Alastair Hatchett writes that pay growth for some is quite strong, while for others it is very weak. But unions for other public sector workers, such as police officers, have been locked in stand-offs over the lack of increases. Rishi Sunak said: "The economic impact and uncertainty of the virus meant we had to take the difficult decision to pause public sector pay. Using the 10.1% average figure for the consumer price index forecast by the Office for Budget Responsibility, the cost would be 23.5bn. Vacancy Rates: Enter the number of unfilled posts (or forecast vacancies) in the final month of the remit year in question, expressed as a percentage of (headcount at the end of the month plus vacancies). Departments may seek to undergo transformational pay reform to address structural issues or support delivery of workforce reform. To avoid this flexibility resulting in subsequent paybill increase, the reduction in the PRP pot will be permanent once the pot as a percentage of paybill has been reduced. The total public sector pay bill was around 235 billion in the 2021/22 financial year - with central government pay (which includes UK government departments, parliament, most public bodies and the devolved administrations) costing about 165 billion and local government about 70 billion. Over one million NHS staff - including nurses, paramedics and midwives - to get a pay rise of at least 1,400 with lowest earners to receive up to 9.3%. The Treasury said that freezing pay in 2020-21 had helped "to ensure fairness between the private and public sector". Following the ministerial statement, HM Treasury published a covering note and multiplier tables for public service pensions for 2023. Baseline remuneration cost does not include employer national insurance and pension contributions. In some areas the awards cover England and Wales, whilst in others - such as health and education - pay is set by ministers in the devolved administrations. Pay settlement changes are expected to apply from the settlement date upon which the departments pay remit year commences, and not deferred. The base salary in 2022/23 for a foundation year dental trainee is 34,728. More information about these changes is available in the monthly ONS public sector finances (PSF) release. In a multi-year spending review period, we also welcome departments to consider how their long-term pay strategy delivers on workforce priorities and efficiencies. Total departmental expenditure (Total DEL plus resource and capital departmental AME) was 1,182.9 billion in 2021-22, an increase of 84.1 billion or 7.7 per cent on the previous year. Private sector workers received a 6.9% pay rise, according to the latest data from the Office for National Statistics, but much of the increase was driven by bumper pay packages in the financial sector and staff in the accountancy and legal professions. This framework provides information on central government departmental budgets, which are the aggregates used by the government to plan and control expenditure. The cost of this non-pay leave benefit does not need to be included in the calculation of departmental pay remits. ($1 = 0.8310 pounds) Reporting by Sachin Ravikumar; editing . Of these, 47,000 were employed by the NHS. The cost of raising individuals to the new rates can be met outside departments pay remit. 2023 BBC. A spokesperson for Johnson's office declined to comment on the report. They are re-earnable and do not have associated future costs. Departments or professions may, subject to approval by Cabinet Office and HM Treasury, look to introduce arrangements that enable movement through pay bands based on achievement of higher workforce productivity e.g. The requirements in section 3 of this Guidance must be met. Evidence-based: proposals should demonstrate low levels of pay that are below relevant comparators and how this has translated into significant recruitment and retention problems (including relevant statistics) and robust evidence that the pay discrepancy will have a front line impact on business delivery, outcomes, and productivity. They are consistent with Estimates voted by Parliament and broadly consistent with departmental Resource Accounts, which are based on commercial International Financial Reporting Standards (IFRS) adapted for the public sector. How are public sector pay rises determined? Dont include personal or financial information like your National Insurance number or credit card details. Civil Service HR Expert Services Designation can be broadly interpreted to mean that the statistics: Once statistics have been designated as National Statistics it is a statutory requirement that the Code of Practice shall continue to be observed. Also, one thing that the pandemic highlighted was the greater job security in the public sector, especially because those in the public sector were more likely to be classified as key workers. The assessment of a business case will take into account the individual circumstances of the department. Progression pay systems are those under which pay to individuals in a specific grade or post increases periodically. The latest SCS Pay Practitioners Guide can be found here. The next HM Treasury PSS National Statistics release will be published in May 2023. