PCS secures progress in Civil Service pay remit guidance

PCS has secured progress in the 2026/27 UK Civil Service pay remit guidance (devolved nation governments have separate remits) which contains measures aimed at improving pay for the lowest-paid civil servants and tackling long-standing issues around pay compression and grading differentials.

The guidance does not meet all of PCS's pay and bargaining objectives and we are clear that more is required.  However, it represents further progress secured through national talks. The union welcomes the continued focus on the lowest-paid grades and will continue campaigning for full pay restoration, greater job security, improved terms and conditions and a more coherent Civil Service pay system for our members.

The union has been engaged in national talks since securing concessions from the previous government following industrial action in 2023. Discussions continued under the Labour government, with PCS pressing for progress on pay, job security and more flexible ways of working for our members across the Civil Service and related bodies.
 
In the previous two pay rounds, PCS successfully argued that tackling low pay should be a priority. Over that period, cumulative inflation stood at 5.99%, while average cumulative pay increases achieved by employers reached 8.89%, rising to 9.59% for AA grades, 10.02% for AOs and 9.36% for EOs.
 

The newly published remit guidance builds on that progress and includes:

  • A headline pay remit of 3.5%, above the current inflation rate of 2.8% and among the highest headline awards across the public sector.
  • Additional funded flexibilities enabling departments to restore grading differentials of 5% between AA and AO grades and 5% between AO and EO grades, helping to tackle pay compression caused by increases in the National Living Wage.
  • Greater flexibility for departments to move to a common annual pay settlement date of 1 April, improving coherence across the Civil Service and increasing the overall value of this year's award.
  • New opportunities for career progression for AA staff to reach AO grades, potentially delivering further pay advancement.
  • A continued focus on the lowest-paid grades, with departments expected to outline how pay settlements will support EO staff alongside improvements for AA and AO grades.
  • A simplified business case process enabling departments to access additional flexibilities through discussions with recognised trade unions.

The PCS National Executive Committee will now consider the outcome of the talks and determine the next steps.

PCS general secretary Fran Heathcote said:

"This year's remit guidance falls short of what is required to address the real crisis in living standards faced by our members.  That said, it represents further progress in addressing low pay and restoring fairness across the Civil Service for our hard working, and dedicated members.

"We have secured important additional flexibilities to tackle pay compression, improve career progression and strengthen consistency across departments.  We are determined to ensure these improvements are translated into meaningful pay rises for members as quickly as possible.

"PCS will continue to press the government for further progress on pay restoration, job security and improved terms and conditions as part of its ongoing national bargaining agenda."

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