I have recently been contacted about Civil Service pay and I agree civil servants should be rewarded fairly for the vital work they do across the country, in delivering the Government’s agenda and providing services to the general public. I also appreciate concerns about the cost-of-living crisis and recognise that it is a worrying time for many.
Public sector pay awards do need to carefully balance recognition and reward of public sector workers alongside the budgetary needs of the nation. In the current climate, double-digit pay rises are unaffordable and would sustain higher levels of inflation, which would reduce people's long-term purchasing power, and erode the value of savings. The Government committed to halving inflation in 2023, which it achieved.
Pay arrangements for civil servants below the Senior Civil Service is delegated to departments as separate employers. This has been the case since 1996 as the delegated pay system allows departments to implement pay and reward arrangements tailored to their business needs.
However, the Government recognised that given the economic circumstances, civil servants, particularly those on lower salaries, required an increase in pay. Therefore, the updated Civil Service Pay Remit Guidance for 2023/24 saw the highest percentage pay increase for the Civil Service in 20 years. It set out that civil service organisations could make pay awards of up to five per cent. In addition to this, for 2023/24, departments covered by the Pay Remit Guidance had the flexibility to make a fixed non-consolidated payment of £1,500 to every member of staff at Grade 6 and below.
I hope that last year’s award shows the Government is receptive to pay increases to the Civil Service. However, it is in the country's interests that any further increases are proportionate.