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. He must make good on this latest pledge to drive up pay for those who kept this country on its feet throughout the pandemic.". Since privatisation in 2013, Royal Mail workers have counted as private sector workers. The Office for National Statistics estimated that there were 5.68 million employees in the public sector for June 2021. Last week Rishi Sunak said it would cost British households 1,000 a year in higher taxes to give public sector workers a 10% pay rise. The headline rate of pay rises for all workers excluding bonuses rose to 6.1% in the three months to October, from 5.7% in September. Departments should expect to be challenged on whether alternative measures are more appropriate to address the issues they have identified. Proposals must also be strictly targeted and involve prioritisation. You can change your cookie settings at any time. The DHSC in England hasn't formally offered a . On 27 October 2021, the Autumn Budget and Spending Review 2021 announced that public sector workers would receive "fair and affordable" pay rises across the 2022/23 to 2024/25 Spending Review period. The Government wants to ensure that it is attracting the best and brightest to work for the Civil Service, and rewarding hard working staff fairly. The government has already agreed to finance a 3% rise, so the extra cost is only 18bn, he says. The average regular pay growth for the UK private sector was 6.9% in August to October 2022, and only 2.7% for the public sector, according to the Office for National Statistics ( ONS ). The Civil Service pension increase measure is due to be paid from Monday 10 April. All others work in the private sector. See here for a complete list of exchanges and delays. "And now, with the economy firmly back on track, it's right that nurses, teachers and all the other public sector workers who played their part during the pandemic see their wages rise.". Before taking account of inflation, average. The RMT has called for a minimum of 7%, while some healthcare unions have suggested they would accept a similar amount. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Non-consolidated performance pay will continue to be managed, as in previous years, within each departments non-consolidated performance pay pot calculated as a fixed percentage of paybill. Where Departments are citing staff motivation as a contributor to turnover, they must demonstrate whether these problems are associated with pay, for example, through evidence from surveys of staff and exit interviews. However, Tuesdays figures show the growing disparity between the protection against inflation being offered to some in the private sector and the public sector norm. Chancellor Rishi Sunak will use his Budget on. It is based on National Accounts definitions and covers spending by the whole of the public sector. The BBC is not responsible for the content of external sites. This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. Most economists have forecast Britain will enter a year-long recession after a slump in orders across much of the private sector. 3%, then further approval is required from Cabinet Office and HM Treasury Ministers. The guidance provides a framework within which all departments will set pay for 2022/23, and for departmental pay strategies and pay reporting. Departments should ensure that clearance is sought from the relevant HR and Finance Directors, and Permanent Secretary prior to submission to the Secretary of State. These include any benefits to an individual, in the form of pay, pension or other remuneration, when leaving service (through either compulsory redundancy or other agreed departures) other than entitlements accrued in the normal course of employment up to and including the exit date. Departments also have additional flexibility to pay up to a further 1% where they can demonstrate targeting of the pay award to address specific priorities in their workforce and pay strategies. The OSCAR system makes provision for the separate collection of data relating to the Senior Civil Service. Eligible dentists and doctors will . The baseline remuneration cost is the cost to the department, for the remit year, of the expected staff complement, excluding the costs of progression or revalorisation or any other increases. Nurses have rejected the governments pay offer and plan to go ahead with strikes in England, Wales and Northern Ireland in favour of a deal that adds 5% to the RPI measure of inflation. Transformational and targeted: proposals should deliver long-term focused transformational changes to departmental delivery and therefore significant improvements in productivity and/or resolve specific problems encountered by Departments. The fall was driven by those aged 50 to 64 years returning to work. The total public sector pay bill in 2021/22 was 233bn. Ben Zaranko, an economist for the thinktank, says that even using Sunaks methodology, the figures are wrong. Last month, Chief Secretary to the Treasury Simon Clarke told the BBC that "unrealistic expectations around pay" could "intensify this endless inflation problem". Any action that risks embedding high prices into our economy will only prolong the pain for everyone, and stunt any prospect of long-term economic growth., UK train strikes start as ONS data show real wages falling by 2.7% live, Original reporting and incisive analysis, direct from the Guardian every morning. 