The Public and Commercial Services (PCS) Union has called on the Department for Work and Pensions (DWP) to reopen negotiations regarding the 2025–26 pay settlement, strongly criticizing the current agreement as “unacceptable.”
The union has announced plans to hold a consultative ballot to assess whether its members are prepared to take industrial action.
PCS Demands Fairer Pay Discussions
PCS confirmed that it had sent an official letter to Peter Schofield, the DWP’s permanent secretary, requesting that discussions around pay be resumed immediately. The union emphasized the urgent need to address low pay, especially among junior staff levels.
According to PCS, it had submitted a “clear and viable” business case that proposed better use of the civil service pay remit’s flexibility to improve wages for lower-paid workers. However, the DWP rejected this proposal outright, choosing instead to focus on pay restructuring for higher-level roles.
Concerns Over Low Pay for Frontline Staff
PCS expressed concern that employees at the Administrative Assistant (AA), Administrative Officer (AO), and Executive Officer (EO) levels—especially those who had opted out of the Employee Deal—were again at risk of receiving only the National Living Wage by April 2026.
The union argues that this continued neglect highlights the department’s disregard for its lowest-paid employees.
Pay Offer Breakdown
The current DWP offer includes:
| Grade | Pay Increase | New Salary |
|---|---|---|
| AA | 3.75% | £27,774 |
| AO | 4.01% | £27,844 |
| EO | 3.75% | £32,137 |
PCS described these adjustments as insufficient, stating the DWP is now an “outlier” in its approach to compensating staff in lower pay bands, especially when compared to other government departments that are reportedly doing more.
Union Meetings and Ballot Plans Underway
PCS has committed to organizing informational meetings across DWP locations to gather feedback from staff and determine the next steps. These meetings are open to both members and non-members, with the union encouraging wider participation to strengthen collective bargaining power.
In addition, the Group Executive Committee (GEC) has agreed to proceed with a consultative ballot, aimed at measuring members’ willingness to strike or take alternative actions. More updates will be shared directly with PCS members.
Backdated Pay and Payment Timeline
The pay increases, although contested, are scheduled to be backdated to 1 July and will be paid on 30 September. Despite this timeline, PCS has reiterated its disapproval and confirmed it will continue pushing for renewed negotiations.
The PCS union’s rejection of the DWP’s 2025–26 pay deal has escalated tensions between civil service workers and the department.
The union’s firm stance underlines the widespread frustration over low pay, especially for frontline workers who are vital to public services.
With a consultative ballot imminent, the pressure is mounting on the DWP to revisit its pay strategy or face potential disruption in the months ahead.
FAQs
Why is the PCS union opposing the DWP’s 2025–26 pay offer?
The PCS believes the offer does not adequately address low pay, particularly for AA, AO, and EO staff, and fails to use the civil service pay remit’s flexibility effectively.
What are the proposed salary increases under the current DWP offer?
The DWP has proposed a 3.75% increase for AAs (£27,774), a 4.01% increase for AOs (£27,844), and a 3.75% increase for EOs (£32,137).
What steps is PCS taking in response to the rejected pay deal?
PCS is organizing internal meetings and launching a consultative ballot to assess members’ readiness for industrial action and is continuing to press for renewed pay talks.