Terms of reference announced for fair pay review in public sector


Terms of reference announced for fair pay review in public sector

The Prime Minister and the Chancellor announced in May 2010 that the leading economist and commentator Will Hutton is to conduct an Independent Review of Fair Pay in the Public Sector. The terms of reference have now been published.

This review will “investigate pay scales across the public sector, and make recommendations on how to ensure that no public sector manager can earn more than 20 times the lowest paid person in the organisation.” Hutton is expected to produce an interim report in autumn 2010, with a final report to the prime minister and the chancellor in March 2011.


A final word

“Ensuring fairness in public sector pay in current economic circumstances is a national priority, and I am delighted to be invited to lead this review. My approach will be to make recommendations rooted in tried and tested principles of fairness supported by as much evidence as can be gathered. There are multiple causes of growing pay disparity and the terms of reference permit the review fully to investigate them – and, of course, the consequences. Broader social norms have been changing over pay. One aim of this review apart from its recommendations on public sector pay, as the prime minister notes, will be to contribute to shaping those wider norms in future.” - Will Hutton, executive vice chair, The Work Foundation.

"Fairness should be at the heart of all public sector pay policy - there is no reason why public sector managers should routinely be paid more than 20 times the wage of the people working in their organisation. Will Hutton has a wealth of experience in this area and I am delighted he has agreed to lead this important review. His work will play a crucial role in delivering fairness in public sector pay." – George Osborne, Chancellor.

Want to know more?

For more details about the Hutton Review of fair pay in the public sector visit the HM Treasury web site at: www.hm-treasury.gov.uk/indreview_willhutton_fairpay.htm.

For the review’s terms of reference go to: www.hm-treasury.gov.uk/indreview_willhutton_fairpay_tor.htm.