GOVERNMENT risks grinding to a halt as “chronic” pay issues mar Civil Service morale, MPs warned today.

The Public Accounts Committee said pay has been in long-term decline at almost all levels, coupled with disparities between government departments among staff at the same grade level, with low pay typically why recruitment campaigns fail.

The committee urged the Cabinet Office to set out plans to address declining real-terms pay and the variation between roles paid at the same grade, warning recruitment is also taking too long — an average of 99 days to hire new staff and an additional 171 days for candidates needing the highest level of security clearance.

Committee chair Dame Meg Hillier said: “For too long Whitehall has found itself in a losing recruitment battle with the private sector, without the right data, curiosity or willingness to act to tackle the problem.

“The challenges this country faces are immense — an ageing population, climate change and a more volatile and hostile world, to name a few.

“Whitehall needs to plan to ensure it has the right skills and rewards to deliver.

“It is welcome to see government pointing in an ambitious direction with a plan for a smaller, better-paid and more highly skilled Civil Service, but these outcomes will not materialise without more specific aims.”

Public and Commercial Services (PCS) members are currently voting again on whether to launch a fresh campaign of strike action amid long-running pay disputes with the government. 

General secretary Fran Heathcote said: “PCS welcomes the recommendations on pay within the report and would urge ministers to think seriously before publishing their pay remit guidance for 2024-25.

“As we ballot our members over pay, pensions and jobs, this report is further evidence of the need for decent pay for our members as well as a new approach to pay bargaining which puts an end to pay inequality for good.”

A spokesman for the High Pay Centre think tank said: “If Britain’s economy is to experience a revival and return to growth, it will require greater investment in the public servants who help to ensure the country functions — increasing civil servant pay is a key part of this.”

The Cabinet Office said: “It’s important that Civil Service pay awards are both fair and affordable for the taxpayer.”