The government has commissioned economist Will Hutton to conduct an independent review of pay in the public sector.
The review will investigate pay scales across the public sector, and make recommendations on how to ensure no public sector manger can earn more than twenty times the lowest-paid employee in an organisation.
As he delivered today’s emergency budget, Chancellor George Osborne, said: “A further way we can ease the pressure on public services is to agree that we need to restrain public sector pay in these difficult times.
“Many millions of people in the private sector have in the last couple of years seen their pay frozen, their hours reduced, and their pension benefits restricted.”
The review will examine all aspects of the public sector pay package, including base pay, variable pay, bonus and other elements, to† the extent to which all can contribute to fairness across the pay range. It will also take into account any recommendations or findings from John Hutton’s review of public sector pensions.
The scope of the review is set to include staff covered by the Senior Salaries Review Body (senior civil servants, very senior managers in NHS commissioning bodies, senior military), senior staff in non-departmental public bodies, managers in local government and the NHS, regulators which receive public funding, and senior staff in further and higher education.
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