Public Sector Pay

Review of the tax arrangements of public sector appointees

On 23 May 2012 the Government published a review of off-payroll engagement in government departments and their arm’s length bodies.

Review and tax arrangement data for government departments

Public sector pay and local labour markets: Budget 2012

At the Autumn Statement 2011, it was announced that the independent Pay Review Bodies (PRBs) would be asked to consider how public sector pay can be made more responsive to local labour markets. The Government has now provided evidence to the Review Bodies on the economic case for local pay reform – and this will be available on the Office of Manpower Economics website. The Review Bodies will report from July 2012.

Office of Manpower Economics website (external, opens in a new window)

Civil service pay guidance 2013-14

The 2013-14 issue of the Civil service pay guidance sets out the process to be followed by all bodies covered by the pay-remit process (main and non-ministerial departments, executive agencies and NDPBs), when planning annual pay awards to their staff and preparing their pay remits for 2013-14.

From 2013-14 departments are required to submit pay data, as set out in Annex C of the guidance, using OSCAR (external, opens in a new window). Guidance will also be made available on the OSCAR homepage.

Civil service pay guidance 2013-14 (PDF 263KB)

Guidance for approval of senior pay in public corporations within the Shareholder Executive portfolio

The Chief Secretary to the Treasury approves pay and remuneration levels of £142,500 per annum and above for all civil service appointments and appointments to public sector bodies which are subject to Ministerial approval. Approval from the Chief Secretary is also required for all bonus payments of £17,500 and above that are subject to Ministerial sign-off. The guidance clarifies the process for seeking approval for appointments in public corporations in the Shareholder Executive portfolio. A separate guidance document has been issued by the Cabinet Office which clarifies how appointments in other parts of the public sector (such as Civil Service or NDPB posts) are covered by the arrangements.

Guidance for approval of senior pay in public corporations within the Shareholder Executive portfolio (PDF 295KB)

Public sector pay and local labour markets: Autumn Statement 2011

At the 2011 Autumn Statement, the independent Pay Review Bodies were asked to consider how public sector pay could better reflect local labour markets. The case for greater local pay flexibility was considered for NHS staff (excluding doctors and dentists), teachers, and prison officers. The armed forces and judiciary were excluded.

The Government received reports from the NHS Pay Review Body (NHSPRB), the School Teachers Review Body (STRB), the Prison Service Pay Review Body (PSPRB) and the Senior Salaries Review Body (SSRB), which made recommendations in relation to very senior managers in the NHS. The Government published these reports at the 2012 Autumn Statement and announced that it will be accepting the key recommendations, including that there should be no new centrally determined local pay rates or zones but that there should be greater use of existing flexibilities. Detailed responses were provided to Parliament by the Secretaries of State for Health, Education and Justice in Written Ministerial Statements.

Pay restraint

The Autumn Statement announced that public sector pay awards will average one per cent for each of the two years following the end of the current pay freeze, and that departmental budgets will be adjusted in line with this policy.

Written Ministerial Statement

On 8 December HM Treasury published these adjustments in a Written Ministerial Statement (PDF 205KB)

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