PARLIAMENTARY WRITTEN QUESTION
Public Sector: Pay (27 May 2021)

To ask the Chancellor of the Exchequer, if he will publish a copy of the letter sent by the Chief Secretary to the Treasury to the Secretary of State for Business, Energy and Industrial Strategy, dated 12 February 2021 on the scope and extent of the public sector pay pause.

Asked by:
Charlotte Nichols (Labour)

As set out by the Chancellor at the 2020 Spending Review, it is right that public sector pay reflects the economic context. The private sector has been significantly impacted by the Coronavirus in the form of supressed earnings growth and increased redundancies. In order to ensure parity and fairness it is right to temporarily pause pay awards in the public sector as we assess the impact Coronavirus has had on the wider economy and labour market.

There are set exemptions for those working in the NHS and individuals earning less than median earnings of £24,000. For fairness and consistency, the pause applies to all public sector employers save for the exemptions outlined. This includes the Nuclear Decommissioning Authority and the relevant subsidiaries that are classified as public sector by the Office for National Statistics.

The only circumstances when employers should consider departing from the pay pause is when they are able to secure negotiated workforce reforms that are contingent on offering a higher pay award and deliver sustainable and cashable savings for the organisation.

Whilst there is an inherent public interest in transparency and accountability of public authorities like the Treasury, it is important that Ministers are able to discuss issues frankly and openly without fear of release. If Ministerial discussion is inhibited by the prospect of release, the quality of debate is likely to be restricted, which would not be in the public interest.

Answered by:
Steve Barclay (Conservative)
8 June 2021