Civil Service Pay — [Mark Pritchard in the Chair]

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.

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.

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 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.

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.

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.

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.

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.

Thanked the hon. Member for her contribution and expressed agreement on the situation faced by civil servants.

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.