Public Sector: Pay

Treasury written question – answered on 12th March 2021.

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Photo of Alison McGovern Alison McGovern Shadow Minister (Digital, Culture, Media and Sport)

To ask the Chancellor of the Exchequer, if he will publish (a) a full list of organisations covered by the public sector pay pause and (b) the criteria used to determine which organisations should be covered by that pay pause.

Photo of Steve Barclay Steve Barclay The Chief Secretary to the Treasury

The public sector pay pause announced at the Spending Review 2020 covers most of the major public sector workforces; Police, Prison officers, School-teachers, Armed forces, National Crime Agency, Senior Civil Service, Civil Service and Judiciary.

Given the unique impact of Covid-19 on the health service, and despite the challenging economic context, the government will continue to provide for pay rises for over 1 million NHS workers. The government will also prioritise the lowest paid, with 2.1 million public sector workers earning less than £24,000 receiving a minimum £250 increase.

In order to ensure fairness and consistency of approach, HM Treasury expects other public sector employers not covered by the Pay Review Body process or the Civil Service Pay Remit Guidance, including public corporations and other employers where there is less central oversight of annual pay awards, to respect and comply with the pay pause. Departments and employers should consult the Office for National Statistics classification guidance to confirm whether they are classified as within the public sector.

Pay for Local Government workers and Devolved Administrations is set independently of Central Government and therefore the pause will not directly apply.

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