Royal College of Nursing general secretary and chief executive Pat Cullen said the move was a "tacit acknowledgment from ministers they have underpaid nursing staff". The public sector union Unison has warned that a "staffing crisis" in the NHS will worsen unless staff get a bigger rise. The IFS warned: "The continuing fall in public sector pay relative to the private sector poses recruitment and retention challenges for public services, and could threaten the government's ability to deliver on its public service objectives.". "If you went below their recommendations, you'd save a bit of money but what would be the net saving?" When submitting a business case departments must demonstrate they have considered the following headline principles throughout their proposals: The above principles should be met and are applicable specifically to the following business cases: All business cases must also include a detailed plan for implementation, including departmental Trade Union engagement. The extra spending power given to public-sector workers pay is also likely to be spent on energy bills and food, which are costs dictated by global markets. This flexibility is also available to non-ministerial departments and agencies, as well as for public sector workers in non-departmental public bodies (NDPBs), and other arms length bodies, who should submit proposals to the Cabinet Office through their relevant sponsor departments Secretary of State. 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. These may include: Organisations are reminded that all elements which increase paybill cost must be included in the calculation of a pay award, except employer National Insurance contributions and employer pension contributions.The following must be included: As set out above, if a department makes any changes to elements of their paybill this forms part of their total paybill. This is the difference between the projected remuneration cost and the baseline remuneration cost expressed as a percentage of the baseline remuneration cost. This publication is available at https://www.gov.uk/government/statistics/public-spending-statistics-release-february-2023/public-spending-statistics-february-2023, This release presents updated Public Spending data for the years 2017-18 to 2021-22. 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. For the full table, including years from 2017-18 onward, please refer to Table 7 in the accompanying budget tables excel. Exit costs: Enter the exit costs. Check benefits and financial support you can get, Find out about the Energy Bills Support Scheme, Government efficiency, transparency and accountability, Public Spending Statistics release: February 2023, Total Departmental Expenditure Limits, 2021-22 (millions), Real terms public expenditure (billions), Spending frameworks used in HM Treasury spending publications, Revisions in this release (since the November 2022 publication), Additional information about the PSS release, nationalarchives.gov.uk/doc/open-government-licence/version/3, Foreign, Commonwealth and Development Office. Last month, Chief Secretary to the Treasury Simon Clarke told the BBC that "unrealistic expectations around pay" could "intensify this endless inflation problem". A robust and thorough approach will be taken to assessing cases for pay flexibility higher than 3% in 2022/23, particularly cases that seek flexibility for multiple years, for example, to deliver transformational reform. Includes all staff-related costs excluding the cost of staff not on the formal Civil Service payroll, comprising direct wages and salaries, employer pension contributions and employer National Insurance Contributions. In exceptional cases, organisations must seek approval from the Cabinet Office and HM Treasury. NHS Pay Rise 2023. He must make good on this latest pledge to drive up pay for those who kept this country on its feet throughout the pandemic.". Before taking account of inflation, average. Such proposals will be considered where there is a clear case that reforms will generate transformation in departmental and public service delivery, and must be entirely offset by real and cashable savings, and a demonstration of tangible productivity and efficiency gains. Public-sector pay was frozen from 2011-13 and then capped at a 1% annual increase until 2018. Have an opinion on anything youve read in the Guardian today? Direct wages and salaries: The template calculates direct wages and salaries from the sum of pay, allowances, non-consolidated performance (e.g. Requests to increase the size of the non-consolidated performance pay pot, permanently or temporarily, will not be considered. Cabinet Office and HM Treasury will consider requests from departments for pay flexibility proposals where it meets the requirements set out in section 3. Could meltdowns signal a need for self-care? Since privatisation in 2013, Royal Mail workers have counted as private sector workers. No further approval from Cabinet Office or HM Treasury is necessary unless specific arrangements or requirements are already in place, or a department is looking to implement a pay award outside of the remit set by this guidance (such as a pay flexibility business case) at which point they should contact Cabinet Office and refer to the guidance in section 3. The difference is increasing. The economic inactivity rate, which shows how many people are outside the labour market, decreased by 0.2 percentage points in the three months to October from the previous quarter to 21.5%. ($1 = 0.8310 pounds) Reporting by Sachin Ravikumar; editing . The CIPD surveyed 1,006. Express. 