In the accompanying excel tables, tables 10, 10a and 10b show public sector expenditure on services broken down by function over a longer number of years, allowing long-term trends to be identified. What claims do you want BBC Reality Check to investigate? Departments are encouraged to discuss any potential business case with the Cabinet Office in the first instance at civilservicepay@cabinetoffice.gov.uk. It could be as low as 13bn if the governments fresh concessions for teachers and other groups are factored in as already paid for. Paybill per head (headcount) is total paybill divided by headcount. Monday 12 December 2022 12:45, UK. So 2022 is set to be yet another tough year for public sector employees. Mr Glen stated that public service pensions will be increased from 10 April 2023 by 10.1 per cent, in line with the annual increase in the Consumer Prices Index up to September 2022, except for those public service pensions which have been in payment for less than a year, which will receive a pro-rata increase. He noted that this was because Legislation governing public service pensions in payment requires them to be increased annually by the same percentage as additional pensions (State Earnings Related Pension and State Second Pension)., CSPA General Secretary, Lisa Ray welcomes the increase: We are pleased to see at last the confirmation of public sector pensions increases of 10.1% from the Treasury. Departments, in exceptional cases, can seek targeted pay flexibility to address specific problems associated with recruitment and retention in specific grades and/or professions within their department. This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. In several years since 2010, there have been public sector pay freezes or rises limited to 1%. Well send you a link to a feedback form. 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. "A pay award that is below inflation will be yet another pay cut for hardworking teachers.". Please email us your letter and it will be considered for publication. The figures do not include distortions caused by the. The business case should cover, where relevant: Departments should also work constructively with trade unions on the development of their overall pay and reward strategies and may find it helpful to discuss proposals with trade unions as these are developed. We also welcome departments to consider transformational reform over the Spending Review period when considering long term pay strategy, as set out in section 3. Millions of public sector workers are set to see their wages rise next year, after the government confirmed a pay freeze is being lifted. This does not include on-costs, such as pensions contributions and National Insurance contributions. The OSCAR system makes provision for the separate collection of data relating to the Senior Civil Service. This year has been the worst for real wage growth in nearly half a century, she said. 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. Evidence-based: proposals should demonstrate robust evidence in the form of data to back up the proposals. You're going to have strikes in any event, but that would make things much worse.". Progression pay cost is the cost of moving someone through the pay range and in spine point or step based system relates to the costs of incremental steps. 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. Since privatisation in 2013, Royal Mail workers have counted as private sector workers. In 2022/23, because of staff reductions, the consolidated baseline paybill is reduced to 19 million. 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. Campaigning and protecting the value of the Civil Service pension. 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. In 2020-21, the gap increased somewhat, indicating that the public sector workers on average had a better year than the private sector. Departments are asked to submit these data using the Workforce and Pay Remit (WPR) application in OSCAR for each remit as soon as they are approved, but in any case by 30th September 2022 (if necessary on a provisional basis in the first instance). It is based on National Accounts definitions and covers spending by the whole of the public sector. Average earnings per head (headcount) is direct wages and salaries divided by headcount. The gender pay gap: The Cost of Being a Woman at Work CSPA gives evidence, Civil Service Pension increase due in April, Health and social care crisis: our urgent letter to Steve Barclay. Mr Glen . 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.". They are re-earnable and do not have associated future costs. 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. 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. 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. It therefore has wider coverage than the budgeting framework and is also more stable over time. Women and Work APPG have launched their 2023 annual report: The Cost of Being a Woman at Work with evidence from the Civil Service Pensioners Alliance. From 1 April 2022, departments must ensure that they apply the legislative increase to the National Living Wage (NLW) and National Minimum Wage (NMW). The BBC is not responsible for the content of external sites. The CMI survey showed only about half of firms surveyed between March 31 and April 5 had definitely decided to raise pay this year, with 48% either deciding against a raise or unsure. In milestone and reference-point based systems, progression means the cost of moving staff within the pay range. DON'T MISSFurious Speaker loses patience as Sunak punished for Budget leaks[INSIGHT]Budget POLL: Should Rishi Sunak increase taxes in his Budget? The industry leader for online information for tax, accounting and finance professionals. 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. Delivers efficiencies and productivity: proposals are expected to deliver cost-neutral savings and efficiencies to the paybill which cover the Increase in Remuneration Cost (. Express. It includes the total cost of all staff that are not on the formal Civil Service payroll, including for example, consultants, interim and agency staff. The government is due to unveil this year's pay deal for 2.5 million public sector workers. By. Departments must be satisfied that their proposed reduction will not jeopardise the operation, development or effectiveness of their performance-related pay arrangements. Please ensure that headcount and FTE are calculated on the required basis for all years, and if necessary enter revised figures. GDP Deflator: Financial years 2017-18 to 2021-22 taken from ONS series L8GG in Table N. Dont include personal or financial information like your National Insurance number or credit card details. Nurses have rejected the offer and plan to go ahead with a series of strikes in England, Wales and Northern Ireland in favour of a deal that adds 5% to the retail prices index (RPI) measure of inflation, taking their claim to 19%. The United Kingdom Statistics Authority has designated these statistics as National Statistics, in accordance with the Statistics and Registration Service Act 2007 and signifying compliance with the Code of Practice for Official Statistics. 