§ Mr. Ralph Howellasked the Chancellor of the Exchequer what is the present overall cost of (a) basic pay 537W and (b) incremental pay in the Civil Service; if he will show total incremental pay as a percentage of pay generally; and if he will compare the cost and percentage appertaining at present with the likely cost of the merit pay schemes proposed in the Megaw report at present rates.
§ Mr. HayhoeAs in a wide range of employments, increments are not an addition to basic pay, the scale as a whole represents the rate for the job. Increments are thus included in the non-industrial Civil Service pay bill which currently stands at about £3.5 billion, excluding over-time payments, allowances and employers' national insurance contributions. The cost of paying additional increments due in the current financial year is estimated to be about £80 million. But the effect on the pay bill should be less than this, due to changes in the Civil Service population during the financial year; new entrants to the Civil Service will be paid on lower incremental points than those they replace.
Following the recommendations of the Megaw report, the Government are considering a number of options for performance-related pay in the Civil Service. However, no decisions have yet been taken and no comparisons can therefore be made between the present cost of increments and the cost of a possible system of merit pay.
§ Mr. Ralph Howellasked the Chancellor of the Exchequer how many civil servants are in receipt of incremental pay; and what percentage of the total of civil service staff this represents.
§ Mr. HayhoeThe number of non-industrial civil servants on incremental scales is about 516,000 and this represents over 98 per cent. of the total. But many of these will not in fact be receiving any further increments because they are already on the maximum of their scale. Thus, the number of non-industrial civil servants due to receive an increment in the current financial year is about 235,000.
§ Mr. Deakinsasked the Chancellor of the Exchequer if wage increases are applied to each point on the incremental scales of Civil Service pay; and, if so, how the amount of each increment has increased over the past five years for clerical officer and assistant secretary grades.
§ Mr. HayhoePay awards apply to all points on incremental scales because it is the scale as a whole which is the rate for the job, but the percentage added on at each incremental point will depend on the particular award. The amounts by which the value of increments have changed over the past five years are shown in the following table for the two grades referred to.
538W
1 April 1977 1 April 1982 £ £ ASSISTANT SECRETARY Maximum 11,209 22,201 10,609 21,480 10,009 20,634 9,409 19,787 Minimum 8,859 18,525 Average value of increments 588 919 CLERICAL OFFICER Main scale Maximum 2,670 5,421 2,580 4,960 2,490 4,634 2,400 4,485
1 April 1977 1 April 1982 £ £ 2,315 4,337 2,230 4,165 2,145 Minimum 2,060 Entry/junior scale Age points: 21 1,970 20 1,870 3,799 19 1,770 3,629 18 1,670 3,458 17 1,452 3,033 16 1,301 2,717 Average value of increments 105 270 Note: Scales shown for 1 April 1977 include the cost of living supplements payable under incomes policy.