HC Deb 09 February 1995 vol 254 cc347-8W
Sir Michael Neubert

To ask the Prime Minister if he will make a statement on the review body reports.

The Prime Minister

The 1995 reports of the review bodies on the pay of schoolteachers, senior civil servants. the senior military, the judiciary, the armed forces, doctors and dentists, nursing staff, midwives, health visitors and the professions allied to medicine have now been published. Copies are available in the Vote Office and the Library of the House. The Government are grateful to the members of the review bodies for the time and care which they have put into the preparation of the reports.

The Government's policy is that increases in pay must be fully met from existing budgets. Pay increases for public sector staff therefore have to be paid for by greater efficiency or by other economies. This position was reaffirmed in the Chancellor of the Exchequer's statement on public sector pay on 14 September 1994, and in the Government's evidence to the review bodies. It is fundamental to the Government's response to their recommendations.

The review bodies have made the following recommendations:

The Armed Forces Pay Review Body has recommended a range of increases in daily rates of between 2.5 and 2.9 per cent., averaging 2.6 per cent. for the various ranks in its remit group. The Review Body for Nursing Staff, Midwives, Health Visitors and Professions Allied to Medicine has recommended a 1.0 per cent. increase in national salary rates to be supplemented by local negotiations on pay and, where appropriate, leads and allowances and/or conditions. The Review Body has said it expects that, in the majority of cases, the outcome of local negotiations would provide improvements for the staff concerned totalling between 1.5 and 3 per cent., including 1 per cent. increase in national rates. The Doctors and Dentists Review Body has recommended pay increases of 2.5 per cent. generally for members of its remit group, and 3 per cent. in the intended average net remuneration of general medical practitioners. It has recommended that Trusts able to conclude local agreements with the profession should proceed accordingly. It also recommends an alternative system of transititional local pay for hospital consultants accepting a divergence from the nationally determined scale subject to a maximum increase of 5 per cent. in consultants' average salary in each Trust. The School Teachers' Review Body has recommended a 2.7 per cent. increase in teachers' pay. The Senior Salaries Review Body has recommended:

  1. (i) an increase of 2.5 per cent. in the budget for performance related pay for civil servants in Grades 2 and 3 and increases in the relevant pay ranges.
  2. (ii) a new pay range for Permanent Secretaries to replace the existing system of spot rates with pay decisions to be made on the basis of advice from a new remuneration committee.
  3. (iii) a range of increases between 2.5 and 3.8 per cent., averaging 3.2 per cent., in the pay of senior armed forces officers.
  4. (iv)a 2.5 per cent. increase in the pay of the judiciary.

The Government have taken their decisions on these recommendations on the basis of our approach to public sector pay. We accept the recommendations and propose to implement them from the due date of 1 April. The costs will be met from the public expenditure totals published at Budget time. There will be no new money to finance these pay increases, and for the third year running there will be no call on the reserve.

The Government in particular welcome and support the recommendations of the Review Body for Nursing Staff, Midwives, Health Visitors and Professions Allied to Medicine for the development of local pay determination for members of its remit groups. Negotiations with the staff sides at national level need to be concluded quickly to facilitate additional local payments. The Doctors' and Dentists' Review Body has reaffirmed its support for moves towards local pay determination and negotiations are being held with the professions on changes to the distinction awards scheme for consultants which should lead to much greater local involvement. The review body had advocated brisk progress and both sides expect these negotiations to be concluded in the next few months.

I am making a separate announcement on the arrangements for determining the pay of individual permanent secretaries.

Summary of Main Pay Recommendations
Main pay increases per cent. Paybill cost1 £ million Per cent.
DDRB (Doctors and Dentists) 22.5–3.0 144 2.9
NPRB (Nurses and Allied Professions) Nurses and Midwives 1.5–33.0 117–234 1.5–3.0
PAMs 1.5–33.0 15–31 1.5–3.0
All NAPRB groups 1.5–33.0 132–265 1.5–3.0
SSRB (Senior Civil Service, Military and Judiciary) CS Grades 2–3 4— 1.2 2.5
Senior Military 2.5–3.8 0.4 3.2
Judiciary 2.5 3.9 2.8
All SSRB groups 5.5 2.7
AFPRB (Armed Forces)5 2.5–2.9 140 2.6
STRB (School Teachers) 2.7 294 2.7

Notes:

(1) Pay bill costings include employers' national insurance and superannuation payments.

(2) Plus up to 2.5 per cent. on average salaries for consultants under trasitional local pay arrangements

(3) Comprising 1 per cent. on national pay scales and the NPRB estimate of additional amounts likely to result from local pay negotiations.

(4) No across-the board increases 2.5 per cent. to be paid through the performance pay budget.

(5) Increase on daily rates.