Pay inequality in the DWP

Pay inequality remains one of the most pressing issues facing DWP staff, particularly those in the junior grades. PCS has consistently highlighted how years of belowinflation pay awards and structural imbalances have widened disparities across grades and undermined the financial security of frontline workers.

For 2025–26, the government’s civil service pay remit allows an average uplift of just 3.25%, with an optional additional 0.5% to address workforce issues. The DWP group executive committee, led by group president Angela Grant, argues that DWP leadership has failed to use these flexibilities to support AAs, AOs, and EOs—this will see thousands falling below the National Living Wage this year. These staff deliver the department’s frontline services, yet structural adjustments have again favoured highergrades and specialist posts.

This imbalance reflects deeper structural inequality. Other departments have offered significantly better uplifts—for example, 4.75% for AOs and EOs in the Cabinet Office and up to 7.88% for AOs in the Department for Education. Such comparisons highlight inconsistent treatment across government and DWP’s low regard for its lowestpaid staff.

Gender Pay Gap Implications

The DWP’s 2023 gender pay gap report shows a mean gap of 5.5% and a median gap of 0%, indicating improvement but still demonstrating unequal earnings. Women make up 64% of the workforce and are heavily concentrated in AA, AO, and EO roles—the same grades receiving the weakest pay uplifts. PCS argues that low pay therefore disproportionately impacts women, limiting the practical effect of the department’s equality commitments.

Ethnicity and Disability Pay Gaps

Although the DWP does not yet publish its own ethnicity and disability pay gaps, national data reveals clear disparities. The government is consulting on mandatory reporting in these areas, acknowledging ongoing inequities affecting Black, Asian and minority ethnic staff and disabled workers. Nationally, disabled employees face a 12.7% pay gap, with even larger gaps for some impairment groups, such as autism at 27.9%. These patterns are highly relevant in the DWP, which employs large numbers of disabled and ethnically diverse staff, many clustered in lowerpaid grades.

PCS Position and the Need for Structural Reform

PCS argues that without fair pay, DWP equality commitments have limited realworld impact. Pay inequality, compounded across gender, ethnicity, and disability, weakens morale and contradicts the department’s stated aims on inclusion. Pay stagnation also sits within a wider context of longterm erosion, with civil service pay falling over 20% in real terms since 2020.

PCS believes meaningful change requires fully funded pay rises, protection for the lowestpaid, restored pay progression, and a strong business case to the Treasury for additional flexibility. Without structural reform, DWP risks growing recruitment and retention challenges that will harm both staff and the public.

PCS is demanding that DWP addresses the chronic low pay in this department,52.3% of you have said you are ready to take action on pay to support that demand.  If you have not yet voted in the statutory ballot, please check your post for your ballot paper – the envelope is clearly marked PCS – and return your ballot as soon as you can.

Together we can make a difference.