‘Insulting’ pay freeze for top public-sector employees

PM says leadership must be shown by senior staff in present economic climate

By Alan Jones

Published:

The government was yesterday accused of “insulting” senior staff in the civil service, NHS and elsewhere in the public sector after the prime minister announced a pay freeze under moves to save £3billion in the next three years.

Gordon Brown said it was important in the present economic climate that senior staff in the public sector showed leadership in the exercise of pay restraint.

Senior civil servants, NHS managers, judges, military top brass, GPs and dentists will all have their pay frozen, although other staff in the same sectors will receive wage rises.

The freeze, overturning the recommendations of an independent pay review body, came under fire from professional groups and the FDA union, which said it was an insult to hard-working staff.

The FDA attacked the government for rejecting “modest” structural changes to the pay arrangements of senior civil servants (SCS).

General secretary Jonathan Baume said: “We recognise the grave fiscal crisis facing the country as public expenditure has spiralled out of control. However, the SCS comprises dedicated senior public servants whose professionalism will be essential to lifting Britain out of the economic quagmire over the coming years. It is simply untenable for the government to continue freezing the pay of senior civil servants as a political device year after year.”

Paul Noon, of the Prospect union, said: “There is a glaring contrast between MPs who have just awarded themselves 1.5% and the harsh treatment meted out to the government’s own staff.

“Prospect members will draw their own conclusions at the fairness of a policy which rewards the politicians while cutting the real pay of their staff.”

Jon Restell, chief executive of Managers in Partnership, which represents NHS managers, said: “This announcement is another chip away at the motivation of senior managers in the NHS.

“We know that these are tough times for the British economy, and we know that senior managers must shoulder some responsibility. We hoped for fair treatment but got gesture politics.”

The prime minister said the government had decided to accept some, but not all, of the Senior Salaries Review Body’s recommendations.

A recommendation that the minimum pay for senior civil servants should increase to £61,500 and NHS managers earning under £80,000 should have a 2.25% rise were among those rejected. Mr Brown said: “These tough decisions complement existing measures to reduce the cost of the civil service and protect frontline services.”

After the freeze on the parliamentary and ministerial salaries for all ministers which he announced last week, he said curbs on public-sector pay would save more than £3billion by 2013-14.

Later, the Ministry of Defence announced the pay freeze will only apply to higher ranks. Squaddies and junior officers will receive a 2% increase. A so-called Unpleasant Living Allowance will be extended to cover service personnel at patrol bases in Afghanistan. The pay of prison governors, prison officers and other support grades in England and Wales is to go up 1%.

Salaried GPs and dentists – those employed by hospitals or other GP/dentist contractors – will get a 1% pay rise. Contractor dentists and GPs – who run practices and may employ other people – effectively have their pay frozen.

Health Secretary Andy Burnham said: “In tough times, this package targets the pay rises we can afford to make where they can do most good for patients.

“However, we have taken on board the recommendations of the independent pay review bodies on lower-paid doctors at the start of their careers, who will be getting a special pay supplement.”

Civil servants have been on strike for two days this week in a dispute over cuts to their redundancy pay.