs, with 40% relying on credit for essentials. Eshalomi also mentioned the lack of career progression and pay stagnation leading to staff leaving the civil service. Stated the importance of negotiating with unions around a table, outlining concerns and coming to decisions collaboratively rather than imposing offers unilaterally.
Ian Byrne
Lab
Liverpool West Derby
He expressed concern over the civil service pay cuts and low morale, noting that workers have not had a real-terms pay rise for over 11 years. He highlighted that salaries have fallen by between 12% and 23% in real terms since 2010, resulting in a loss of £2,800 annually per civil servant. Byrne mentioned the high rates of food insecurity among civil servants, with one in six people missing meals or going without food due to financial constraints. He also pointed out that 47,000 civil servants are claiming universal credit because their pay is so low.
Jim Shannon
DUP
Strangford
Jim Shannon expressed concerns about the financial difficulties faced by civil servants in his constituency. He noted that while civil service salaries have increased by 3% since 2010, this is less than the median real-terms changes at individual grades and highlighted the issue of staff being promoted to boost their salaries rather than for skill set or responsibility reasons. Shannon emphasised the need for reasonable adjustments to help civil servants manage financial pressures.
Hayes and Harlington
Mr McDonnell expressed concerns about the Government's treatment of civil servants, including cutting their pensions and redundancy payments, and offering a 2% pay increase. He highlighted that for the first time in history, 100,000 civil servants will be on strike due to demoralisation and low real wages. Mr McDonnell urged the government to recognise the seriousness of the situation and implement an inflation-proofing offer immediately. Expressed difficulty with the concept that a pay settlement below inflation could be inflationary, citing an example from the fire brigade. Inquired if the government had considered offering such a settlement to civil servants. Reminded the Minister about the deaths of PCS members during the pandemic, stressed the seriousness of the debate, questioned if the Chair would give way to the Minister, expressed frustration over procedural issues.
Kirsty Blackman
SNP
Aberdeen North
I am concerned about the situation where more than a quarter of DWP staff are paid so little that they rely on universal credit. These workers have been undervalued and underpaid, with many earning below the real living wage. During the pandemic, these employees worked tirelessly to provide essential public services while risking their health. The Scottish National Party is advocating for the real living wage in procurement contracts to ensure fair pay for all public sector workers.
Margaret Ferrier
SNP
Renfrewshire North
She is concerned that nearly half of civil servants earn less than £30,000 and are struggling with rising inflation, living costs, and travel expenses. She warns that the undervaluing of the civil service could lead to a loss of experienced officials.
Wirral West
Margaret Greenwood highlighted the frustration of civil service workers in Wirral West due to a real-terms pay cut, with inflation at around 9% while pay increases were limited to 2% to 3%. She noted that over the last decade, many PCS members have experienced a living standard decline by about 20%, averaging £2,300 less annually since 2011. Greenwood also mentioned that 40% of PCS members are using food banks and 47% are claiming universal credit due to low pay.
Mark Pritchard
Con
The Wrekin
Thanked the hon. Member for her contribution and expressed agreement on the situation faced by civil servants.
Mick Whitley
Lab
Cynon Valley
The Member emphasised the civil service's critical role during the pandemic, highlighting their dedication despite a period of record inflation and a pay rise that is insufficient to cover rising costs. He cited statistics from PCS members indicating significant impacts on physical and mental health, housing worries, and food bank use among civil servants. The Member called for a fair pay rise in the national interest.
Government Response
Alex Burghart
Government Response
It is an honour to serve under your chairmanship, Mr Pritchard. I start by congratulating the hon. Member for Cynon Valley on securing the debate. The Government recognise the hard work of civil servants but reject claims that they are scapegoating them. Civil service pay is determined through separate processes for delegated grades and the senior civil service. In 2021, the Chancellor announced an end to the temporary pay pause starting in 2022-23 due to a strong economic recovery. However, new challenges emerged with higher energy and goods prices leading to cost of living pressures. Last year's civil service pay remit guidance allowed for awards up to 3%, below inflation levels. The Government recognise the strain on civil servants but are focused on managing inflation. Inflation is not being driven by public sector wages; it is an international problem. Taking advice from Labour Members would lead to trouble, as higher pay settlements slow down inflation decline. The Chancellor of the Duchy of Lancaster and Secretary of State noted that decisions must be made within the context of wider pressures on public finances. Salaries for junior grades remain comparable with private or public sector equivalents, and many civil servants benefit from defined benefit schemes. Pay arrangements for delegated grades are delegated to Departments, allowing flexibility in pay awards based on budget priorities. The Government will continue discussions about pay for 2023-24 and hold consultations with the main civil service unions.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.