Public sector: Pay freeze will save 10,000 jobs, say SNP

Published on Wednesday 17 November 2010 19:30

PUBLIC sector workers are to have their pay frozen for a year in a move the SNP government claims will save 10,000 jobs.

Finance secretary John Swinney told MSPs that he planned to impose a pay freeze for public sector workers earning 21,000 a year or more, a move the government had widely trailed ahead of yesterday's draft budget announcement.

The policy will apply to Scottish Government staff, as well as those working in government agencies and non-departmental public bodies.

It also "sets a framework" for discussions on pay with NHS staff, teachers, police and fire-fighters.

Mr Swinney, speaking during his Budget speech at Holyrood, said: "By taking the difficult decision to limit pay awards in the public sector, we are using the savings to protect jobs.

"Our pay restraint policy will support thousands of jobs in local economies across Scotland."

Mr Swinney said his Budget set out to address "a financial challenge without precedent since devolution".

The finance secretary promised support for lower paid public sector employees and said that staff earning below 21,000 will receive a minimum increase of 250.

Mr Swinney also promised to tackle high pay in the public sector and said that the number of chief executives with access to bonuses will also be reduced, with an aim to suspend bonus payments for the year.

He said: "This government is now operating a presumption that where the chief executive of a non-departmental public body resigns or retires their replacement will start on a salary at least 10 per cent lower than the person they are replacing."

However, Lib Dem finance spokesman Jeremy Purvis said that "the detail in the Budget doesn't match the language in the minister's statement".

Mr Purvis said: "High pay is simply not being tackled. And under the SNP the highest paid staff in the NHS still keep 26 million of bonuses.

"The Budget is too hard on services because it's too short term."

Meanwhile, a trade union official criticised the finance secretary over the public sector pay freeze.

Unite T&G organiser Tommy Campbell said: "A pay freeze will cause hardship for many hard-working people who do jobs we all depend upon in our public services. "The Scottish Government should rethink this policy, which will harm people who are already struggling financially."