By Claire West

The two-year pay freeze for public servants with a salary of more than £21,000 announced in June’s Emergency Budget will have detrimental effects on the sector, according to a survey that the Institute of Payroll Professionals (IPP) recently conducted amongst its members.

The research revealed that nearly two-thirds (64%) of members think the pay freeze will encourage workers to seek employment in the private sector and nearly half (46%) feel it will stall recruitment of vital posts in the public sector.

Other interesting findings showed that more than a third (38%) think it will impact the already agreed future pay rises (such as the year three pay deal for police officers) and more than a quarter (26%) feel it will deter those on lower pay grades from applying for a promotion.

Karen Thomson, Associate Director of Policy, Research, and Strategic Visibility at the IPP, said: “The IPP Policy & Research team has provided its research findings to the Chief Secretary to the Treasury, Rt Hon Danny Alexander MP, and has requested that our members’ views be considered in the review of the implementation of the public sector pay freeze later this year.

“The survey results highlight the negative impact that the pay freeze will have on the sector, especially in terms of employment engagement as well as attracting and retaining high quality employees.

“Further clarification on aspects of the legislation is also needed before the pay freeze is imposed from 2011—2012, such as the issue of whether part-time workers on a salary of less than £21,000 a year will also have their pay frozen if their equivalent full-time salary is more than the £21,000 limit.”