Relative Earnings in the UK Public Sector: The Impact of Pay Reform on Pay Structure

What is it about?

The manner in which pay is determined has undergone fairly substantial changes in parts of the UK public sector in the last 15 years. The provision of some services has been subject to ‘market testing’ while other services are no longer provided by the public sector and have been contracted out. In still other areas of the public sector, most noticeably the civil service, decisions over pay have been decentralised and pay advances have been increasingly linked to individual performance. The thrust of reform has been to ensure that the same disciplines which influence pay in the private sector of the economy come to bear on pay in the public sector.

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