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Proceeding contribution from John McDonnell (Labour) in the House of Commons on Tuesday, 7 September 2010. It occurred during Debate on bill on Superannuation Bill.


Superannuation Bill

Yes, and that is why I have consistently put forward alternative economic policies and strategies. Let me press on, if I may. This is a serious debate, and I am trying to get across the feelings expressed to me through the PCS parliamentary group. As I say, I have met PCS members, I have attended meetings of the executive, I have been on picket lines, and I have been at various meetings around the country. There is anger about the proposals in the Bill—I shall come on to that—but also about the way in which the issue has been handled by Ministers. In interview after interview, and even in the Chamber today, Ministers and Government Members have focused, in their descriptions of the compensation scheme, on payments to the highest-paid civil servants; it has almost been a portrayal of ““Yes Minister””-type permanent secretaries, retiring to their Whitehall clubs on large-scale pay-offs. There are some individual examples of that, and they have been quoted today, but PCS is one of the leading unions that has pointed out that issues around high pay within the civil service have undermined the equitable distribution of rewards in the public sector. Time and again, including today, we have had repeated the example of some civil servants receiving up to six years' wages as a redundancy settlement. Let us get this point on the record as best we can: if I may refer Members to the Library note, of 500,000 civil servants, only 4,400 are in the senior civil service. The maximum compensation for most is capped at three years' pay under the compulsory scheme, and two years' pay under the flexible, voluntary scheme. For a small number of people who joined the service before 1987 with reserved rights regarding severance payments, payments are higher. Ministers were asked by the Public Accounts Committee and, I believe, in parliamentary questions on the Chamber Floor, for information on the number of individuals currently getting a package worth six years' salary. We were told that the information was unavailable because it could be provided only—there is a sense of irony here—at disproportionate cost. The six-year allegation is consistently used, even today. I would welcome some facts on how many people we are talking about and what the costs are.


Secondary information

Type
Proceeding contribution
Reference
515 c229-30 
Session
2010-12
Chamber / Committee
House of Commons chamber
Subjects
Compensation Civil servants Civil service Redundancy pay Redundancy Low pay Trade unions Public and Commercial Services Union Sunset clauses
Legislation
Superannuation Bill 2010-12
Link
View this Proceeding contribution on www.publications.parliament.uk