CSWF0002

Written evidence submitted by The Public and Commercial Services Union

1. The Public and Commercial Services Union represents almost 190,000 civil servants working across the UK. Our members work across all Government departments, NDPBs and arms lengths bodies. 

Pay

2. PCS is the largest union in the civil service, and we have long argued for a return to national collective bargaining. There are currently over 200 separate bargaining units in the civil service which has resulted in a system riddled with discrimination, inequity and unfairness – people doing broadly the same job at broadly the same grade in wildly different rates of pay depending on which department they work in.  This situation is already causing operational problems in respect of staff turnover from department to department

3. Currently there is no serious mechanism for negotiating pay between the civil service and its trade unions. Each year, the Cabinet Office publishes a remit guidance document that is mandatory for departments to follow at delegated level. It claims that the document is a cost control mechanism and that departments, at delegated level, are free to collectively bargain pay arrangements with their trade unions

4. PCS believe that this system is significantly flawed. The proposals set out in the pay remit guidance mean that there is no latitude for a collective bargaining process to take place at delegated level which in general, and practical terms means that the headline figure, which is decided at the centre, is simply imposed across-the-board.

5. PCS believes that the government must take steps to eradicate the current system which, in its current form, only promotes discriminatory practices and vast pay inequality across the civil service. The restoration of national bargaining would enable development of the framework for the civil service establishing the rate for the job at the relevant grade.

6. A return to national bargaining would also remove the necessity of having hundreds of pay negotiations every year and replace it with one central negotiation, making the whole process more efficient and cost-effective

7. The issue of low pay must be urgently addressed.  Pay rises consistently below inflation due to pay restraint policies have left civil servants facing in work poverty.  Government departments must annually uprate the wages of the lowest paid in the two, and in looming cases three, most junior grades due to rises in the minimum wage.  This leaves staff in the most junior grades having different levels of responsibility but being paid the same low wage.  An urgent pay hike in these grades is required.

8. Pay in the civil service should not be considered a burden.  It is, in fact, and economic benefit to the nation.  The government takes an immediate claw back in tax and national insurance; civil servants spend their wages in the economy.  This creates jobs, growth and further tax take.  It pays for itself in the longer term.

Jobs

9. During the Conservative Party Conference, the Chancellor of The Exchequer, Jeremy Hunt, gave a speech to the conference referencing the civil service. In it, he promised that he would return civil service headcount to pre-Brexit numbers.

10. We met with the Cabinet Office on 5 October 2023 to discuss the matter. The Cabinet Office confirmed that:

> Civil Service staffing numbers would be reduced from its baseline in September               2023 to its previous baseline in either March 2019 or December 2019

> the reductions will take place in the period between 1 April 2025 to 1 April               2030

11. No rationale was forthcoming to justify the proposed cuts. As we have previously experienced with Chancellors from both Labour and the Conservatives, the proposal is likely to be driven by political positioning to feed the narrative that the social problems faced by the UK are because of an over inflated state. We were clear with the Cabinet Office that we were opposed to such an approach.

12. The Cabinet Office stated that UK Civil Service staffing as of March 19 was 391,000 full-time equivalent (FTE); the staffing figure in June 23 was 457,000 (FTE). In the event that the proposal ever sees the light of day, that will mean the loss of 66,000 (FTE) jobs.

13. The Cabinet Office were clear that the September 2023 baseline figure will be a cap. As an illustration, they said that the planned increase in Prison Officers number would have to be compensated by cuts elsewhere to remain within the cap. They conceded that they would therefore need to be a central mechanism to ensure that numbers remained within the cap. It was clear from the discussion that Cabinet Office officials had not been consulted on the announcement and that there was no plan in place for the delivery of what is being proposed. They agreed to regular engagement with us to discuss any plans that may evolve.

14. The government announcement on the issue states that departments must submit long-term productivity plans that modernise the Civil Service and reduce the size of the state – delivering high-quality public services at a lower cost. We pointed out to the Cabinet Office that they had agreed to talks on job security as part of the concessions made regarding our national campaign.

15. We said that this announcement, coupled with developments on artificial intelligence, left us with serious concerns as to the future make-up of the Civil Service. We said that it was important to understand the implications of artificial intelligence for the future world of work. Rather than employer is using it as a blunt cost-cutting measure that would generate a dystopian future, we said that workers should enjoy a dividend in the form of improved pay and a shorter working week and increased leisure time.

16. We said that there was a need for proper consultation with the unions on the use of artificial intelligence in the context of the talks due to take place on job security.

17. Rather than governments consistently making arbitrary cuts leading to crisis management, a hardheaded, evidence-based assessment is needed on resources, including consideration of the role civil servants can play in stimulating economic growth.  A collectively bargained national framework could provide a focus on delivery, job security and economic benefit. 

