Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Deferred
Declining real-terms civil service pay for most grades hinders competitiveness and recruitment ability.
Conclusion
Civil service pay for almost all grades has seen a long-term decline. Since 2013, civil service median pay has decreased in real terms for all grades apart from the most junior grade (Administrative Assistant).28 The Cabinet Office recognised that declining real-terms pay was a “chronic” problem affecting the civil service that was “storing up increasing problems of competitiveness with the wider economy”.29 The Cabinet Office further acknowledged there was evidence that pay affected departments’ ability to recruit, citing unattractive pay as the typical reason for failed recruitment campaigns resulting in no appointable candidates.30 It added that government had sought to address the impact of pay on civil service morale. In particular, the Cabinet Office had responded to civil servants’ decreasing satisfaction with pay by making an improved pay offer during 2023, including a one-off £1,500 payment to all civil servants below SCS level.31
Government Response Summary
The government agrees and states a new Civil Service Reward Strategy is under development with an initial target implementation date of Winter 2024, aiming for a flexible reward framework by 2030, but acknowledges departmental control over pay systems.
Government Response
Deferred
HM Government
Deferred
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.