§ Sir Graham Pageasked the Minister for the Civil Service if he is yet in a position to make a statement about the arrangements for setting Civil Service pay in 1981.
§ Mr. Channon:My right hon. and noble Friend the Lord President told the Council of Civil Service Unions on 1 August that cash limits, reflecting what the country can afford, rather than pay research, would be the main determinant of the April 1981 pay settlement. Since then, the need for restraint in pay settlements has become even more essential. The Government have therefore decided that the proper course is to suspend the operation of the Civil Service pay agreement and the pay research procedures governed by it for the April 1981 settlement. My right hon. and noble Friend has informed the Council of Civil Service Unions of the Government's decision.