Pay – an Update

Pay talks are proceeding on varying timescales, with some having already finished, while others are only just starting. Our negotiators are following guidance issued by the national executive committee (NEC) when it met to consider the civil service pay remit guidance for 2025/26, as well as progress in national talks with the government and the decisions made at annual delegate conference.

The remit guidance, issued by the government on 22 May, told departments and agencies that they can provide an overall pay increase of up to 3.25%, with another 0.5% to be used to address specific issues, such as low pay.

The NEC believes that these figures will not provide enough money to meet our demands, and our general secretary has written to the Cabinet Office to say this and to seek discussions. But negotiators are authorised to engage in talks with the aim of getting the best possible pay award for our members, and particularly to prioritise the lowest paid. In several areas where talks have already concluded, PCS has managed to secure above-inflation increases for members in the lowest grades.

The union is not balloting members on offers within the limits of the remit, as the NEC has already determined that offers at this level will not be sufficient to protect members’ living standards, provide restoration for the erosion of pay levels in recent years and address the structural problems associated with low pay.

Departments can seek permission to go beyond the figures in the pay remit by submitting a pay flexibility business case, where the proposed increase is linked to changes that they believe will deliver efficiencies. Our negotiators have been encouraged to explore this option with employers and this is happening in a couple of cases.

The main area so far where we have been unable to reach a satisfactory conclusion to pay talks – within the constraints of the remit – is the DWP. For the second year running, the department has chosen to make an offer that would provide a higher percentage increase to staff in higher grades than to those in the lower grades. PCS pushed for a fairer distribution of the pay pot, but this has been rejected by the employer and the union has therefore decided to take forward a dispute on this issue.

Pay and reward strategy

Alongside the talks with individual employers, PCS is in talks at national level, alongside our sister unions, on a long-term pay and reward strategy for the civil service and related areas. The government recognises that structural reform of pay arrangements is needed and is willing to engage with unions on our ideas for a fairer and more sustainable system.  A series of meetings has been scheduled over the coming months to explore these matters in detail.

Members’ meeting and find out more

Updates on the above will be given at members’ meetings that will take place in August and September, to consult you on the national campaign. You can ask for an update on the pay talks with your own employer by contacting your local branch reps. If you are unable to contact them, you can get in touch with your group officers. In both cases, their contact details are available by logging into PCS Digital.