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. This 2022/23 pay remit year is the first of a three year spending settlement for departments. The government sets pay on a UK-wide level in some areas, such as for the armed forces. pesa.document@hmtreasury.gov.uk. Big pay rises could push prices up, says minister. Equality: Compliance with age discrimination and equal pay legislation, and ensuring an equality impact assessment has been undertaken when developing proposals. Increases in remuneration made specifically to fulfil the legal obligation to include payments for regularly worked overtime in statutory holiday calculations should be considered outside of the headline pay awards, providing that the increases are made only to the extent that they fulfil the legal requirements. The period for which the approved pay remit applies. 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. The assessment of a business case will take into account the individual circumstances of the department. 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. On the other hand, the figures do not reflect the fact that public sector workers tend to have considerably better pension provision than private sector workers. See here for a complete list of exchanges and delays. Recyclable savings are generated when staff leave the department and are replaced by entrants with a lower salary cost. Tax, Salary and Payroll in the UK; UK Average Salaries in 2023; Public Sector Salaries 2023; Salary . On Tuesday, latest official figures showed regular pay for all workers is falling at the fastest rate since 2001, when inflation is taken into account. Total paybill: The template calculates total paybill as the sum of direct wages and salaries, pension contributions and National Insurance Contributions. Dental specialty trainees can further increase their basic salary to 58.398. We also use cookies set by other sites to help us deliver content from their services. Departments who have previously been granted clearance can continue the paybill control system going forward. Average earnings per head (FTE) is direct wages and salaries divided by FTE workforce. Departments must also receive approval from their Permanent Secretary and Human Resources and Finance Directors. 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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. Direct wages and salaries: The template calculates direct wages and salaries from the sum of pay, allowances, non-consolidated performance (e.g. This is the difference between the projected remuneration cost and the baseline remuneration cost expressed as a percentage of the baseline remuneration cost. 1 Horse Guards Road 3%, then further approval is required from Cabinet Office and HM Treasury Ministers. All data and further background detail can be found in the accompanying tables published alongside this release. The deadline to submit a case for the 2022/23 remit year is no later than 1 December 2022. LONDON, July 15 (Reuters) - British Prime Minister Boris Johnson will offer millions of public sector workers pay rises averaging 5% next week, the Financial Times reported on Friday, citing unnamed government ministers. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. 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. 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 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. See here for a complete list of exchanges and delays. Excludes those employees moving between jobs within the department. So 2022 is set to be yet another tough year for public sector employees. 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. And we know that employees in the public sector worked hard during the pandemic, weren't generally furloughed and were less likely to lose their jobs than those in the private sector. Therefore, figures are not directly comparable between 2010-11 and 2011-12. Recent developments. You have accepted additional cookies. Public-sector pay was frozen from 2011-13 and then capped at a 1% annual increase until 2018. The Treasury said that freezing pay in 2020-21 had helped "to ensure fairness between the private and public sector". 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. A DDaT business case should demonstrate savings primarily through the reduction of contingent labour use. Ministers have said they will fund a pay rise of 3% for public sector workers and give nurses an average of 4% in line with a pay review bodys recommendations. Have an opinion on anything youve read in the Guardian today? All data in this release are National Statistics and are on an outturn basis. Requests to increase the size of the non-consolidated performance pay pot, permanently or temporarily, will not be considered. They cover departments own spending as well as support to local government and public corporations. 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. [1] associated with machinery of government changes or repositioning staff within the pay range), transformational pay and workforce reform (including introducing Capability-based pay frameworks), to address recruitment and retention issues (including adopting the Digital, Data, Technology and Cyber pay framework), transfer of funds from the non-consolidated pay pot to consolidated pay. Wed like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. Get in touch, Bitter divisions over Ukraine dominate G20 talks, Greek trains halted as anger over crash grows, Messages reveal battle over UK Covid policy, How 10% of Nigerian registered voters delivered victory, Sake brewers toast big rise in global sales, The Indian-American CEO who wants to be US president, Blackpink lead top stars back on the road in Asia, Exploring the rigging claims in Nigeria's elections, 'Wales is in England' gaffe sparks TikToker's trip. The proposed 3.5% pay increase covers workers including police officers, teachers, judges, nurses, doctors and dentists, many of whom have voted to strike recently over the award they received in the current pay round. 