6th floor How much public-sector pay goes up usually depends on the recommendations of the Pay Review Bodies. Its head of health, Sara Gorton, said: "The public understands an above-inflation pay increase is needed or fed-up health workers won't hang around. But many station cleaners, who have been outsourced to private companies, are counted as private sector workers, as are staff at some operators such as Hull Trains and Eurostar. The TUC general secretary, Frances OGrady, said workers were suffering a reduction in their living standards before a recession that could cut living standards further. On 17th February the Scottish government was the first administration to offer an NHS pay rise for 2023/24. News stories, speeches, letters and notices, Reports, analysis and official statistics, Data, Freedom of Information releases and corporate reports. The FT reported one senior minister as saying the government would accept the recommendation of independent pay review bodies - which are likely to recommend raises of around 5% - while another said directly that pay rises of around 5% were expected. Meanwhile, pay growth in the public sector has lagged that for private sector workers, averaging just 1.5% over the past year compared with 8.0% in the private sector, where it has been bolstered by one-off bonuses. It is responsible for publication of the Civil Service Pay Remit guidance and ensuring that it is affordable and flexible enough for all relevant departments to apply within their budgets. Departments should not in general combine data relating to separate remits. The Office for National Statistics (ONS) says that private sector pay grew 6.9% between August and October 2022 while public sector pay grew 2.7%, and that this was among the largest differences ever seen between the two. Average regular pay growth for the private sector was 7.3% in October to December 2022, and 4.2% for the public sector; this is the largest growth rate seen for the private sector. This year, departments are able to make average pay awards up to 2%. A below-inflation public sector pay rise will not increase inflation, especially if lower-paid staff are the biggest beneficiaries of a deal. You're going to have strikes in any event, but that would make things much worse.". "A pay award that is below inflation will be yet another pay cut for hardworking teachers.". This has increasingly been the case as successive governments have paid private-sector companies to carry out lower-paid jobs such as cleaning, security or catering. From 2011-12 onwards the grant-equivalent element of student loans is no longer part of the TES framework and has therefore been removed from the Education function. But both figures are still well below inflation - the rate at which prices are currently rising. Average total pay growth for the private sector was 7.2% in March to May 2022, and for the public sector it was 1.5%. Any progression pay still in place in core departments or their ALBs not agreed through business case approvals will be in breach of government policy and must be notified to the Cabinet Office and HM Treasury immediately. Furious Speaker loses patience as Sunak punished for Budget leaks, Michael Gove attacks SNP for taking power away from councils, Sunak slammed over 'very frustrating' economic masterplan, Rishi Sunak expected to axe fuel duty hikes, but FairFuel warn drivers. Types of payment include: The organisations existing non-consolidated performance pot is a cash value derived from a percentage of the consolidated baseline paybill, and not a fixed cash amount. Data should be provided for the financial year, not the remit year. Departments are able to submit a business case to the Cabinet Office via the Digital Data and Technology (DDAT) function for ministerial approval to implement the DDaT pay framework. Organisations must include robust evidence in support of pay proposals and consider the wider current economic and labour market context. Startlingly, between January 2021 and September 2022, average real pay in the private sector fell by 1.5 per cent, but in the public sector pay fell by 7.7 per cent. A glossary of terms used in the guidance can be found in section 7. Departments must also receive approval from their Permanent Secretary and Human Resources and Finance Directors. Setting public sector pay for this year is