By David Williams
13 May 2010
Ministers have agreed to lead the public sector into its coming period of austerity by taking a 5% cut in salary, followed by a pay freeze for the rest of the parliamentary term.
The move was announced today as the first major decision to be taken by the Conservative–Liberal Democrat coalition cabinet.
Prime Minister David Cameron’s salary will be reduced from £150,000 a year to £142,500. His Cabinet colleagues have agreed to reduce their salaries by £7,082 to £134,565, while ministers of state will now be paid £98,740 a year – down from £103,937.
There will be similar reductions for parliamentary under secretaries of state and ministers in the Lords.
Downing Street calculates that the reductions will save £300,000 this year – with cuts to Cabinet salaries alone contributing £50,000. Total savings over the Parliament will be around £3m.
The first spending decision of the new government was taken by Education Secretary Michael Gove.
His decision to rebrand the former Department for Children, Schools and Families as the Department for Education could cost tens of thousands of pounds. Public Finance understands that the change reflects a shift in priority and emphasis under the new government, which will focus on teaching and learning.
Whitehall expert Colin Talbot estimates that it costs £80,000-£100,000 to re-name a department.
However further costs will have been avoided as no restructuring is taking place. The department will retain responsibility for children’s services such as Sure Start, while universities will remain in the Department for Business, Innovation and Skills under new minister David Willetts.
13 May 2010
Ministers have agreed to lead the public sector into its coming period of austerity by taking a 5% cut in salary, followed by a pay freeze for the rest of the parliamentary term.
The move was announced today as the first major decision to be taken by the Conservative–Liberal Democrat coalition cabinet.
Prime Minister David Cameron’s salary will be reduced from £150,000 a year to £142,500. His Cabinet colleagues have agreed to reduce their salaries by £7,082 to £134,565, while ministers of state will now be paid £98,740 a year – down from £103,937.
There will be similar reductions for parliamentary under secretaries of state and ministers in the Lords.
Downing Street calculates that the reductions will save £300,000 this year – with cuts to Cabinet salaries alone contributing £50,000. Total savings over the Parliament will be around £3m.
The first spending decision of the new government was taken by Education Secretary Michael Gove.
His decision to rebrand the former Department for Children, Schools and Families as the Department for Education could cost tens of thousands of pounds. Public Finance understands that the change reflects a shift in priority and emphasis under the new government, which will focus on teaching and learning.
Whitehall expert Colin Talbot estimates that it costs £80,000-£100,000 to re-name a department.
However further costs will have been avoided as no restructuring is taking place. The department will retain responsibility for children’s services such as Sure Start, while universities will remain in the Department for Business, Innovation and Skills under new minister David Willetts.
