Category Archives: Public sector pay

Proposed NHS pay deal: swings now, roundabouts later?

The NHS pay offer is a significant deal that signals the end of the 1% cap on public sector pay rises and as such includes genuine improvements for existing staff. However it also involves future changes that may be less welcome for some. Under the proposed deal, headline rises for those at the tops of their bands are accompanied by changes to the pay structure which mean that staff who have not yet reached the tops of their pay bands would receive significantly higher earnings increases – via progression pay – over the course of the three-year deal. But from 2020 progression for new employees would be more limited than currently. Continue reading Proposed NHS pay deal: swings now, roundabouts later?

Public sector pay: government policy coming under strain

The government’s public sector pay policy is undergoing something of a pressure test. The policy, which limits pay increases to an average of 1% at a time when private sector pay awards are running at twice this figure, is coming under strain from two directions: recruitment and retention, and rising inflation. Continue reading Public sector pay: government policy coming under strain

Viewpoint: Is the Government flexible on pay?

Government policy on pay usually has little direct influence over the private sector. But the current official limit of 1% on public sector pay awards, which has been in place since 2010, has arguably played a part – alongside reductions in public spending – in damping down pay pressures in the wider economy. The policy has of course been made easier to maintain by the fact that inflation has been relatively low over most of the period. Continue reading Viewpoint: Is the Government flexible on pay?