A proposal to cap senior public sector salaries at no more than 20 times the wage of their lowest paid employee has been rejected by a national review.
The Review of Fair Pay in the Public Sector, led by Work Foundation chief executive Will Hutton, said the idea would affect as few as 70 senior managers.
Instead, he recommended that organisations delivering public services should track, publish and explain the gap between the salaries of senior managers and lower paid staff.
The report also warned against using the Prime Minister’s £142,500 salary as a benchmark for the remuneration of senior public servants, whose pay it said should “reflect their due desert and be proportional to the weight of their roles and their performance”.
Instead, it called for managers to have a portion of their pay withheld, and either topped up or docked depending on their performance.
Mr Hutton said: “It is essential that senior public servants are adequately rewarded for their contributions…But public trust in public services can only be maintained if senior public servants’ pay is fair and seen to be fair.”
Responding, Chancellor George Osborne said: “We will give careful consideration to his recommendations and respond in detail in due course.”
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