Blog: July 2017
Employers concerned that they will no longer be able to hire the skills and labour they need post-Brexit will have heaved a sigh of relief at today’s news that they will finally have a chance to have their say on future immigration policy. The Home Secretary announced the long-awaited consultation by the Migration Advisory Committee (MAC) and set out the Government’s priorities. Among much recent talk of cliff edges, it is not surprising to find that cliffs get a mention here too.
There has recently been scrutiny of public sector wage rises and the limits which have been placed on them since 2010. Most public sector workers have been subject to either a pay freeze or only a 1% pay rise per annum in the last 7 years. Allowing for inflation this has meant that variously they have seen their real wages fall on average by 12% over this time period. In this blog we explain what Public Sector Pay Review Bodies are and how their remit has been curtailed since 2010, what has actually happened to public and private sector pay over the last 13 years and why we should not just consider pay but also pensions and other parts of the remuneration package – or Total Reward.
Some have expressed disquiet over the long-term sustainability of the 1% cap on pay settlements first introduced in 2010 and due to continue until 2019/20. Independent experts who advise government on setting pay for the 2.5 million public servants covered by Pay Review Bodies (PRBs) have cited pay restraint as a reason for the difficulties recruiting and retaining high quality staff to deliver health services, education and other public services.