PCS rejects DWP pay offer

PCS proposed a business case to address low pay using the civil service pay remit’s flexibility, but it was dismissed by the employer.

PCS has rejected the DWP’s final pay offer for 2025–26. The offer not only falls short of our members’ expectations but also fails to make full use of the flexibility allowed under the civil service pay remit guidance to address low pay.

PCS has consistently opposed the 2025–26 civil service pay remit guidance, which caps average pay awards at 3.25% with an additional 0.5% flexibility to tackle low pay and workforce issues. Despite our national opposition, DWP had the opportunity to use this flexibility to support its lowest-paid staff - and chose not to.

Instead, the department prioritised structural pay issues at senior grades, leaving AA, AO, and EO staff, particularly those who opted out of the Employee Deal, once again facing the prospect of being uplifted to the National Living Wage (NLW) in April 2026.

Here’s what the offer includes for staff who accepted the Employee Deal: 

  • AA: 3.75% increase to £27,774
  • AO: 4.01% increase to £27,844
  • EO: 3.75% increase to £32,137

For those who opted out, the increases are even lower, with some EOs receiving just 3.25%.

PCS proposed a clear and viable business case to address low pay using the remit’s flexibility. DWP rejected it outright. Meanwhile, other departments are doing more:

  • Cabinet Office: AO & EO – 4.75%
  • DfE: AA – 6.4%, AO – up to 7.88%
  • MoJ: AA – 5.6%, AO – 5.7%

DWP’s refusal to act makes it an outlier in its treatment of the lowest paid.

The pay award is due to be backdated to 1 July and paid on 30 September. But PCS believes this offer is unacceptable. We’ve written to the permanent secretary demanding talks reopen to address low pay.

What’s next?
We’ll be holding meetings across DWP to hear your views and discuss our next steps. Non-members are welcome, but please encourage colleagues to join PCS. The more of us there are, the stronger our voice.

The group executive committee (GEC) has also agreed to move to a consultative ballot to test members’ readiness to take action. Members will be sent further updates soon.