§ Mr. Warrenasked the Chancellor of the Exchequer what will be the cost of the proposed bonus for civil servants who agree to be paid monthly by credit transfer to bank accounts instead of by cash each week; and if he will make a statement.
§ Mr. HayhoeThe Government, with the support of many employers, are seeking to encourage the use of 527W cashless pay and simplified payroll systems throughout the economy. Most non-industrial civil servants are already paid monthly in arrears by credit transfer into their bank accounts, but some 90,000 civil servants, mostly junior and weekly paid staff, are paid in cash or by payable order, cheque etc.
As from 1 October 1981 new entrants to he non-industrial Civil Service, with a few exceptions, have been required to accept monthly pay by credit transfer as part of their conditions of service. In addition, the Treasury has recently authorised Departments to offer a cash inducement of £100 to existing staff to transfer to cashless pay on a monthly basis, provided the cost can be contained within departmental cash limits. The £100 is mainly intended to help staff over the initial problems of starting bank accounts and changing to monthly budgeting.
If all eligible staff take advantage of the Government's inducement there will be a once-for-all net cost of about £6½million and accruing annual savings in administrative and other costs of about £8 million. As with moves to cashless pay elsewhere in the economy, the move offers benefits to both employer an employee.