Senior civil servants warned to expect pay freeze in 2010

Published on Tuesday 6 October 2009 00:28

THE highest earners in the public sector were last night given notice by Alistair Darling that they were in line for a salary freeze next year.

The Chancellor wrote to salary review bodies urging that there should be no pay rise for about 750,000 people including judges, senior NHS managers or GPs.

Senior civil servants are entering the final year of a three-year pay deal in 2010, but Mr Darling wants the agreement torn up given the state of the public finances. Three-year pay deals for non-senior civil servants will be respected, but those without agreements face rises in line with the private sector – ranging between 0 per cent and 1 per cent.

The armed forces will not be affected by the move, in acknowledgement of the unique circumstances currently facing the military.

The announcement is the first indication of how Labour intends to deal with public sector pay in the coming years.

Chief Secretary to the Treasury Liam Byrne said: "Britain's public services are invaluable, but if we are to halve the deficit over four years and protect frontline services, we have to make tough but realistic decisions on pay."

The announcement came as shadow chancellor George Osborne prepared for his keynote speech to the Conservative Party conference in Manchester today, when he will set out a case for an early rise in the retirement age to 66.

Of Mr Darling's intervention, Jonathan Baume, general secretary of the First Division Association, which represents senior civil servants and public sector managers, said: "For the government to turn around at this point and say that pay is frozen despite the previous commitments it has given is extremely disappointing indeed.

"We were not expecting 5 or 10 per cent increases but we did think that the modest increases that would have been due under the settlements already announced were ones that were well deserved."

He said the average senior civil servant or NHS manager was paid about 70-75,000 a year which was "quite a modest salary given the scale of the jobs that people are undertaking and the responsibilities.

"It's very tough in the public services," he added.

David Frost, director-general of the British Chambers of Commerce, welcomed the pay freeze, but said it was "long overdue".

Mr Frost pressed the government to go further, and announce a freeze on public sector recruitment. He agreed members of the armed forces should be a special case, given the sacrifices made in recent years.

The Tories questioned why the announcement had been made on the eve of Mr Osborne's main conference speech.

"Tonight's move by the government, if true, comprehensively shows that the Conservative Party is setting the terms of the political debate on the economy," a spokesman said.

"It is surprising that the Labour Chancellor chose to make this announcement – which affects hundreds of thousands of people – in the middle of a Conservative Party conference. People will question his motives."

A British Medical Association spokeswoman said: "This is very disappointing news. This is not the time to demoralise doctors.

"What we had asked in terms of a pay increase for all doctors was 2 per cent. A pay freeze won't help recruitment and retention.

"GPs are potentially being singled out. Given the responsibilities GPs have and the level of training needed, we don't feel that's the way to proceed."