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Regional Pay

This has been an interesting and lively debate. My hon. Friend the Member for Cannock Chase (Mr Burley) rightly disavowed a race to the bottom and instead seeks a race to reality. On the other hand, the hon. Member for Dumfries and Galloway (Mr Brown) thinks private sector rebalancing is dreamland. My hon. Friend the Member for Hexham (Guy Opperman) made a thoughtful, and personal, contribution. My hon. Friend the Member for South West Norfolk (Elizabeth Truss) raised international examples in a very well-informed contribution. My hon. Friend the Member for St Austell and Newquay (Stephen Gilbert) talked of the need for an evidence-based approach and eschewed opportunistic and divisive debate, hints of which we have heard this afternoon.

We also heard from my hon. Friend the Member for Aberconwy (Guto Bebb), who referred to days that we shared on the Welfare Reform Bill and wondered why the Opposition did not support the idea of capping benefits. Perhaps they may tell us today why they favour regionalising benefits but not pay.

Let me talk about what this Government have done, as I wrap up this debate. As my right hon. Friend the Minister for the Cabinet Office and Paymaster General said, this Government greatly value the work and dedication of public sector staff. However, at a time when private

sector workers are living with falling wages and job uncertainty, and given the wider pressures we face on the public finances overall, there is a strong case for public sector pay bill restraint. This is why, at the autumn statement, we announced that public sector pay awards will average 1% for the two years following the end of the current public sector pay freeze.

It is also important to look at how public sector pay is set over the longer term. This is why, at the autumn statement, the Chancellor announced that there was a case for considering how local pay can better reflect private sector labour markets and invited the independent pay review bodies to consider the evidence. They will report back from July, and the Government will then consider their proposals. Nothing has yet been decided, and as my right hon. Friend the Minister for the Cabinet Office said, any proposals for each work force will need to be based on strong evidence.

However, it is clear that there is a case for looking at the issue. The pay review bodies have been asked to consider ways to recruit, retain and motivate suitably able and qualified staff across the UK.