Give government workers a fair pay rise

During the pandemic government workers have delivered vital public services and kept our country safe and secure. After ten years in which the real value of civil service pay has fallen, many face hardship. The Government must start to restore the real value of their pay with a 10% increase in 2020.

Government workers are UK civil servants, those working for NDPBs and on outsourced government contracts. Civil service pay has fallen in value by up to 20% over 10 years. Civil servants have been overpaying pension contributions. Government pay policy for 2020 restricts increases to 1.5-2.5%. Government workers have delivered the Job Retention scheme, kept our courts running and our borders secure. It’s time to recognise their contribution and restore the real value of their pay.

The Coronavirus pandemic is the biggest threat the UK has faced in decades, it has clearly had a significant impact on the UK economy. We share this in common with almost every other major country in the world. HM Treasury will continue to take stock of the economy as we move towards the next spending review, planned for later this year.

Civil servants have already demonstrated remarkable commitment to keeping the public safe in the continuing fight against the virus. The ‘Here For You’ campaign has showcased just some of the many ways civil servants across the country have been contributing, and continue to contribute, to the Government's COVID-19 response. Much of the work highlighted in the campaign has been achieved whilst working from home, including such initiatives as HMRC's Employee Retention Scheme.

In order to continue to deliver public services which are vital for the nation, it is important that pay continues to balance rewarding civil servants for their hard work with providing value for money to the taxpayer. In May 2020, public sector pay was up by 3.7% on the year before, compared to a fall of 1.2% in the private sector. Furthermore, this financial year’s public sector pay awards, including those of Civil Service Departments, will be significantly more than the average in the private sector, where the Office of Budget Responsibility’s central scenario assumes a fall in average earnings. This year’s Civil Service Pay Remit Guidance allows departments to make pay awards between 1.5% and 2.5%, achieving a balance that offers fair pay for civil servants, while delivering value for money for the taxpayer.