Downing Street Says » Public sector regional pay

» Monday, June 18, 2012

Public sector regional pay

Asked about the PM’s position on changes to public sector regional pay, the PMS said this issue was still under consideration and so no decision had been made.

When it was put to her that the Chancellor was very keen but the DPM seemed to be against it, she reiterated decisions had not been made. The Chancellor had announced in the Autumn Statement that there was a case for considering how public sector pay could better reflect local labour markets; the independent pay review boards were currently considering the case for greater local pay flexibility in the wider public sector; but nothing had yet been decided. The PMS said that unless there was strong evidence to support it and there was a rational case for it then there would not be any change.

Asked whether MPs should also have this change apply to them, she said that applying the change to MPs was not something the Government was looking at, and this would be a matter for the House.

When it was put to her that the Chancellor seemed very keen but here she was talking about the need for strong evidence and a good case, she said the Chancellor had said there was a case for considering how public sector pay could better reflect local labour markets but unless there was strong evidence and a good case for it, this would not change. Asked if this could be classified as a u-turn in the making, she said seeing as no decision has been made the answer was no.

Asked when a decision could be expected, the PMS advised people to speak to the Treasury.

Asked who decided if there was a strong case, she said let us see what the pay review boards come up with. She said she was not sure who they were reporting to but expected the Treasury would have a strong part to play in any decision.

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