POA Circulars

168 | 10.12.2012

Local Market Facing Pay

In June 2012 the Executive promulgated POA Circular 60/2012, setting out the issues we had raised with the Prison Service Pay Review Body in respect of the Government’s announcement that they had to consider introducing local pay for prisons as part of the 2013/14 pay round.

The Executive stated that they believed our oral evidence was persuasive, but they did not know whether the PSPRB would support our view that local pay was not necessary.

On the 5th December 2012 the following written Ministerial statement was published.

The Parliamentary Under-Secretary of State for Justice (Jeremy Wright):

The Prison Service Pay Review Body (PSPRB) Report on Local Pay 2012 (Cm 8488) has been laid before Parliament today. The PSPRB makes recommendations on remuneration for Governing Governors and other operational managers, Prison Officers and unified support grades within its remit in the England and Wales Prison Service.

This report is in response to the Chancellor of the Exchequer’s request for the PSPRB to consider how to make pay more market-facing in local areas for staff within its remit group. Copies of the Report have been placed in the Vote Office, the Printed Paper Office and the Libraries of both Houses. I am grateful to the Chair and members of the PSPRB for their hard work in producing this report.

The PSPRB recommendation on local market-facing pay is as follows:

  • The reforms as set out in Fair and Sustainable should be implemented in full before consideration of any additional local pay flexibilities.

The Government has accepted the Review Body’s recommendation, which is consistent with Government proposals, that the new pay arrangements in Fair and Sustainable should be given time to “bed in” before consideration of any further local pay flexibilities.

The magnitude of this decision should not be underestimated in the current economical climate. The Executive would like to place on record its thanks to all the branches who provided evidence and information, which opposed local pay.

It is clear that the introduction of Fair and Sustainable was a major factor in staving off local pay. The NEC accept that the implementation of Fair and Sustainable at local level still causes concern, but these are local issues which need to be addressed by the registering of a local dispute.

The principles of Fair and Sustainable as agreed in the document issued in February 2012 must be adhered to. Members must not lose sight of the fact that Fair and Sustainable provided life time pay protection, a policy of no compulsory redundancies and has now played a key part in staving off local pay.

Please draw the contents of this circular to your members attention.


Yours sincerely



General Secretary