HC Deb 02 July 1934 vol 291 cc1558-60

asked the Chancellor of the Exchequer if he can now make any statement as to the intention of the Government with regard to the consolidation of bonus and salary in Civil Service?


It is a matter of regret that the negotiations on this subject on the Civil Service National Whitley Council have resulted in the inability of the Staff Side to enter into an agreement with the Official Side on the basis of the proposal made by them with the approval of the Government. The Government have accordingly reviewed the whole position in the light of all the circumstances. They are satisfied that the proposals made are fair and reasonable and that it would be right to put them into operation from the 1st July. An announcement to this effect was accordingly made at the meeting of the National Whitley Council on Friday, the 29th June, and detailed instructions will be issued at an early date. I am circulating in the OFFICIAL REPOET a summary of the proposals in broad outline.


Am I to understand that the Government proposals are being applied without the agreement of the staff side of the Whitley Council?


Yes, Sir.


I beg to give notice that the Opposition will raise this matter at the earliest opportunity on a Vote of Supply.


Can the hon. Member say whether these recom- mendations are, broadly speaking, consistent with the recent report of the Royal Commission?


Yes, Sir, they are.


In view of the very wide dissatisfaction in the Civil Service, can the right hon. Gentleman not find time for a discussion in the House?

Following is the summary:

Consolidation of Civil Service Pay.

Consolidation will be effected as from the 1st July, 1934, on the terms set out in paragraphs 352, 355 and 356 of the Report of the Royal Commission on the Civil Service or with reference to a cost-of-living figure of 55, whichever is more favourable, with the proviso that the remuneration so arrived at shall remain subject to abatement at the appropriate rates so long as half the emergency reductions continue in force. In other words, the pay of a civil servant hitherto remunerated by means of basic pay plus cost-of-living adjustment under the Stabilisation Agreement will be measured (for so long as half the emergency reductions remain in force) as half way between his pay under that agreement and the consolidated pay which would result from the full application of the consolidation scheme.

In the case of those graded clerks and temporary typing staffs whose remuneration has been subject to variation on cost of living grounds pari passu with that of staffs conditioned to basic rates, the general underlying principles of the scheme will apply.

In all cases of established civil servants retiring on or after 1st July, 1934, the full consolidated rate will be deemed to be the annual salary and emoluments of the office within the meaning of Section 2 of the Superannuation Act, 1859, by reference to which pensions, additional allowances and gratuities will be calculated.

In accordance with the terms of Section 4 of the Superannuation Act, 1887, awards of gratuities under that Section or Section 3 of the Superannuation Act, 1914, to unestablished civil servants or their dependants will be calculated upon the pay actually received, i.e., the consolidated rate less the abatement. Whereas hitherto only 75 per cent. of bonus has been reckoned for such awards, gratuities awarded to persons retiring on or after 1st July, 1934, will be calculated upon the full amount of pay actually received.