WIREDGOV

Public sector pay must be affordable and sustainable, Finance Secretary John Swinney stressed today.

He was speaking as 'Public Sector Pay Policy 2010-11' was officially published.

The policy covers nine public bodies which are scheduled to submit pay remits during the 2010-11 pay round. The policy states that:

• The basic award for employees should not exceed one per cent
• Public bodies' overall pay bills should not increase by more than two per cent

It comes as the Scottish Government maintains its commitment to keeping a tight rein on public sector pay to ensure it remains affordable, sustainable and demonstrates value for money. And the Scottish Government will not commit to pay agreements that extend fully into the next spending review period.

Ministers are taking a pay freeze in 2009-10 and 2010-11 - an approach also extended to the highest paid people across the public sector who come under the Scottish Government's remit. Pay in the senior civil service will also be frozen in 2010-11.

Mr Swinney has also asked Chief Executives of public bodies to give up some or all of their bonus voluntarily. That request has already produced positive responses.

Mr Swinney said:

"In a challenging financial climate, when the Westminster government has cut next year's Scottish budget by over £500 million, it is vital that public sector pay awards are kept under tight control.

"Scottish Government Ministers are showing a lead in pay issues, having already taken a pay freeze for this year and next - something we have also extended to the highest paid people across the public sector whose pay arrangements come under our control.

"Pay in the senior civil service is also to be frozen in 2010-11, while I have had positive responses to my request that Chief Executives of public bodies give up some or all of their bonus voluntarily - something which is not happening elsewhere in the UK.

"Meanwhile, we are taking action to ensure greater efficiencies across the public sector in the interests of taxpayers. At 3.1 per cent, we exceeded our two per cent efficiency savings target for 2008-09.

"The policy published today, which covers public bodies due to submit staff pay remits in the 2010-11 pay round, is absolutely right for the times, in what are undoubtedly tough economic and financial circumstances. It ensures public bodies which are scheduled to submit pay awards in the coming year only set increases that are both affordable and sustainable. The Scottish public expect no less."

Nine public bodies are scheduled to submit pay awards during the 2010-11 pay round. Pay negotiations this year will affect around 6,000 staff, the majority of which are in NDPBs with a paybill of around £300 million.

They are: Highlands and Islands Airport Limited, NHS Scotland Senior Managers, Royal Botanic Garden Edinburgh, Scottish Arts Council, Scottish Screen Agency, Skills Development Scotland, sportscotland, VisitScotland, Water Industry Commissioner for Scotland.

The majority of public sector workers in Scotland are in other workforce pay groups outwith this policy. This includes around 70,000 covered by HM Treasury pay guidance and Local Government (including Fire Services), teachers, police, NHS Scotland, whose pay awards are determined by review bodies or national agreements.

Separately, the policy for NDPB Chief Executives and Chairs and Board Members of Scottish Public Bodies will be published shortly.

Related Links: Public Sector Pay Policy 2010-11