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. Proposals should demonstrate that funds are being targeted to ensure there are enough staff to deliver vital public services. 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. If all public sector workers were offered 7% rather than 10%, the total extra bill would come down from 18bn to nearer 12bn about 9bn with extra concessions stripped out. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. In the accompanying excel tables, tables 10 to 11 present spending under the expenditure on services framework. You can unsubscribe at any time. In the accompanying excel tables, table 1 shows the aggregate position for all departments and all types of spending, with some of the main types of spending shown separately. Budget POLL: Should Rishi Sunak increase taxes in his Budget? The government sets pay on a UK-wide level in some areas, such as for the armed forces. 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. The number of vacancies also fell in the three months to October, showing that employers are becoming more circumspect about filling jobs while the economic outlook remains uncertain. Departments should discuss options with the Cabinet Office before formally submitting a business case. These cases must include associated efficiencies and reforms to deliver sustainable savings going forward. It works with departments and agencies on their workforce and reward strategies to encourage them in implementing tailored reward strategies that are consistent with their workforce and business needs, ensuring they are able to attract and retain talent to deliver the Governments priorities and world class public services. 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) that severely risk service delivery, and the degree to which any turnover problems are associated with pay rather than other wider organisational factors. 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. Paybill per head (headcount) is total paybill divided by headcount. This will be welcome news to many Civil Service pensioners who struggle by on average pensions of 9,180 and for women only 6,800. Departments have responsibility for implementing Civil Service pay policy for their workforce in a way that is consistent with the Civil Service pay guidance but also reflects the needs of their business and their labour market position. The Treasury said that freezing pay in 2020-21 had helped "to ensure fairness between the private and public sector". In fact, earnings growth in the year to October was 4.9%, matching consumer price index inflation, in part buoyed up by labour market shortages. Departments should expect to be challenged on whether alternative measures are more appropriate to address the issues they have identified. Proposals must consider how a pay strategy may support delivery of Spending Review workforce priorities, deliver productivity and efficiency gains, cashable savings including through changes to terms and conditions of employment, and other recyclables. Recent developments. This is due to higher levels of expenditure in health for 2020-21, which was largely related to covid-19 measures. Budgets are divided into Departmental Expenditure Limits (DEL), which are firm plans for three or four years, and Annually Managed Expenditure (AME), covering spending which is demand-led, less predictable and more difficult to control. The Treasurys sums dont add up, says the Institute of Fiscal Studies. Chancellor Rishi Sunak will use his Budget on. Departments cannot reduce the IRC by deferring the date of implementation of component increases. The cost of raising individuals to the new rates can be met outside departments pay remit. Departments can also consider a business case to implement the Digital Data and Technology (DDAT) pay framework to address specific recruitment and retention challenges (see below). The news on public sector pay follows the Treasury's announcement that the national living wage will increase from 8.91 to 9.50 an hour from next April. News stories, speeches, letters and notices, Reports, analysis and official statistics, Data, Freedom of Information releases and corporate reports. Departments paying an average award of more than 2% and up to 3% must demonstrate tangible outcomes based plans, with milestones, for progress against delivery of key long term priorities, in their remit to the relevant minister, as set out in section 4.2. It will take only 2 minutes to fill in. But unions for other public sector workers, such as police officers, have been locked in stand-offs over the lack of increases. The cost of any revalorisation must be included in the pay award, i.e. The period for which the approved pay remit applies. All departments should enter data for all three calculations of the IRC: For those departments to whom the below do not apply, the figures will be identical: Those departments that fall under either or both of the above are expected to report the effects of these factors on their IRC by entering outturn and forecast data for all three versions of the IRC. Nurses leaders have said they are prepared to negotiate over the final settlement, but say health ministers have failed to consider the offer. It will take only 2 minutes to fill in. It includes all changes in direct wages and salaries. This year, departments are able to make average pay awards up to 2%. The increase covers over one million NHS staff, as well as school teachers, police officers, prison. Pension contributions: Enter the total cost to the department of pension contributions. Our Standards: The Thomson Reuters Trust Principles. Read about our approach to external linking. In some cases this is subject to demonstration of increased capability (to a particular standard), a satisfactory performance assessment and/or may be a legal entitlement. are well explained and readily accessible, are managed impartially and objectively in the public interest. . 