Public Sector Pay Differential

Recent governments, Tory and Labour, have used the true fact that the average salary in the public sector is higher than that in the private sector to justify the privatisation of public services. In November 2012 the Office of National Statistics produced a report and video politely debunking government claims that public sector staff are overpaid, providing statistical reasons for the overall higher average pay. We summarise the main points below:

a) Public sector jobs have a higher proportion of higher skill jobs. Just as in the private sector, higher skilled jobs attract higher pay.
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b) Public sector workers tend to be older. Just as in the private sector experienced staff tend to be paid more.

c) In both private and public sectors, those who work in larger organisations are paid considerably more (24.9% more) than those in smaller organisations. 94% of the public sector but only 49% of the private sector fall into the category of 'larger organisation'.

c) The group of people who are actually "overpaid" compared to the private sector are not the 'fat cats' but the poorest group. The lower paid groups are paid better in the Public Sector, while the higher paid groups are paid less.

The higher pay of the few is funded by the lower pay of the many:

Privatisation may mean costs are lower in the short term. However, in practical terms this means:

• Lower pay and services for the public who are employed and who are served. 
• Higher private sector profits, to fund pay and dividends for company executives and shareholders. 
• Lower taxes for those who pay tax. Rather than being taxed to maintain public sector services, they use the money they save to go private.

The greatest loss of all is the most powerful force protecting the interests of ordinary Britons: all those other ordinary Britons working in the public service watching the interests of us ordinary Britons. They may not be driven by heroism, but they are also not driven by profit.

That ONS video: