Independent reviews
On 1 December 2010, the Fair Pay Review published its Interim Report. This Report comes at a time of great concern about fairness in the context of tough economic times. There has been intense debate about fair pay, and in particular about whether high earners deserve their rewards. This report:
The appropriate level for a maximum pay multiple (20 to 1 or otherwise) will depend upon how the multiple is designed. This Interim Report discusses a range of different design options, which will be developed further to produce detailed recommendations for the Fair Pay Review’s final report due early in 2011.
The Fair Pay Review Interim Report is available for download below in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.
Will Hutton said:
‘We live in a period of tough and profound choices. When the economy grew there were fewer concerns about fairness in general and fair pay in particular. Now the economy is under pressure, how fairly society distributes its benefits and burdens has suddenly become more pressing. The basic concept of tracking pay dispersion within boundaries is where concern with fair pay must lead. There is a strong case for organisations having to comply with, or explain why they do not comply with, a maximum pay multiple, such as 20:1, within a comprehensive fairness framework. This would reassure citizens that scare public funds intended for public benefit are not being squandered on excessive senior pay, help public bodies justify and explain current pay levels, and shape wider social norms about pay fairness, including in the private sector.’
On 19 July 2010 the Hutton Review of Fair Pay in the Public Sector issued a call for evidence, inviting views from all interested parties on issues around fairness in pay.
For all general enquiries about the Hutton Review of Fair Pay in the Public Sector please contact the Treasury Correspondence & Enquiries Unit:
