Pay Research Unit (Hansard, 23 January 1980)

§ 2. Mr. Bruce-Gardyne
asked the Minister for the Civil Service what progress he has made in recruiting new members to broaden the experience of the Pay Research Unit board.

§ Mr. Channon
I have had discussions with the National Staff Side and am considering possible candidates for recommendation to my right hon. Friend the Prime Minister, who is responsible for making the appointments.

§ Mr. Bruce-Gardyne
This is a matter of some urgency. Will my hon. Friend agree that taxpayers in the private sector can hardly be blamed if they look askance at a system which puts a value of 2.6 per cent. on the benefit of index-linked pensions? These are unavailable in the private sector, they would not be allowed by the Inland Revenue even if they were available, and they must be topped up by taxpayers in the private sector. Will my hon. Friend ensure as a matter of urgency that if he must have the investigations of the Government's actuaries investigated by the Pay Research Unit board, that body should include people who are qualified in the business of actuarial computations in the private sector?

§ Mr. Channon
I note what my hon. Friend says. I do not think that the proposal to refer pensions to the Pay Research Board is a good idea. The Government are now considering how best to ensure that independent outside scrutiny can be given to the valuation of pensions.

§ Mr. Straw
Will the Minister say whether the Pay Research Unit board will have anything to do? If a report in The Guardian on Monday is correct, it seems that the Government are considering abandoning pay research as a means of negotiating Civil Service pay. Will the Minister say whether that report is correct?

§ Mr. Channon
It is most unwise for me to comment on speculation in the press. There is a later question on this matter.

§ Mr. Wrigglesworth
But in view of the speculation that has occurred—and which has been enhanced by hon. Members today—about the removal of index linking pensions for policemen, the Armed Forces, teachers and all other public servants, will the Minister tell the House whether the Government are reconsidering index linking for Civil Service pensions?

§ Mr. Channon
I told the House just a few moments ago that we had proposed to refer the question of pensions to the Pay Research Unit board, but now the idea is that we should consider how best an independent outside scrutiny can be given to the valuation of pensions in the public sector.