Pay cap costs local economies £1.7 billion

26 Jan 2018

Local economies across the UK have been deprived of nearly £1.7 billion because of the civil service 1% pay cap and freeze, PCS has revealed ahead of payday protests across the UK on Wednesday (31 January).

Using our pay calculator and ONS data on the civil service and inputting the average civil service pay of £25,000, we calculated the average loss for each civil servant has been £4,400 which we multiplied by the total number of full-time equivalent civil service staff – 381,150.

With the greatest concentration of civil servants, London and the South has lost the most - £322,653,061 – followed by our North West region with £169,411,942 and Scotland with £141,625,408.

Other national and regional losses are:

  • Midlands - £114,279,176
  • Northern - £112,148,628
  • Wales - £106,379,145
  • Yorkshire and Humberside - £91,950,301
  • South West - £77,231,560
  • Eastern - £40,785,753
  • Northern Ireland - £13,340,800. 

PCS has called for urgent talks with the Cabinet Office over our 2018 pay claim which demands a fully-funded 5% pay rise, a Living Wage of £10 an hour, pay equality across the civil service and a common pay and grading structure.

Reps are planning to organise protests outside workplaces on Wednesday (31) to show why they desperately need the 1% pay cap to be lifted and for the government to deliver fully-funded, above inflation pay rises for all public sector workers. Members across the UK have been using the PCS pay calculator to work out how much they have lost because of 7 years of the freeze and subsequent cap. Workplace reps have then added all the individual results together for a combined workplace total.

Mark Serwotka, PCS General Secretary, said: “These figures are truly shocking. Civil servants have suffered years of pay freezes and caps. The figures show the true cost of austerity. This is money that should have been in members' purses and wallets. It would have helped the local and national economy as members would have spent this on goods and services. Our members would not be investing this in off-shore accounts.

“It’s time the chancellor got a grip on this situation. Our members can’t afford another year of this. He needs to act now.”


Big regional protests

PCS regional centres have organised big payday lunchtime protests in each PCS region in:


HMRC City Centre House where members have lost £7,037,600


Kentigern House where members have lost £3,520,000


Walker House where members have lost £1,308,993.60

London – Whitehall

Across central London civil service offices members have lost £125 million


ONS and UK Intellectual Property Office where members have lost £14 million


DVLA office where members have lost £12 million

St Austell

DWP office where members have lost £426,374


Members at HMRC George Stephenson House have lost £3,665,223.

Contact your regional centre for more details.

What you can do

#WeAllDeserveAPayRise #ScrapTheCapNow

Updated at 9.16am on 30 January 2018 to include Mark Serwotka's quote. 

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