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. Read about our approach to external linking. Further analysis of the different parts of the private sector shows average earnings growing by 7.7% in the finance and business services sector, contrasting with a low rate of 2.8% in manufacturing. Workers continued to be hardest hit in the public sector, where regular pay grew by 2%, compared with 6% in the private sector. Pay review bodies. Published by D. Clark , Feb 14, 2023. Real terms figures are the nominal figures adjusted to 2021-22 price levels using GDP deflators from the Office for National Statistics (released 22 December 2022). Further analysis of the different parts of the private sector shows average earnings growing by 7.7% in the finance and . It covers departmental own spending as well as support to local government and public corporations. 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. The OSCAR system makes provision for the separate collection of data relating to the Senior Civil Service. 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. This analysis excludes pension provision, bonuses and overtime payments, which are not the same in the public and private sectors. If departments require guidance or advice about what constitutes formal negotiation, they should contact the Cabinet Office. Once the annual pay remit has been agreed by the relevant Secretary of State, departments can enter formal negotiations with the trade unions. You have accepted additional cookies. See today's front and back pages, download the newspaper, order back issues and use the historic Daily Express newspaper archive. DDaT business cases will not require HMT ministerial approval. Chief Secretary to the Treasury, John Glen, made a written statement to the House of Commons on public service pensions increase. Departments are reminded of their obligation to comply with their Public Sector Equality Duty when considering pay awards for their staff and the requirements of the HR Functional Standard (including adherence to all legal and regulatory requirements). A 5% rise would cost almost 7 billion pounds ($8.3 billion) more than a 2% rise, but may have to be funded from within existing budgets, the FT said. Please ensure that headcount and FTE are calculated on the required basis for all years, and if necessary enter revised figures. A one year (1 April 2023 - 31 March 2024) pay increase of 1,925 (pro rata for part-time employees) to be paid as a consolidated, permanent addition on all NJC points 2-43 inclusive. [POLL]Michael Gove attacks SNP for taking power away from councils[REPORT]. 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. This covers consultants/interim/agency staff costs not included in the paybill. 6th floor British consumer price inflation hit a 40-year high of 9.1% in May and the Bank of England forecasts it will exceed 11% in October. Civil Service pensions which have been in payment for a year will be increased by 10.1% from 10 April 2023 in line with the September-to-September increase in the Consumer Price Index (CPI). We are a strong voice for civil servants and those in later life. 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. There are no expected changes to the spending frameworks for the next release. DON'T MISSFurious Speaker loses patience as Sunak punished for Budget leaks[INSIGHT]Budget POLL: Should Rishi Sunak increase taxes in his Budget? This is to ensure that cases present no extra cost to the exchequer and no increase to budgetary pressure within departments. A series of strikes has focused attention on the gap between pay in the public and private sectors. 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 TME figures are consistent with data published by the ONS in February 2023. The BBC is not responsible for the content of external sites. in real terms, spending in eight of the ten functions (excluding EU transactions) for 2021-22 increased whilst spending in two functions fell, compared to 2020-21. the largest real terms percentage increase was in general public services (53.2 per cent), mainly as a result of an increase in public sector debt interest. Departments are encouraged to take legal advice on the drafting of any pay commitments to ensure that these are affordable and consistent with this guidance. However, if during subsequent negotiations with Trade Unions there are any significant deviations from those proposals, then these need to be reported to the Secretary of State and, as appropriate, Cabinet Office or HM Treasury before any final agreement is reached.