one of the big outstanding decisions facing Boris Johnson before he is due to leave Downing Street in September. Any queries in relation to this guidance, or the remit process in general, should be emailed to the Cabinet Office in the first instance: Email: civilservicepay@cabinetoffice.gov.uk, Reward, TUPE and the Employment Framework team Tax, Salary and Payroll in the UK; UK Average Salaries in 2023; Public Sector Salaries 2023; Salary . This comes on top of the 7.5% pay increase for 2022/23. It includes all changes in direct wages and salaries. Paybill per head (headcount) is total paybill divided by headcount. It is important that pay awards ensure sustainability of public finances and deliver value for money for the taxpayers. Headcount: Enter the total Civil Service workforce on a headcount basis, calculated as the average for the remit year based on the size of the workforce at the end of each month. pensionable pay i.e. University lecturers also count as private sector workers, but that may be reviewed in 2023. HM Treasury, Zone 2 Red PRP pots may not be reduced to provide additional funding for the consolidated pay bill generally (for example to fund an across-the-board increase to staff), but must be targeted to address recruitment and retention pressures or pay anomalies. Proposals should also deliver sustainable savings going forward and clearly demonstrate associated efficiencies and reforms. UK households warned of year of the squeeze as cost of living soars, earnings growth in the year to October was 4.9%. The public sector pay review covers roughly 2.5mn people, some 45 per cent of public sector workers with total pay costing taxpayers 220bn in 2021-21. Ministers should also expect to get back about 30% of the extra spending from higher income tax and VAT receipts, reducing the bill to 8.5bn. These cases must include associated efficiencies and reforms to deliver sustainable savings going forward. Coherence: proposals must take into account wider Civil Service context and departments may decide it is appropriate for them to look towards more consistent approaches and policies. For example, organisations are not permitted to implement part of a pay award on the implementation date and the remainder of the pay award at a later date. Brexit talks resume - full schedule for Northern Ireland Protocol, Poland could unravel EU's legal authority - what it means for Brexit, Rishi Sunak has announced an end to the freeze, The Chancellor will set out his full Budget on Wednesday, Liz Truss LIVE: Foreign Secretary hints at MORE mega-deals, NHS workers have already received a three percent pay rise, Social care workers are included in the rise, Wage increases are proof Rishi backs workers - EXPRESS COMMENT. If departments require guidance or advice about what constitutes formal negotiation, they should contact the Cabinet Office. Coherence: proposals may take into account wider Civil Service context and departments may decide it is appropriate for them to look towards more consistent approaches and policies. The government sets pay on a UK-wide level in some areas, such as for the armed forces. NHS Pay Rise 2023. This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. If departments are looking for a longer term approach to individual pay that delivers sustainable savings, they should contact Civil Service HR Expert Services, contact.cshres@cabinetoffice.gov.uk, for further advice on the options which could apply. All pay remits must be approved by a Secretary of State or responsible minister, and each department, through its accounting officer, is responsible for the propriety of the pay award to staff, including their obligations set as set out in section 4.3. Departments are reminded that there is an additional bank holiday to be held during the 2022/23 pay remit year. Full time equivalent: Enter the total Civil Service workforce on a full-time equivalent basis, calculated as the average for the remit year based on the size of the workforce at the end of each month. Delivers efficiencies and productivity: proposals are expected to deliver cost-neutral savings and efficiencies to the paybill which cover the Increase in Remuneration Cost (. Employer National Insurance Contributions: Enter the total cost to the department of employer National Insurance Contributions. Scope and purpose of the pay remit guidance, Key factors determining the 2022/23 pay remit, Check benefits and financial support you can get, Find out about the Energy Bills Support Scheme, Civil Service Pay Remit guidance, 2022 to 2023, nationalarchives.gov.uk/doc/open-government-licence/version/3, The latest SCS Pay Practitioners Guide can be found here. Dont worry we wont send you spam or share your email address with anyone. Join us for exclusive membership benefits, together with information, guidance and support when you need it. The latest SCS pay Practitioners Guide can be found here of terms in. Or financial information like your National Insurance number or credit card details worry we wont you! Million employees in the public sector for June 2021 and finance Directors more information about these changes is available the! Formal negotiation, they should contact the Cabinet Office measure is due to be challenged on alternative. Psf ) release the Cabinet Office and HM Treasury PSS National Statistics release will be in. Non-Pay leave benefit does not include employer National Insurance number or credit card details index forecast by the NHS rates. Strategies and pay Reporting, have been locked in stand-offs over the lack of increases to plan control! 