PCS rejects DWP pay offer

Despite the Treasury remit of 5% seeing a headline figure above inflation (currently at 2.2%) for the first time in decades, the DWP group executive was clear that the department’s priorities and implementation failed to meet our aspirations for members and disadvantaged the lowest paid in particular. PCS has therefore formally rejected the DWP's offer.

We will now urgently move to consult members via pay meetings which will be held in every office, both face-to-face and on-line. Please attend the meeting for their workplace and let us know what you think of the offer and ensure you have your say about next steps in our campaign for fair pay in the DWP.

The Department will impose their pay offer and plan to pay the new rates of pay and back pay in November’s pay.

While the final offer falls well short of what our members have every right to expect, the starting position of the department on day one of talks was even worse. The first proposal tabled by DWP during negotiations saw rises of 9.45% for SEO and Grade 7 staff on the national scale minima, while AA-EO grades would have received below 5% and all members on legacy contracts would have seen no consolidated pay rise at all.

In particular the DWP group executive committee opposes the offer for the over 20,000 members in the AA and AO grades whose pay will almost inevitably be caught up by the National Living Wage for the third consecutive year in April 2025.

This will mean that DWP will remain a minimum wage employer for the foreseeable future, paying the legal minimum rates of pay.

Hard-working members in the DWP deserve more than the employer is willing to pay from this year’s pay pot.

Download and read the full briefing.

2024/25 Pay Offer

The headline figures for consolidated pay rises are:

AA-HEO – Employee Deal Terms and Conditions

Grade            Uplift

AA                    4%*

AO                    5%

EO                     5%

HEO                   5%

AA-HEO – Legacy Terms and Conditions

Grade           Uplift

AA                   4%*

AO                  4.5%

EO                  Between 5.5% - 4.5% **

HEO                4.5%

*AA colleagues will receive an additional non-consolidated payment of 1%, to ensure that colleagues receive a 5% award overall – made up of consolidated salary increases and the additional non-consolidated payment.

**The exact percentage EO Legacy grades will receive will depend on how close they are to the pay band minimum. The additional uplift for those on the minimum compared to other Legacy colleagues is to ensure there is a difference between Legacy AA, AO and EO.

SEO-G6

Consolidated Uplift

Grade            Min           Max

SEO*                6%             4%

G7*                   6%            4%

G6                    4%             No increase**