Box C: Are the Pay Review Bodies fit for purpose in 2023? By Peter Dolton

Summary

What are the arguments in this debate? Why is the Government trying to limit these pay rises? What is the role of the Pay Review Bodies (PRB) in this process and how might they be appraised? In the light of the CoL crisis, is there a case for reviewing what the PRBs do and how the government uses them? This box reviews brief answers to these questions. [...] Most of the PRBs are required in their remit to make recommendations on pay giving consideration to relative pay comparisons, cost of living changes, the relative position of recruitment into and retention within the occupation and finally the fiscal affordability position of the government. [...] The reality is, though, that by the time these recommendations were being accepted by the relevant government departments the rise in the CoL had shot up to around 10 per cent. [...] Should the PRBs’ remit be changed in be light of the Cost-of-Living crisis? Since they were set up the PRBs have only ever had the remit of making recommendations about pay and working conditions and affordability in the different occupations. [...] The present situation is a very abnormal one due to the timing of the huge hike in the CoL coming just after the PRBs had reported in 2021/22.