Photo of Cathy Jamieson

Cathy Jamieson (Shadow Minister (Treasury); Kilmarnock and Loudoun, Labour)

To ask the Chancellor of the Exchequer pursuant to the answer of 20 December 2011, Official Report, column 1158W, on public sector: pay, what consideration he has given to a flat rate payment to public sector workers earning less than £21,000.

Photo of Danny Alexander

Danny Alexander (The Chief Secretary to the Treasury; Inverness, Nairn, Badenoch and Strathspey, Liberal Democrat)

At the June 2010 Budget, the Government announced that there would be a two-year pay freeze for those earning the full-time equivalent of £21,000 or above. Those earning less than the full-time equivalent of £21,000 would be paid a minimum of £250 in these years. This policy is now being implemented in the workforces in which Ministers control pay.

At the autumn statement, the Government announced that public sector pay awards will average at 1% for the two years following the pay freeze. The precise award given to employees will be determined according to the normal paysetting processes for each workforce—for example after consulting the independent pay review bodies.

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