Public sector pay strategy 2023 to 2024

Section 1: Strategic Aims Priorities and Partnership

Background

This 2023-24 Public Sector Pay Strategy sets out the framework for pay increases for staff pay remits, senior appointments ‑and all public appointments^[1] (Chairs and Members to Scottish Public Bodies). It applies to public bodies with settlement dates in the year between 1 April 2023 and 31 March 2024 (inclusive).

It applies to core Scottish Government (except senior civil ervants, for whom pay is a reserved matter) and 70 public bodies including non-departmental public bodies, public corporations and agencies (a total of around 52,000 staff). A full list of public bodies to which this strategy applies is available on the Scottish Government's Public Sector Pay webpages: www.gov.scot/publicsectorpay.

This Pay Strategy also acts as a reference point for all major public sector workforce groups across Scotland including NHS Scotland, firefighters and police officers, teachers, and further education workers. For local government employees, pay and other employment matters are delegated to local authorities.

Strategic Aims

The 2023-24 Public Sector Pay Strategy sets the framework to deliver fair, affordable pay awards and a sustainable workforce to enable the delivery of innovative and efficient public services. The Scottish Government's Public Sector Pay Strategy is based on the following principles:

• To invest in our public sector workforce which delivers top class, person-centred public services for all, supports employment and the economy, while providing for sustainable public finances.
• To provide progressive pay awards that are fair, affordable, deliver value for money and consider workforce and service reform.
• To protect those on lower incomes, continue the journey towards pay restoration for the lowest paid and recognise recruitment and retention concerns.

Key Pay Strategy Priorities Workforce, Public Service Reform and Wellbeing

This Government’s commitment to create a greener, fairer, and more resilient Scotland recognises the continuing contribution of public sector workers in Scotland. The 2023-24 Pay Strategy has been developed in the context of the cost of living crisis which has eroded spending power for people and governments and led to increased industrial relation tensions.

Scottish Ministers remain committed to delivering fair wage growth. However, we recognise the relative size of the public sector workforce in Scotland is higher than the rest of the UK and this creates a fiscal challenge as a large part of the Scottish Government’s funding is determined by spending elsewhere in the UK.

Those leading pay negotiations in the public sector need to balance pay awards with affordability including a financially sustainable workforce which ensures we have people with the right skills, in the right roles, delivering for the people of Scotland.

Reform of Scotland's public services is a priority. Pay and the public sector workforce are key levers to deliver a fair economic recovery with affordable, person-centred public services that support wellbeing and follow our Fair Work principles.

Our Strategic Partnership

Our strategic partners – Trade Unions and employers across the devolved public sector in Scotland – are central to the delivery of fair, affordable pay awards. Ministers expect pay negotiations to reflect:

• a focus on flexibility (supporting local issues);
• employee wellbeing (building resilience); and
• constructive dialogue between employers and Trade Unions that takes account of workforce and wider public service reform to ensure fiscal sustainability.

The work of our strategic partners and the underpinning pay negotiation mechanisms are complemented by a strategic, co-ordinated, and controlled approach to pay across government.

Affordability

The Pay Strategy sets the framework for public sector bodies to develop effective pay settlements that reward staff fairly and deliver sustainable services within constrained budgets.

Each public body covered by the Pay Strategy must ensure their pay proposals are affordable and sustainable within their financial settlement for 2023-24, drawing as appropriate on business efficiencies and workforce changes as part of ongoing public service reform.