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Media update 20 June 2013

FDA mentions

19 June

NAO Report highlights the need for action on pay

A National Audit Office (NAO) report Building capability in the Senior Civil Service to meet today's challenges revealed that senior civil servants had suffered: "A real terms pay cut of 17.4% between April 2009 and March 2013" and that changes to pensions and bonus payments means that the erosion in the value of the total pay package "will be even greater".

The report found a "widening pay gap between public and private sector pay [which] risks making it increasingly difficult for the SCS to recruit and retain the best people" and that the proportion of external recruits from the private sector has "decreased sharply since 2009-10".

Penman said:  "The Government needs to take action on pay and reward for senior civil servants or, as the NAO's report warns, 'risk an exodus of the most talented and marketable senior people' it most needs to deliver its programme of change. 

"It is becoming increasingly clear that lack of action to address the issue of pay and reward for senior civil servants could have serious consequences for delivering reform. We need to ensure that the Government has the capability that it needs to be able to successfully respond to the challenges that it will face in the coming years."

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