Years of pay restrictions and predictions of an inflation increase could see the issue coming back towards the top of members’ priorities in 2017.

Analysis shows that civil servants’ pay has been hugely eroded by various government policies – more so than for other workers across the economy as a whole, and in the wider public sector.

The union’s national executive committee (NEC) has agreed to work on building momentum for a pay campaign that would include challenging the current 1% pay cap, both across the public sector and within the civil service and related employers.

The Treasury introduced a two-year public sector pay freeze in 2010, followed by a 1% cap on pay increases, which is expected to continue for the rest of this parliament.

Civil service pay increases have been further restricted by the removal of salary progression through grades, and take-home pay hit by increased pension scheme and National Insurance contributions.

Our data analysis makes the case that over the last decade, pay increases for civil and public servants have been lower than inflation (RPI), lower than average earnings for the economy as a whole, and lower than average earnings for the public sector.

Since 2007:
•    RPI has risen by 25.3%
•    Average earnings have risen by 17.8%
•    Public sector average earnings have gone up 19%
•    Median pay in the civil service has increased by just 13.7%.

Between 2016 and 2021:

Office for Budget Responsibility figures suggest that RPI will rise by 18%.
A workplace-led union campaign can strongly argue that civil servants deserve a pay rise above the 1% pay cap.

The NEC has agreed that in early 2017 PCS will work on making a submission to the Treasury and Cabinet Office which argues the 1% pay cap should be lifted. That would then be used as the basis for a national pay claim.

Members will be mobilised to help lobby and campaign on the submission during January, February and March. The Treasury Pay Remit – which drives civil service pay levels – is published shortly after the Budget, in April.

Meanwhile information will be gathered on pay settlement dates, other pay issues and departmental pay claims in each group, and each will be asked to consider options for a campaign within their bargaining areas.

PCS will also work with other unions to assess the prospects for building effective, coordinated action in order to break the public sector pay cap.