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Public Sector: Pay

Volume 494: debated on Thursday 25 June 2009

To ask the Minister for the Cabinet Office if she will take steps to ensure that all increases in senior executive pay in the public sector are below the rate of inflation. (271953)

I have been asked to reply.

Government policy is that all public sector pay settlements should reflect the individual labour market position of each work force, particularly their recruitment and retention position; be consistent with achievement of the Bank of England’s CPI inflation target of 2 per cent.; be affordable for Departments and; represent value for money for taxpayers.

Senior staff have an important role to play in showing leadership in exercising pay restraint. In March 2009, the Government announced that pay awards for senior public sector groups for 2009-10 would be limited to 1.5 per cent. This covers senior civil servants, judges, very senior managers in the NHS and chief executives of non-departmental public bodies.