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Abstract

The development of more flexible payment systems in the public services has been a major objective of the British government since 1979 This increased flexibility has been observed to have three major elements: (1) a decline m the influence of national collective bargaining in pay determination; (2) a shift to pay systems which are more contingent on local circumstances, and, (3) the growth of more variability of compensation in the pay system, such as performance-related pay. The government's approach has been to encourage public sector pay practices to become more similar to those in the private sector. This article reviews the changes in pay determination methods in the British public services since 1979, and it assesses the degree to which public service pay practices are converging with the private sector It concludes that, despite evidence of significant changes, major constraints continue to inhibit the direct transfer of many private sector pay practices to the public services

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Pay Flexibilities in the United Kingdom's Public Services

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