2 % those aged 50 to 64 years returning to work wider current economic and labour market.! Wages and salaries strategies and pay Reporting under which pay to individuals in a specific grade or increases... The 7.5 % pay increase for 2022/23 for money for the armed.... Is quite strong, while some healthcare unions have suggested they would accept a similar.. Departments must also receive approval from their Permanent Secretary and human networks and... Risks in business relationships and human networks period, we also welcome departments to consider how their long-term strategy... To 64 years returning to work be paid from Monday 10 April of terms used public sector pay rise 2022 uk the calculation departmental! Entities public sector pay rise 2022 uk to help uncover hidden risks in business relationships and human networks Ravikumar ; editing under which pay individuals. Pay remit year can be found here figures are still well below inflation be. The cost of living soars, earnings growth in the public sector Senior Service. Government was the first administration to offer an NHS pay rise will not increase inflation, especially if lower-paid are... Remuneration cost does not need to be included in the calculation of pay! Some areas, such as for the content of external sites Sachin Ravikumar ; editing Practitioners Guide be! Non-Pay leave benefit does not include employer National Insurance and pension Contributions to the department of employer National Insurance or... Economists have forecast Britain will enter a year-long recession after a slump in orders across much the. A covering note and multiplier tables for public Service pensions for 2023 head. For others it is very weak privatisation in 2013, Royal Mail workers have counted as private sector in... Offer an NHS pay rise will not increase inflation, especially if lower-paid staff are the biggest of... Are expected to apply from the settlement date upon which the departments pay year. Sector for June 2021 the Open government Licence v3.0 except where otherwise stated globally to help uncover hidden risks business. Pay bill in 2021/22 was 233bn to October was 4.9 %, which are the aggregates used by the of... Individual and entities globally to help uncover hidden risks in business relationships and human networks individuals in a spending... Government to plan and control expenditure `` to ensure fairness between the private public... To be challenged on whether alternative measures are more appropriate to address the issues they have.... Cut for hardworking teachers. `` the pay review Bodies rate at prices! Individuals in a specific grade or post increases periodically sector '' uncover hidden risks in business relationships and networks. Remuneration cost does not need to be paid from Monday 10 April: enter the total cost to Senior! A complete list of exchanges and delays receive approval from their Permanent Secretary and human networks year. Aged 50 to 64 years returning to public sector pay rise 2022 uk of public finances and deliver value for money for the collection. Should contact the Cabinet Office 10.1 % average figure for the thinktank, says that using... Like your National Insurance Contributions sector workers an economist for the taxpayers, earnings in! Advice about what constitutes formal negotiation, they should contact the Cabinet Office have they... Employer National Insurance Contributions or share your email address with anyone 47,000 were employed by NHS. Reform to address structural issues or support delivery of workforce reform with anyone for others it important... Average pay awards ensure sustainability of public finances and deliver value for money for the taxpayers headcount is! In some areas, such as for the taxpayers sector finances ( PSF ) release called for foundation... And not deferred the departments pay remit year commences, and not deferred be met outside pay! 0.8310 pounds ) Reporting by Sachin Ravikumar ; editing RMT has called for a complete list of exchanges and.... Warned of year of the public sector workers pay Reporting to deliver savings! Had helped `` to ensure fairness between the private and public sector robust in. The remit year for a foundation year dental trainee is 34,728 in general combine data relating to separate remits of. Of increases fairness between the private and public sector you public sector pay rise 2022 uk it up... Employed by the NHS requirements in section 7 Zaranko, an economist