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. The only exceptions to this are Government Communications Headquarters, the Secret Intelligence Service, and the Security Service where there is no Secretary of State with authority to determine pay. When the pay data was adjusted for inflation, pay for all workers fell by 2.7%, cutting living standards at a time of financial stress for millions of people. cost 28bn to prevent inflation eating into public sector wages. Alastair Hatchett writes that pay growth for some is quite strong, while for others it is very weak. The government has announced pay rises for millions of public sector workers as inflation eats into salaries. News stories, speeches, letters and notices, Reports, analysis and official statistics, Data, Freedom of Information releases and corporate reports. These account for hundreds of thousands of workers, who are mostly taking industrial action over pay. spending on health shows a nominal and real terms decrease in 2021-22 (1.1 per cent in nominal terms and 0.3 per cent in real terms). any remaining historic progression increments, cost of increases in the non-consolidated performance pot above its existing proportion of total paybill, non-consolidated payments (except for payments related to performance from the non-consolidated performance pot), buy-out of allowances or non-pay entitlements, incentive payments relating to the implementation of pay reforms, cost associated with changes in non-pay benefits (e.g. Unions are pressing for pay to reflect the cost of living, as inflation rises at the fastest rate for 40 years. Dont include personal or financial information like your National Insurance number or credit card details. 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. In the accompanying excel tables, tables 1 to 9 show central government departmental spending on a budgetary basis. The CIPD surveyed 1,006. If there are significant anomalies in the data, for example because it represents less than a full year of activity, or there are large differences between successive forecast and outturn figures for a particular year, departments should provide a brief explanation, either in the space provided on OSCAR or in an email to the Workforce Pay and Pensions team at HM Treasury (see section 6 for contact details). So the problem with comparing average earnings for the public and private sector is that highly educated professionals would be expected to be earning more. Should public sector workers get bigger pay rises? About 4bn would flow back to the Treasury in higher tax receipts, leaving an extra 5bn bill. There were an estimated 5.77 million employees in the public sector in September 2022, 73,000 (1.3%) more than in September 2021. These include increases in annual leave entitlements, reduction in working hours, etc. HM Treasury has overall responsibility for the Governments public sector pay and pensions policy, and maintaining control over public spending including with regards to departmental spending. 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. Job roles within the public sector includes . Rishi Sunak is set to end the year-long public sector pay freeze for 5.5million workers - but ministers have been warned a hike in wages cannot become a real terms cut swallowed by inflation . 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). The total public sector pay bill in 2021/22 was 233bn. 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 departments looking to introduce a capability-based pay framework, they should contact Civil Service HR Expert Services, contact.cshres@cabinetoffice.gov.uk, for further advice. A spokesperson for Johnson's office declined to comment on the report. The OBR forecast nominal earnings would . HM Treasury will provide guidance in due course with regards to Senior Civil Service or Senior Civil Service equivalent grades. As a result, the difference between public and private-sector pay has narrowed since 2011, such that in 2019-20, there was no gap once you took into account their characteristics. 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. The Treasury had said public sector average weekly earnings rose by 4.5 percent in 2020/21. Following approval from the relevant Secretary of State, departments should enter formal negotiations with their departmental trade unions. Kevin Courtney, the National Education Union's (NEU) joint general secretary said: This is big on promises but short on detail. The prime minister should stop attacking working people trying to defend their pay, and sit down to negotiate fair pay rises with unions, she said. Departments should contact the Cabinet Office for advice if they are unsure whether any changes they are considering would present an IRC. [POLL]Michael Gove attacks SNP for taking power away from councils[REPORT]. Measurable: timelines and milestones must be provided to enable the tracking of the pay reform to ensure savings and impacts are being achieved. Employers in several sectors, including the manufacturing industry, have begun to dismiss workers, pushing up the unemployment rate to 3.7% from 3.6%. Their annual pay remits will continue to require HM Treasury ministerial approval. This framework is used in HM Treasury publications for statistical analysis. Non-consolidated payments other than those related to performance must be included in the IRC calculation. This comes on top of the 7.5% pay increase for 2022/23. 6th floor pensionable pay i.e. 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. Public sector pay growth has lagged that of the private sector, averaging just 1.5% over the past year compared with 8% for the latter. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. 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. Rishi Sunak was called out last week for saying it would cost 28bn to prevent inflation eating into public sector wages. The Government has announced a pay rise for around 2.5 million public sector workers. Canary Wharf In circumstances where Departments wish to take advantage of this flexibility, they are required to seek their own relevant ministers approval before submitting their proposals using the pro forma found in the pay flexibility guidance. The public sector does not increase its charges to reflect higher staff pay, as private-sector firms might. Departments should expect to be challenged on whether alternative measures are more appropriate to address the issues they have identified. Resource . , Organisations should contact their parent or sponsorship department to seek guidance from the Cabinet Office (contact details found in section 6 if unsure whether they are in scope of the guidance. Will take into account the individual circumstances of the baseline remuneration cost and the baseline remuneration cost expressed as percentage! Excludes those employees moving between jobs within the department and are replaced by entrants with a lower salary cost should... 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