§ Mr. KingTo ask the Prime Minister if he will make a statement 'on the Top Salaries Review Body report.
§ The Prime MinisterThe Review Body on Top Salaries —TSRB—has submitted to me the report of its fundamental review of the pay of the posts within their remit groups. These comprise about 1,290 members of the judiciary, 660 senior civil servants, and 190 senior officers in the armed forces. The TSRB last carried out a fundamental review in 1985. I am grateful for the work which it has done on this further review.
The recommendations would add 19.7 per cent. to the pay bill for the remit groups, at a cost of £27.6 million. The Government understand the reasons which underlie these recommendations, which relate to senior people whose work it relies upon and greatly values, but believe that on this occasion there are also wider considerations which they must take into account. The rate of increase in average earnings is now at the lowest level for 25 years, and pay settlements in the private sector are running at around 4 per cent. The economy is moving to a low rate of inflation as the essential basis for resumed and sustained growth. Against this background the Government have decided to moderate the proposed increases.
The increase from 1 April this year will therefore be limited to 4 per cent. The main new rates of pay for 1992–93 are set out in the table. A further 3 per cent. will be paid from 1 April 1993 and a final stage of 2.8 per cent. from 1 April 1994, in addition to whatever annual increase may be decided for those years. The total increase will, therefore, be about half of the recommended level.
287WFor those groups which are covered by performance pay arrangements, individual increases will vary within the overall increases in the pay bill. The Government attach importance to strengthening links between pay and performance, in line with the principles of the citizens charter; I have therefore asked the Chancellor of the Exchequer to discuss with the Chancellor of the Duchy of Lancaster and other Ministers the possibility of extending the performance pay system.
The TSRB has also made a number of additional recommendations affecting the judiciary and senior civil servants. The Government are considering the recommendations on regrouping for the judiciary, but have decided to reject the other recommendations affecting the judiciary and the increase in London pay for grade 3 civil servants.
TSRB remit groups: existing and recommended salaries Group Existing Salary (£) (1 December 1991) Plus 4 per cent 1 April 1992 Judiciary Lord Chief Justice of England 104,750 108,940 Judicial Group 2 (includes Lords Justices of Appeal and President of the Family Division) 97,000 100,880 Judicial Group 3(includes Lords Justices of Appeal and President of the Family Division) 93.000 96.720 Judicial Group 4 (includes High Court Judges) 84,250 87,620 Judicial Group 5 Official Referees 73,250 76,180 Judicial Group 6 — 67,564 Presidents of Industrial etc. Tribunals, Judge Advocate General (new appointments) Circuit judges etc. 61,600 64,064 Judicial Group 7 (includes Chairmen of Industrial Tribunals and Magistrates) 50,500 52,520 Note: The Government is considering the recommendations for regrouping of Senior Circuit Judges etc.
288W
Senior Civil Service Secretary of the Cabinet and Head of the Home Civil Service 104,750 108,940 Permanent Secretary to the Treasury 98,000 101,920 Grade 1 (Permanent Secretary) 84,250 87,620 Grade 1A (2nd Permanent Secretary) 77,500 80,600 Grade 2 (Deputy Secretary) range minimum 60,100 62,504 range maximum 70,400 73,216 Grade 3 (Under Secretary) London range minimum 49,300 51,272 range maximum 57,000 59,280 Elsewhere range minimum 48,000 49,920 range maximum 55,700 57,928
Group Existing salary (£) (1 December 1991) Plus 4 per cent. 1 April 1992 Senior Military Admiral of the Fleet 104,750 108,940 Field Marshal Marshal of the RAF Admiral 84,250 87,620 General Air Chief Marshal Vice Admiral 60,600 63,024 Lieutenant-General Air Marshal Rear Admiral 53,000 55,120 Major General Air Vice-Marshal