§ Dr. McDonaldasked the Chancellor of the Exchequer if he will estimate the number of civil servants whose wages fall below the "decency threshold" set by the Council of Europe as a standard below which remuneration is considered unfair.
§ Mr. Hayhoe[pursuant to his reply, 25 January 1984]: The Council of Europe has not set a "decency threshold". There is an opinion by a committee of experts to the effect that the decent standard of living referred to in article 4.1 of the European social charter should be defined as being 68 per cent. of national full-time adult average earnings. This opinion has not been accepted by the Council of Europe. However, I refer the hon. Member to my replies to her earlier questions.
§ Dr. McDonaldasked the Chancellor of the Exchequer what percentage of all civil servants were earning weekly wages of less than two thirds average male earnings in 1982.
§ Mr. Hayhoe[pursuant to his reply, 23 January 1984, c. 375]: Civil Service pay rates are net of pension contributions and in addition earnings may be increased by overtime payments, bonuses and allowances. Having adjusted for these factors, it is estimated that in 1982 10 per cent. of civil servants (industrials and non-industrials) earned less than £93 which was two-thirds of median male gross earnings in that year. Many of these were young civil servants on age-related pay and if these are excluded the percentage falls to 6.5.
§ Dr. McDonaldasked the Chancellor of the Exchequer if he has studied the research document produced by the 637W Civil Service union and the Low Pay Unit, "Making Ends Meet", a copy of which has been sent to him; and if he will make a statement.
§ Mr. Hayhoe[pursuant to his reply, 23 January 1984, c. 375]: This document's definition of low pay as two thirds of average male earnings is an arbitrary figure. Civil Service wage rates (not earnings) are then measured against this yardstick but such a comparison is misleading and the net effect is to inflate the number of civil servants classified as low paid. Realistic comparison must take account of the fact that average earnings can be expected to be higher than corresponding wage rates because of the effect of overtime, shift payment, London weighting, and so on; moreover, Civil Service wage rates are net of pension contributions.
The 1982 Megaw inquiry into Civil Service pay concluded that low pay is not a matter which can properly be tackled in isolation within the Civil Service. Clearly the Government want increased prosperity for all. But the way to get this is to recognise the crucial links between wage levels, jobs and increased competitiveness. The real remedy for low pay is greater national prosperity founded on competitive industry.
§ Dr. McDonaldasked the Chancellor of the Exchequer if he will estimate the numbers of civil servants earning less than two thirds average male earnings in 1980–81, 1981–82 and 1982–83.
§ Mr. Hayhoe[pursuant to his reply, 23 January 1984, c. 375]: In addition to basic pay, the average earnings of civil servants include overtime payments, shift premia, bonuses and allowances. Furthermore, Civil Service pay is net of pension contributions while outside earnings figures are generally inclusive of pension contributions. Having adjusted for these factors the estimated numbers of civil servants—industrial and non-industrial—earning less than two thirds of median male gross earnings in 1981, 1982 and 1983 are shown in c. 3 of the table. If young civil servants on age-related pay are excluded, the numbers fall substantially as c. 4 of the table demonstrates.
Year Two thirds of median male earnings Estimated number of civil servants earning less than figure in col. 2 £ All staff Excluding staff on age-related pay col. 1 col. 2 col. 3 col. 4 1981 84 67,000 39,000 1982 93 68,000 42,000 1983 100 77,000 49,000
§ Dr. McDonaldasked the Chancellor of the Exchequer if he will estimate the extent of the decline in real terms of the earnings of civil servants in receipt of less than two thirds average male earnings since the change of basis of the Civil Service pay agreements in 1981
§ Mr. Hayhoe[pursuant to his reply, 23 January 1984, c. 375]: No. It is not practicable to determine the change in earnings of a particular cohort of civil servants whose pay will be affected by incremental progression and increases arising from promotion as well as changes in basic pay rates, overtime payments, bonuses and allowances.