Civil service compensation scheme - About the campaign
On 31 July 2009 the Cabinet Office first published former proposals for reform of the CSCS, the redundancy payment scheme for the civil service and many non-departmental public bodies and other public organisations.
After publishing their proposal in July 2009 the Cabinet Office consulted on them. 18,000 civil servants responded; the overwhelming majority of whom were opposed to the proposals.
For large numbers of the civil service the proposals worsened the redundancy terms to which they were entitled under what is a statutory scheme.
Since the consultation period in 2009, there were further negotiations under the previous government. While we were willing to continue negotiations, the previous government laid an amendment scheme to change the CSCS before Parliament on 5 February 2010.
These new arrangements, which were not agreed by us because the changes left many of our members considerably worse off, came into effect on 1 April 2010, but have now been largely quashed by the High Court.
The amendment scheme laid before Parliament which was subsequently quashed was laid under a procedure which did not allow for a vote by Parliament nor even a formal debate.
Recent High Court rulings on 10 May and 18 June following a judicial review taken by PCS found that the amendment scheme was unlawful as it imposed changes without agreement and would remove accrued rights based in the 1972 Superannuation Act and replace them with an inferior set of conditions.
In essence the unlawful and now quashed scheme laid before Parliament sought to:
- Impose a maximum cap of two years pay and/or £60,000 on any compensation package (however, for civil servants earning less than £20,000 there was to be a maximum cap of three years pay);
- The removal of access to pensions, unless it is paid for from the compensation cash sum;
- New rights for employers within the civil service related bodies to put together their own voluntary compensation scheme, subject to statutory minimum and maximum compensation caps being retained and
- Some limited protection for existing staff who leave as a result of compulsory redundancy.
The current situation and our concerns
Following PCS’s success in having the previous amendment scheme quashed talks on reform of the compensation scheme have recommenced with the approval of the Cabinet Office Minister the Rt Hon Francis Maude MP.
However the Minister has made clear that he sees the scheme quashed by the High Court as being over generous and the coalition government in its programme said it would recommit itself to reforming the CSCS in line with practice in the private sector whatever that may be.
Certainly what the government are seeking to do in this Bill is far more draconian than anything previously proposed. At a time when hundreds of civil servants across the country fear for their jobs, this Bill will slash their redundancy compensation, especially for older and longer serving staff.
The PCS position is quite clear that we are always prepared to negotiate to reach agreement, but any agreement should be fair to all parties, recognise the accrued statutory rights held by many civil service staff and be fair to new entrants to the civil service.
What is not acceptable to PCS and its members is for the government to attempt to use the Superannuation Bill as a blunt bargaining tool to influence the negotiating process nor is it acceptable as the government threatened to do, to introduce further legislation to change the 1972 Superannuation Act to remove the provisions which require agreement with the unions to detrimental changes.
What you should do now
- Email your MP and encourage them to oppose the Superannuation Bill
- Attend any union meetings that take place on the compensation scheme
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