Ryan FowlerNew data from the Institute for Government’s Whitehall Monitor highlights a continuing decline in morale among UK civil servants, with dissatisfaction over pay and benefits driving concerns. Despite marginal pay increases in 2023, civil servants have seen real-terms wage cuts over the past decade, leading to recruitment and retention challenges.
After years of improving engagement scores, which reflect motivation and attachment to the organisation, morale has dipped significantly since 2021. The latest figures show that engagement scores fell across all departments in 2022, with the Cabinet Office recording a stark 9 percentage point decline. The Department for Education (DfE) saw the sharpest drop in satisfaction with how change is managed, decreasing by 15 percentage points, likely driven by leadership instability, including six different secretaries of state in 2022.
Dissatisfaction with pay is at the heart of the issue. The proportion of civil servants satisfied with their pay and benefits fell to 29% in 2022, down 9 percentage points from 2021. While a one-off £1,500 payment and a headline pay rise of 4.5% for non-senior staff helped avert further strikes in June 2023, real-terms pay remains significantly below 2010 levels. Senior civil servants, in particular, have faced real-terms pay cuts of over 25%.
Uncompetitive pay compared to the private sector and even other public sector roles has made it harder for departments to attract and retain talent. A 2023 survey found that over half of civil servants intending to leave their roles cited pay as the primary reason. This issue is especially acute in senior roles, where comparisons with equivalent positions in organisations like the Bank of England and the Financial Conduct Authority highlight significant disparities.
Commenting on the findings, the report notes that low pay is contributing to “grade inflation,” where departments promote civil servants earlier to retain them by offering higher salaries. This trend has made the civil service increasingly top-heavy, with the proportion of junior staff (AO/AAs) declining by 45% since 2010, while the number of mid- to senior-level staff has doubled. Despite these shifts, overall pay has not kept pace, with the government saving less than expected due to the resulting changes in grade composition.
While pay dissatisfaction is a key driver of staff departures, the report notes that morale is also influenced by workload, leadership, and organisational culture. Satisfaction with these factors correlates more strongly with engagement levels than pay alone.
Without further action to address pay disparities and improve working conditions, the civil service risks losing valuable talent at both junior and senior levels, further undermining its ability to function effectively. The report suggests that aligning civil service pay more closely with the private sector could mitigate morale and retention issues without significantly increasing the overall pay bill.
