Correspondence

SSRB remit letter: 2020 pay round (accessible format)

Published 31 October 2019

Dr. Martin Read CBE
Senior Salaries Review Body
Fleetbank House
2-6 Salisbury Square
London
EC4Y 8JX

28th October 2019

Dear Dr Read,

Senior Salaries Review Body (SSRB) 2020/21 Remit (Senior Civil Service)

I would like to confirm the SSRB’s remit in relation to the SCS during the upcoming pay round for 2020/21. I would like the SSRB to conduct its usual annual review process and make recommendations to the Government on the pay of the SCS remit group from April 2020.

I am grateful to the SSRB for so clearly setting out its focus and priorities through its annual report this year, and was pleased that these closely accord with the Government’s plans for SCS reward in the short to medium term.

This year the Government evidence is planned to primarily focus on the following areas:

• Exploring options and making proposals for a credible capability based salary progression model which supports productivity;
• Reviewing again the SCS pay ranges, having implemented our previously agreed target for minima this year, and considering the appropriate level of pay for SCS at each grade;
• Continuing to review the SCS performance management system in order to make well evidenced changes for the performance year 2021/22;

We will also continue to keep under review the impact of the interaction between Civil Service pensions and the current tax rules on recruitment and retention.

This year I would ask that the following principles be considered when the SSRB makes its recommendations:

• Current and future affordability to the taxpayer;
• Targeting awards to ensure we can recruit and retain the best public servants;
• The approach taken for junior grades in the Civil Service; and
• That higher awards are conditional on proposals for workforce reform and productivity increases.

Public sector wages account for one quarter of total public spending and it is important that public services remain affordable and sustainable in the long term. The Government must balance the need to ensure fair pay for public sector workers with the need to deliver value for money for taxpayers. For those reasons, I expect affordability to be a critical part of your consideration when determining final awards and ask that you ensure that recommendations for pay awards are affordable for all departments. I also request that you describe in your final report what steps you have taken to ensure affordability has been given due consideration when reaching your recommendations.

As confirmed through last year’s Government evidence to the SSRB, employees of the Government Commercial Organisation (GCO) who are members of the SCS or are SCS equivalents fall within the remit of the SSRB, and information about this group as well as proposals on their remuneration, subject to the recommendations of the GCO Remuneration Committee, will be shared with the SSRB this year. Any specific proposals for the Permanent Secretary group will also be shared with the SSRB.

I intend to submit written evidence by early December, with oral evidence to follow in January. I therefore ask you to provide us with your recommendations in the week commencing 6 April.

I place great value on the independent advice of the SSRB and look forward to receiving your recommendations for the SCS. In the interim, I know that, under the direction of the Cabinet Secretary and the Chief Executive of the Civil Service, officials will be working closely with the SSRB and officials within the Office for Manpower Economics to inform your deliberations.

It may be helpful for us to meet in person ahead of oral evidence and I will arrange for my office to be in touch.

Yours sincerely

SIMON HART