02 NOV 2017
Public Sector Pay
Thank you for taking the time to email me with regard to public sector pay.
You will I'm sure have noted my own calls to relax the public sector pay cap and this was further explored with the Health Secretary at the Health Select Committee. The economic uncertainty around Brexit seem likely to make the Chancellor cautious in his approach, but I hope that there will room for greater flexibility on public sector pay in the budget later this month.
In the meantime, I hope the following information on this topic from the Treasury is of interest:
Public sector workers deserve to have fulfilling jobs that are fairly rewarded. The Government has confirmed that it will be moving away from the 1 per cent public sector pay policy, towards a more flexible approach on pay.
We still need to deal with our country's debts to ensure we have a strong economy to enable us to invest in our public services. This means that it is vital that we continue to take a balanced approach to public spending.
The Government will consider each specific workforce to ensure pay is set so that the public sector can continue to both attract and hold on to the excellent staff that support our world-leading public services.
Before Ministers make final decisions on pay awards, they will seek the views of the eight independent Pay Review Bodies, which will consider the evidence on how best to ensure they can recruit and retain the very best people within our public services, like giving people more flexibility over their working hours. They will report in spring 2018, at which point the Government will consider their recommendations and announce public sector pay awards for each of those workforces.
Since 2010 the deficit has been cut by two thirds, helping secure our economy for the future. There is more to be done, but thanks to the actions that have been taken to get the public finances back into shape, the Government can now apply greater flexibility to public sector pay. Ministers will continue to ensure that the overall package for public sector workers recognises their vital contribution and ensures that they can deliver world class public services, while also being affordable and fair to taxpayers as a whole
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