News

A set of principles which will dictate the future of public sector pay has been unveiled by the government.

The principles suggest pay and benefits packages be geared to improving services and driving productivity.

Priority is also given to promoting equal pay through audits, developing pensions to provide flexible retirement options, continuing national bargaining arrangements that also give local flexibility, and assessing whether pay incentives can be linked to service quality.

The principles are the results of discussion between the government, unions and local government employers through the Public Services Forum, and will be taken into account by employers' bodies during the next round of public sector pay negotiations.

• More information from www.cabinetoffice.gov.uk/opsr/news/2005/reward_principles.asp