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| Public sector workers 'should not necessarily expect 1% pay rise' | Public sector workers 'should not necessarily expect 1% pay rise' |
| (about 1 hour later) | |
| Nurses, police and other public sector workers should not necessarily expect a 1% pay rise, the chief secretary to the Treasury has said. | Nurses, police and other public sector workers should not necessarily expect a 1% pay rise, the chief secretary to the Treasury has said. |
| Greg Hands made the comment in a letter to the pay review bodies, which make independent salary recommendations for around 2.5 million state employees whose ranks also include doctors, soldiers and teachers. | Greg Hands made the comment in a letter to the pay review bodies, which make independent salary recommendations for around 2.5 million state employees whose ranks also include doctors, soldiers and teachers. |
| The Conservative minister said a 1% pay rise for public sector workers set out in the budget should instead be paid in a “targeted manner” – with some getting more and others less than the 1% target. | The Conservative minister said a 1% pay rise for public sector workers set out in the budget should instead be paid in a “targeted manner” – with some getting more and others less than the 1% target. |
| The pay review bodies are currently working on next year’s salary levels, after George Osborne capped the rises at 1% for the next four years. | The pay review bodies are currently working on next year’s salary levels, after George Osborne capped the rises at 1% for the next four years. |
| Ministers also want to tackle “progression pay”, where workers get an automatic salary rise for time in the civil service, and may bring in legislation to address the issue. “The government expects pay awards to be applied in a targeted manner to support the delivery of public services, and to address recruitment and retention pressures,” wrote Hands in a letter to Office of Manpower Economics officials. | |
| He added: “This may mean that some workers could receive more than 1% while others could receive less; there should not be an expectation that every worker will receive a 1% award.” | |
| The letter was addressed to the chairs of the review bodies for the NHS, prison services and police. Doctors, dentists, teachers and the armed forces are also covered. | The letter was addressed to the chairs of the review bodies for the NHS, prison services and police. Doctors, dentists, teachers and the armed forces are also covered. |
| Unions warned that the targeted rises could lead to inequalities among public sector staff. “Because of the pay freeze, civil servants have been facing pay cuts of up to 20% in real terms since 2010. To now receive pay awards of less than 1% could be disastrous,” said a spokesman from the Public and Commercial Services union. | Unions warned that the targeted rises could lead to inequalities among public sector staff. “Because of the pay freeze, civil servants have been facing pay cuts of up to 20% in real terms since 2010. To now receive pay awards of less than 1% could be disastrous,” said a spokesman from the Public and Commercial Services union. |
| Teachers had a pay freeze for the first three years of the coalition government followed by a 1% rise in the following two years. A public sector pay freeze and workforce reform saved £8bn over the last parliament. | Teachers had a pay freeze for the first three years of the coalition government followed by a 1% rise in the following two years. A public sector pay freeze and workforce reform saved £8bn over the last parliament. |
| The head of the senior salaries review board, which recently recommended a 10% pay rise for MPs, also received the letter, which told the independent bodies that they would play “an important role in advising the government on how best to achieve pay reforms”. | The head of the senior salaries review board, which recently recommended a 10% pay rise for MPs, also received the letter, which told the independent bodies that they would play “an important role in advising the government on how best to achieve pay reforms”. |
| Government departments will now submit evidence to the review bodies to suggest how salaries might be set. | Government departments will now submit evidence to the review bodies to suggest how salaries might be set. |
| The chancellor’s first budget under a Conservative government announced that a further £20bn reduction in public spending would be required to deliver a surplus by 2019-20. | |
| The 1% rise is currently above inflation, but there are concerns that a rise in inflation could mean it results in a real-terms cut. | The 1% rise is currently above inflation, but there are concerns that a rise in inflation could mean it results in a real-terms cut. |
| The FDA, the union for senior public servants and professionals, said that the civil service was “creaking under the weight of pay restraint”. | The FDA, the union for senior public servants and professionals, said that the civil service was “creaking under the weight of pay restraint”. |
| “Instead of persisting with thoughtless pay caps and encouraging divisive bidding wars for a share of 1% the government should be engaging in a positive discussion about the setting of public sector pay,” said the FDA’s assistant general secretary, Naomi Cooke. | “Instead of persisting with thoughtless pay caps and encouraging divisive bidding wars for a share of 1% the government should be engaging in a positive discussion about the setting of public sector pay,” said the FDA’s assistant general secretary, Naomi Cooke. |