The big news this week in the world of British Politics has been over the 1% pay cap on public sector workers. If you’re wondering what the heck is a 1% pay cap, take a seat while this blog post gives you the lowdown…
What is the 1% pay cap on public sector workers?
The cap, first introduced by then Chancellor of the Exchequer, George Osborne, in 2013 replaced a two-year pay freeze as part of a wide-ranging austerity package introduced by the coalition government. What this means is many public sector workers since the introduction of the pay cap have not seen a rise in their wages as the cap permits a 1% per cent annual increase in public sector pay. However the wages of those in the private sector has increased ever so slightly in comparison. Take a look at the diagram below…
AVERAGE EARNINGS GROWTH:
So why all the fuss now?
In line with recent tragedies in Manchester, Westminster, London Bridge, Finsbury Park and the fire at Grenfell Tower, our emergency services have been praised by politicians and civilians alike. Everyday and especially in dire times, our public servants go above and beyond which is why many politicians have called for their hard efforts to be recognised by lifting the 1% pay cap to ensure all public servants receive a pay rise.
Senior MPs such as Foreign Secretary, Boris Johnson and Environment Secretary, Michael Gove are amongst many Conservative cabinet ministers and backbench MPs who are calling on Prime Minister Theresa May to consider lifting the 1% pay cap for public sector workers. Although Johnson and Gove did not out-rightly suggest the cap should be lifted for all 5.1m public sector workers, they have encouraged Theresa May to listen to an upcoming report by pay review bodies, which most likely will recommend the government lift the cap when it is published later this month. In the Conservative Party manifesto, they had committed to keeping the cap until 2020.
The Labour Party have also called for the cap to be lifted as they proposed an amendment to the Queen’s speech calling for an end to the pay cap, however it was rejected by 323 MPs in a vote in the House of Commons as the DUP voted in line with the Conservative Party as part of their informal coalition. In response to Labour’s defeated amendment, the leader of the Party, Jeremy Corbyn, commented:
“Tonight, the Conservatives had an opportunity to put their money where their mouth is, by ending cuts to our police and fire service and lifting the public sector pay cap.
“Although government ministers said they had learned the lessons of the general election and were listening to voters, it is clear that nothing has changed.
They had the perfect opportunity to walk the walk, but instead they marched through the lobby to show Tory austerity is business as usual.
While the money is there when the Conservatives need it to keep themselves in office, the rest of the country now face more devastating cuts to our emergency and other vital services.
The Conservatives clearly plan to keep working for a privileged few. Only Labour is ready to form a government that will work for the many.”
Despite pressures from the two major political parties, No. 10 Downing Street (where Prime Minister Theresa May resides) have confirmed there will be no changes to the pay cap. The Prime Minister’s spokesman has said they are “working through recommendations” from the public sector pay review bodies and would respond to those recommendations “in due course”.
The Institute for Fiscal Studies has estimated that increasing public sector pay in line with the private sector would cost an extra £6.3bn a year. Some might say if Theresa May can find an extra £1.5bn to keep her position as Prime Minister, she could surely offer the same courtesy and allow public sector workers to have some stability through their pay. But hey, it’s not like we don’t have nurses and teachers leaving the profession, seeking employment across the pond and risking the future of our younger generation…
In addition to the 1% annual rise, some NHS staff also get gradual increases in their pay as they progress in their roles.
The public sector employs millions of people both within central government and local government. This includes:
- NHS workers (domestic staff, porters, administrators, nurses, doctors etc)
- Teachers and those who work in education
- Law enforcement and security
- Social Services
- Armed Forces
- Fire Service
Shadow health secretary Jonathan Ashworth said the pay review bodies should consider a pay rise for public sector workers in line with the rise in average earnings across the economy.
Other things you may have missed…
Along with Brexit negotiations, the UK government has decided to pull out of the London Fisheries Convention which allows foreign countries to fish in British waters. The Convention was signed in 1964, before the UK joined the EU; withdrawal will take two years. Under the convention, vessels from France, Belgium, Germany, Ireland and the Netherlands are permitted to fish within six and 12 nautical miles off the UK coastline. British vessels will also lose the right to fish in the waters of other nations. Environment Secretary Michael Gove says the withdrawal will let the UK “take back control of our fishing policies”. But Greenpeace UK warned the move alone would not deliver a better future for the UK fishing industry. Looks like the UK really is ‘taking back control’…
On the subject of ‘taking back control’…
The government has reportedly dropped its ‘have cake and eat it‘ approach to Brexit, as ongoing negotiations have caused the Department for Exiting the EU (DexEU) to now accept that Britain must choose between privileged market access and political control in Brexit talks with the European Union. This change of thinking within the government represents a clear departure from the early negotiating position set out by the Prime Minister in her Lancaster House speech in January. May suggested that Britain would be able to negotiate a Brexit deal based on full access to the European single market without concessions over immigration and payments to the EU. Civil servants have reportedly since told government officials they face a choice between a deal based on preferential access to the single market but surrendering demands for independent immigration and leaving the ECJ, or a “taking back control” agreement cutting all ties with the EU but with a less favourable trade deal.
Pensions minister, Guy Opperman, has been criticised for his suggestion that millions of women under the age of 60 who face cuts to their state pension should take up apprenticeships in order to re-enter employment. His comments were made at a debate in Westminster Hall to discuss the changes to the law which will mean the state pension age will rise from 60 to 66 by 2020, delaying access to pensions for women born in the 1950s. SNP minister, Mhairi Black has campaigned frequently against the change in law and had told MPs if the Conservatives could find £1bn to strike a deal with the DUP, they could afford to give women the pensions they are due. Despite many ministers across the political parties arguing the changes are unfair, Mr Opperman says the government is committed to “life-long learning” and will make no concessions.
The German Green party, which had pushed for LGBT rights for decades, finally got their victory after the German parliament voted in favour of legalising same-sex marriage by 393 votes to 226 with four abstentions. As it was a free vote, lawmakers were permitted to vote according to their conscience rather than obeying party lines. The vote which permits LGBT people to marry and adopt was called by Chancellor Angela Merkel’s coalition allies the Social Democrats (SDP). However, Merkel voted against the move. Congrats Germany! 🇧🇪🌈
Who says this blog only comments on British Politics eh! 😉