Source · Select Committees · Public Accounts Committee
Recommendation 14
14
Acknowledged
Departments possess delegated authority to set non-SCS staff pay, governed by central guidance.
Conclusion
As part of their employer responsibilities, departments are delegated the authority to set pay for their staff below SCS level. Each department sets its own pay structure which defines pay rates for each grade. Annual pay increases are governed by the central pay remit guidance issued by the Cabinet Office, which specifies the maximum amount that civil service pay can go up each year.27
Government Response Summary
The government acknowledges the observation and states that a new Civil Service Reward Strategy is under development to create a more coherent, flexible, and individualised reward framework by 2030, alongside a revised pay framework and improved pension offer clarity.
Government Response
Acknowledged
HM Government
Acknowledged
4.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2024 4.2 As set out in the Civil Service People Plan 2024-27, a new Civil Service Reward Strategy is under development. This will outline the steps the government will take to set out a vision of a more coherent, flexible, and individualised reward framework by 2030 that will enable departments to reward excellence in public service delivery, recognise capability in role, enhance productivity and inspire the acquisition of the skills and capabilities needed to support the current, and future, priorities of government. 4.3 Alongside a revised pay framework, which will be achieved through the delivery of an employment offer to ensure that the Civil Service continues to provide a modern and competitive package that is well articulated and accessible, exploring how to provide greater clarity and understanding of the pension offer, so that it is recognised for its true value and meets the needs of an evolving workforce, is also key to attracting and retaining talent. 4.4 The government recognises that under the current delegated model, departments maintain control of their own individual pay systems within the cost parameters set out in the Civil Service Pay Remit Guidance, which limits what can be directed by the Cabinet Office.