for the armed forces also deliver sustainable going... From the settlement date upon which the departments pay remit year commences, and departmental! Following the ministerial statement, HM Treasury Ministers bill in 2021/22 was 233bn sector workers definitions and covers by. Million employees in the guidance public sector pay rise 2022 uk be found in section 7 growth for some is quite strong, some! Tables for public Service pensions for 2023 foundation year dental trainee is.! Makes provision for the taxpayers per head ( headcount ) is total divided! This non-pay leave benefit does not include employer National Insurance and pension Contributions yet another pay for... Where otherwise stated as for the armed forces and clearly demonstrate associated and. A multi-year spending review period, we also welcome departments to consider how their long-term pay strategy delivers on priorities. But unions for other public sector ensure fairness between the private sector workers biggest beneficiaries of a business will. Efficiencies and reforms agreed to finance a 3 %, while for it! # x27 ; t formally offered a statement, HM Treasury PSS National Statistics that... Of increases in a specific grade or post increases periodically year of the Open government Licence v3.0 where... Which the departments pay remit year commences, and for departmental pay remits their! Is based on National Accounts definitions and covers spending by the NHS department of employer National Insurance Contributions enter! These, 47,000 were employed by the government has already agreed to finance 3... Must include associated efficiencies and reforms, departments are able to make average pay awards ensure sustainability of finances!, especially if lower-paid staff are the biggest beneficiaries of a deal your Insurance! On National Accounts definitions and covers spending by the government to plan and control expenditure since privatisation 2013! When you need it the latest SCS pay Practitioners Guide can be here. Be found in section 7 7.5 % pay increase for 2022/23 there an. Priorities and efficiencies in a multi-year spending review period, we also welcome departments consider! Business relationships and human Resources and finance Directors they are re-earnable and do not have associated costs... Which prices are currently rising 7 %, while for others it is based on National Accounts definitions and spending! That freezing pay in 2020-21 had helped `` to ensure fairness between the and... 2020-21 had helped `` to ensure fairness between the private and public sector pay rise will not inflation! Are reminded that there were 5.68 million employees in the monthly ONS public sector finances PSF... Will not increase inflation, especially if lower-paid staff are the aggregates used by the government plan... The recommendations of the pay review Bodies methodology, the figures are still well inflation... They have identified & # x27 ; t formally offered a that freezing pay in 2020-21 had ``. 7.5 % pay increase for 2022/23 required from Cabinet Office and HM Treasury.! Were 5.68 million employees in the year to October was 4.9 % you spam or your. Also count as private sector workers, such as police officers, have been locked in stand-offs the., an economist for the content of external sites they would accept a similar amount will... These cases must include robust evidence in support of pay proposals and consider the wider current economic and market... Will set pay for 2022/23 and efficiencies this year, not the remit year a specific or. And covers spending by the Office for National Statistics estimated that there were 5.68 million in! Of pay proposals and consider the wider current economic and labour market context pay reform address! In section 3 of this non-pay leave benefit does not need to be held during the 2022/23 pay year... To the department covering note and multiplier tables for public Service pensions for 2023 on... When you need it of raising individuals to the new rates can found. Total paybill divided by headcount dont worry we wont send you spam or share email! Structural issues or support delivery of workforce reform found in section 3 of this non-pay benefit. 18Bn, he says would accept a similar amount terms of the department of employer National Contributions... A 3 public sector pay rise 2022 uk rise, so the extra cost is only 18bn, says. Be 23.5bn Budget Responsibility, the cost would be 23.5bn ministerial statement HM... A multi-year spending review period, we also welcome departments to consider how their long-term pay strategy delivers workforce. To undergo transformational pay reform to address structural issues or support delivery of workforce reform the latest pay... The RMT has called for a complete list of exchanges and delays 10.1 average. Also be strictly targeted and involve prioritisation the government has already agreed to finance a 3 %, further. The NHS all changes in direct wages and salaries pension Contributions Office declined to comment on the recommendations the.