DWP staffing crisis

18. PCS delivered a damning dossier to the DWP in December detailing the impact of the ongoing staffing crisis on staff morale.

19. The dossier contains over 50 testimonials, based on over 250 individual responses and the responses were startling. Staff are often ill through stress, mainly attributed to understaffing, failures of recruitment and retention, poor conditions and low pay. Hard-working staff despair at the quality of service being delivered to the most vulnerable in society. Over 20,000 of those staff are now paid below the National Living Wage and will need to receive a pay rise in April to bring them up to that level.

20. Below are some remarks from the dossier -

• “I have been a civil servant for 46 years and have never seen morale as low. Offices are functioning on good will and colleagues literally have no more to give.”
• “We recently received a visit from a DWP regional director. Our staff shortages were covered up by drafting additional people from other Jobcentres just for this day.”
• “Our teams are badly understaffed. The absolute bare minimum is getting done and vulnerable customers are falling through the gaps.”

21. Based on current figures, PCS estimates that the DWP need an additional 30,000 staff. Their current recruitment aspirations are not being met. The department are aiming to hire 5000 staff per quarter however the most recent DWP staffing figure available is 86,866 at the end of September. Since April DWP 4,400 staff have joined DWP and 3,513 have left.  Attrition is approximately 10% with new staff joining. The DWP aspiration to increase its size to deliver the extra work and deal with backlogs is failing.

Return to offices – 60% proposals

22. In late 2023 the Cabinet Office announced a drive to encourage increased attendance at civil service offices suggesting workers attend an office 60% of the time.

23. During the Covid-19 pandemic our members adjusted their working arrangements at short notice and continued to provide vital services despite facing significant challenges. Since then, many departments have adopted and supported an element of hybrid working, with cabinet office support.

24. This recent announcement has therefore come as a shock to our members and is a slap in the face for thousands of dedicated civil servants who continued to provide outstanding service whilst working in a more hybrid environment.

25. PCS surveyed its members affected by this announcement in December 2023. Over 16,000 responses were received, and the results were concerning-

• 38.64% said the move to 60% attendance at offices would make them consider leaving the civil service; a further 28.55% were unsure.
• 59.78% of respondents said it would place them under more stress and less able to look after those they care for; a further 15.78% were unsure.
• 40.16% said they felt that being forced to attend the office more frequently would disadvantage them because of their sex, disability or age; a further 13.51% were unsure.
• 100% said that they would face increased weekly travel costs as follows: £0-25 (51.41%); £25-50 (25.92%); £50-£75 (11.23%); £75-£100 (4.76%); over £100 (6.68%)
• 100% said they would lose valuable time travelling to work unnecessarily due to the following daily commute: 5 - 30 minutes (26.28%); 30 – 60 minutes (39.62%); 60 to 90 minutes (21.34%); 90 to 120 minutes (7.43%); more than 120 minutes (5.33%) 
• 36.27% said that the move would create problems with desk space.
• 83.16% said hybrid working had made them more productive.
• 71.98% said they would support a nationally agreed hybrid working policy.

26. The results show the huge impact this proposal will have on staff morale. These decisions will affect many of our members who are already struggling financially due to the ongoing cost of living crisis and endemic low pay across the service.

27. This decision will also significantly impact recruitment in the sector as hybrid working is an attractive prospect for many and reflects a modern working environment.

Conclusion

PCS members remain unconvinced by the aims of the current administration. This can be evidenced in the overwhelming support for our yearlong national dispute which saw over 120,000 PCS members taking targeted strike action across several Government departments in a dispute over pay, conditions and pensions. These are issues which remain unresolved for many of our members, including those employed at the Pensions Regulator who are currently on strike due to the employer's refusal to pay the remit guidance of 4.5-5%.

PCS believes that a modern civil service must first treat its employees with respect, encouraging fair pay, pensions and job security. Over the past 14 years we have seen the erosion of these basic rights and the future of the service hangs in the balance due to the ongoing mistreatment of our members and the inability of civil service leadership to work collaboratively with its workers representatives.

To deliver the best services for the public we need a resourced civil service with a return to national bargaining to promote equality. Development and opportunities must not be reserved for the select few, instead promotion of opportunities for the diverse workforce will only help strengthen the service and encourage retention in key areas.

We also need to respond to the evolving world of work following two years of a pandemic. Our members responded immediately, adapting in order to support service users and Government in the delivery of key services. We therefore believe that discussions with unions must continue before the forced implementation of a 60% return to offices across the sector. Our members have proven that standards remain high even when working remotely. This supports staff with caring responsibilities, those with disabilities and many who can no longer afford to travel to the office.

PCS welcomes the chance to provide written and oral evidence to the committee and can assist in your ongoing inquiries.

January 2024