Correspondence

The Chancellor of the Duchy of Lancaster letter to SSRB (HTML)

Published 22 July 2025

Lea Paterson
Chair, Senior Salaries Review Body
10 Victoria Street
London SW1H 0NB

22 July 2025

Dear Lea,

2026/27 REMIT OF THE SENIOR SALARIES REVIEW BODY (SSRB)

I am writing to confirm the SSRB’s remit for the Senior Civil Service (SCS) during the upcoming pay round for 2026/27.

This Government greatly values the SSRB’s key role in providing independent and evidence-based recommendations and it is important that we continue to work constructively together. This Government continues to strive to ensure that the SCS is equipped to efficiently deliver vital, high quality public service, and drive our ambition for mission-driven government.

We were pleased to be able to accept your recommendations for the SCS for 2025/26 pay awards. As the Spending Review confirmed, all pay must be funded from departmental budgets and there will be no additional funding available for pay settlements. My department’s evidence will set out the funds available to the SCS for 2026 to 2027, following the Spending Review last month, as well as the recruitment and retention context alongside, earnings data, and our future strategic priorities.

We know that public sector workers delivering our vital public services deserve timely pay awards. We announced 2025/26 pay awards two months earlier than last year, and remain committed to bringing 2026/27 pay announcements forwards further. That is why we are launching this pay round two months earlier than the previous pay round. 

To this end, I would be grateful for your support in achieving an earlier pay announcement by submitting your report at the earliest point that allows you to give due consideration to the relevant evidence. I recognise that changing the timeline from recent years will present challenges for you, but I am sure you also share the Government’s belief in the importance of returning to more timely annual pay processes. To enable you to submit your report earlier, our department will aim to cooperate with all your deadlines and bring the evidence process forward.

This year the Government’s evidence will continue to set out our strategic priorities for the SCS workforce, including in relation to pay. This includes setting out our direction for a fundamental review of the SCS pay and reward frameworks, which was recommended by the SSRB in your 2025/26 report and accepted by the Government.

Any specific proposals for the Permanent Secretary group will also be shared with the SSRB. Where any recommendations by the SSRB are made in relation to this group, these will be additionally considered by the Permanent Secretary Remuneration Committee alongside our standard processes.

As has been agreed in recent years’ 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. Information about this group, as well as proposals on their remuneration will be shared with the SSRB this year, subject to the recommendations of the GCO Remuneration Committee.

I look forward to receiving your report in due course.

Yours sincerely,

The Rt Hon. Pat McFadden MP

Chancellor of the Duchy of Lancaster