I appreciate the issues at stake when considering changes to the Civil Service Compensation Scheme (CSCS). Our civil servants fulfil essential roles in our country’s government, and we must ensure that we protect their interests while also serving the interests of the British people.
In the last 30 years, the CSCS has been reformed twice, first in 1987 and again in 2010. In the gap between those reforms, the scheme fell out of line with the best practice in the wider economy. The reforms of 2010 have been in place for more than five years, and has not provided adequate results. Looking at their effects, the Government believes that the scheme has not fully delivered on its goals, and is in need of reform.
Examining the cost of the CSCS makes government more cost-efficient and eases the burden on taxpayers. Considering national debt and our budget deficit, the Civil Service scheme, as it stands now, is too expensive. Reform of the scheme will decrease the current cost of exits. We will continue to work the staff and representatives to support employers while reshaping and restructuring the Civil Service, making our approach to exits more efficient and incentivising voluntary exits to ease the burden on staff. Nevertheless, when a reduction in staff numbers is necessary, the Government believes that an efficient CSCS is key. The current changes proposed to the CSCS represent the Government’s effort towards that end.