Public Sector Pay 2024-25

The impact of the staffing crisis in the Department for Work and Pensions is creating an 'epidemic of mental ill health' according to emails received by the Public and Commercial Services Union. The situation requires urgent interventions from the Government, one of which needs to be to raise the pay of 25% of PCS union members in the DWP who are currently paid below the real living wage.

Chris Stephens paid tribute to Tony Lloyd and discussed the impact of public sector pay rises on the economy, citing a PCS report highlighting staffing issues in the DWP. He criticized the number of bargaining units within government departments and questioned why staff at the Pensions Regulator were taking industrial action. He also noted that Scotland was providing higher pay rises compared to England.

As a practising NHS doctor, he reminded the hon. Lady that it is beholden on the devolved parts of the United Kingdom—Scotland and Wales—to come to their own pay settlements with the trade unions. He questioned why things are different in Wales. Daniel Poulter intervened to ask Chris Stephens about Labour's Front-Bench position on public sector pay, specifically whether they agreed with Back Benchers that public sector pay should increase by at least the rate of inflation this year. The Welsh Parliament has had income tax-raising powers since 2019. The Minister is asked if the Government will adhere to any recommendations made by the independent pay review bodies for public sector pay this year.

Critiqued the Government for not addressing public sector workers' pay while allowing private entities to profit. Highlighted that since 2010, the cost of living has risen by 73.2%, with mortgage interest rates increasing by 48.5% and food prices rising by 23%. Emphasised that the value of an average public sector worker's wages has declined by 25%.

In response, he stated that Wales is still waiting for consequentials from English settlements with junior doctors and until they know how much money they will receive, it is difficult to decide on the rates of pay. Public sector employment in Arfon is crucial, with 36.6% of workers employed by the public sector, twice the national average. The median gross weekly pay for full-time workers in Arfon is £20.10 less than typical Welsh workers and £58.80 less than the national average. Hywel Williams argues that Wales needs proper funding to meet its unique challenges due to age, illness, disability, and heavy industry legacy. The Welsh Government has not used its income tax-raising powers effectively, while the UK Government has spent extra income tax multiple times over on junior doctors' pay.

Public sector workers have been forced into industrial action due to real-terms pay cuts and high inflation. Since 2009, the value of average public sector wages has declined by 25%, with a total cash loss of £65,000 for individual workers. Austerity measures have cut vital services and pushed many workers into poverty. Civil servants face food insecurity, skipped meals, missed work due to transport costs, and health issues.

Jim Shannon expressed sadness over Tony Lloyd's passing and highlighted the imminent strikes affecting Northern Ireland's schools, public transport, and road gritting services. He stressed that Northern Ireland is underfunded and called for an appropriate increase in Government funding to reflect the Welsh system of funding. Shannon also criticized his Secretary of State for withholding £3.3 billion required for a pay sector increase.

Shared a quote from a DWP worker describing severe burnout and mental health issues due to low pay and high workloads. Cited statistics showing recruitment crises in the NHS, including nursing vacancy rates of 10.36% and decreases in district nurses by 44.4%. Highlighted that one in three public sector workers is considering leaving their profession.

He agreed with his hon. Friend that the crisis in public services cannot be solved unless workers are paid properly. For example, band 2 NHS staff outside London are paid less than the real living wage. In an intervention, Richard Burgon asked the Minister why nursing staff are leaving their profession in droves. He questioned whether it was due to underpayment and overwork or if there were other reasons.

Thanked Members for being brief and succinct, allowing everyone to participate in the debate.

The speaker highlighted the negative impact of the government's policies on public services, noting a 14-year period of low growth, stagnant wages, and high tax burdens. She mentioned that average worker pay is lower now than when the government first came to power, with examples such as the NHS facing significant challenges like waiting lists and school conditions worsening due to crumbling infrastructure.

Public sector pay has been slashed in real terms since 2008, leaving workers struggling to make ends meet. The average public sector worker's wage in 2023 was £12,000 less than it was in 2009. Workers have won 6% increases through industrial action but these amounts are still inadequate due to high inflation rates. There is enough wealth among Britain's billionaires to fund fair pay rises for public sector workers.