§ Mr. Michael Brownasked the Minister for the Civil Service if he will make a statement about the progress of negotiations to reach a pay settlement with the Civil Service unions.
§ Mr. HayhoeMy right hon. and noble Friend the Lord President of the Council and I met representatives of the354W Council of Civil Service Unions on Monday, 23 February. The unions were informed that the Government's final offer for the April 1981 settlement was an overall increase of 7 per cent. to be financed within the relevant cash limits. As my right hon. and learned Friend the Chancellor of the Exchequer told the House on 18 February, the cash limits include factors of 6 per cent. for pay and 1 1 percent. for prices. The distribution of the increase is a matter for discussion with the unions but since it must be limited to 7 per cent. overall any higher increase for some staff must mean correspondingly less for others. The unions were also told that the Government intend to review the arrangements for determining the pay of non-industrial civil servants with the object of establishing as soon as practicable an ordered and agreed system which takes account of all relevant factors and which will command the widest possible acceptance. The Government are ready to have further discussions with the unions about this.