Vox Pop: Should a pay freeze apply in sectors hit by staff shortages?

Monday, July 5, 2010

A two-year public sector pay freeze could undermine plans such as the pledge to recruit 4,200 additional health visitors.

NO - ED HOLMES, research fellow, economics unit, Policy Exchange

It is paramount that children's services are properly funded. This is vital for the protection of vulnerable children. The problem is not that pay is too low but that there are too few staff. The number of child protection referrals has ballooned without an increase in the number of social workers.

However, I don't believe that there should be a national pay freeze at all. It would be more equitable to freeze the paybill. Then we could reduce spending while reducing or increasing pay and staffing levels according to need, which would be more efficient.

NO - GAIL CARTMAIL, assistant general secretary for public services, Unite

The public sector pay freeze will do nothing to help recruit, and more importantly retain, key health professionals, such as health visitors and school nurses, of whom there are already severe national shortages.

Unite believes the two-year pay freeze is a blunt instrument and the consequences for working people are a pay cut in real terms coupled with the triple whammy of inflation, a hike in VAT and national insurance. Taking "demand" out of the economy could lead to a reported 1.3 million lost jobs in the next five years.

The emergency Budget was regressive, hitting women and the less well-off proportionately harder than the wealthy.

NO - NUSHRA MANSURI, joint manager in England, British Association of Social Workers

It feels as though all the work that has been under way for the past two years in terms of the social work taskforce has been undermined by a pay freeze when we are trying to build up the status of the profession.

It is about looking to the future. How do you encourage people to come into the social work profession? We are already lagging behind comparable professions in terms of salary and have been for a long time.

YES - EMMA WATKINS, head of public service policy, CBI

Applying the brakes to the public sector paybill is necessary to tackle the significant fiscal challenges facing Britain, and freezing the bill for two years will save £18bn.

However, it is important to protect the most vulnerable and those on the frontline, and ensure the public receives the services it needs. So, pay freezes need to be applied selectively and, where there are skill shortages, a freeze may not be practical.

The private sector uses a combination of measures to control labour costs while delivering quality services - the public sector needs to do the same.

NO - PATRICK NOLAN, chief economist, Reform
 
The key when dealing with staff shortages is for pay to be flexible. The most important thing is that people are paid according to the contribution they make or their productivity. This would mean that rather than pay freezes, flexible pay is the way to go.

However we do need to think about how we can lower the costs of public services and the cost of staff in public services.

This would require real reform of working conditions including things like pensions.

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