Policy paper

Policy statement on Civil Service Measures - June 2023

Published 2 June 2023

The Government is today announcing a package of measures that recognises the vital role played by civil servants in delivering the Government’s agenda and providing services to the public. This package follows representations from the trade unions representing the Civil Service workforce, and the Government believes it constitutes a fair approach that should bring the current disputes with these unions to an end.

In April, the Government published the Civil Service Pay Remit Guidance. This allowed for departments to make average pay awards for 2023/24 of up to 4.5%, with a further 0.5% to be targeted at lower pay bands. This amounted to the highest remit in over 20 years, at a level above the OBR’s forecast for inflation over 2023/24. Nonetheless, the Government recognises the challenges that many civil servants, in particular those on lower salaries, have faced over the last year because of high inflation.

The Government is therefore allowing departments covered by the Civil Service Pay Remit Guidance to make a fixed non-consolidated payment of £1,500 per member of staff, in recognition of the pressures felt during the 2022/23 pay year. Departments making such payments will take the usual steps necessary to do so, including in relation to discussions with their recognised trade unions, with the aim of finalising any decisions as soon as possible. The Senior Civil Service (SCS) is not covered by the Pay Remit Guidance, with SCS pay determined following recommendations from the Senior Salaries Review Body, which has been notified of this additional payment to delegated Civil Service grades, and the Government will receive and consider its recommendations in the usual way. The Government is committed to introducing capability based pay for the SCS, and in order to get its introduction right, will undertake further intensive engagement with trade unions as work continues on its design, with a view to implementing as soon as possible.

In addition, noting its commitment to the reform of the Civil Service Compensation Scheme, the Government recognises the importance of getting any reforms right and managing their introduction. The Government will therefore continue the consultation, but not take any action or make any changes to the Civil Service Compensation Scheme before 2025, and the Supplementary Consultation Document will be updated to reflect this position. Where, in the interim, Civil Service employers do operate an exit scheme as part of a restructure or change programme, the Government also remains wholly committed to supporting Civil Service employers in avoiding the need for compulsory redundancies wherever possible, in accordance with the 2016 Protocol. Employers covered by the Civil Service Compensation Scheme will also be reminded of the need to consider modern working practices as part of redundancy mitigations as required by the Protocol, and the Government will engage further with trade unions and other stakeholders to understand views on the implications for these arrangements of developments in technology and in other workplaces.

Finally, in looking at the right approach to future reward strategy in the Civil Service, the Government intends to draw on the views of trade unions, including with respect to lower paid staff and how best to encourage greater coherence within the delegated Civil Service structures.

The Government believes that this is a significant package of measures, which in combination with the core Pay Remit Guidance for 2023/24 recognises the critical role civil servants play day-in day-out in delivering the Government’s vision for the country.