§ Mr. CohenTo ask the Chancellor of the Exchequer for which categories of public service employee provision has been made for an average pay rise of more than 1.5 per cent. in the current year; and if he will make a statement.
§ Mr. PortilloThe Government expect public sector pay to be considered in accordance with the approach which the Chancellor announced in his statement of 14 September 1993. In 1994–95 Government Departments are expected to keep their running costs, including pay bills, to their 1993–94 levels in cash terms. A similar approach applies to other public sector pay groups. Provision has been set on this basis. This is not a freeze on pay settlements and does not pre-empt annual pay determination arrangements. Pay should be set at levels necessary to recruit, retain and motivate staff within what can be afforded. All parts of the public sector should be able to make efficiency savings and other economies necessary to accommodate the costs of pay increases on this basis.