“Our members want to work. They are proud of the job they do in DWP because they know it’s of great value to society. But this level of poverty pay is not sustainable.”
From the Public and Commercial Services Union (PCS)
Members of the Public and Commercial Services Union (PCS) at the Department for Work and Pensions (DWP) are angry about chronic low pay and wage compression.
Nearly 50,000 members (who work in jobcentres, Universal Credit service centres, Personal Independence Payment centres, pension centres and child maintenance offices) begin a statutory ballot for strike action on Monday 19 January, which will run until 23 February.
There are 25,000 workers in the lowest three pay grades whose wages will all be at the National Living Wage as of 1 April 2026. DWP’s 2025/26 pay offer did not address this and was rejected by PCS. The readiness of members to strike was tested in a consultative ballot in October.
There is a recruitment and retention crisis in DWP. This, along with the significant transformation being proposed in DWP [see notes], qualifies the department to request an increase in spending on pay from the Treasury. Unlike other departments, DWP did not make a business case to the Treasury, despite recognising that they could have access to at least £6.6m to increase spending on consolidated pay.
Members demand that the department reopen 2025/26 pay talks, submit a business case to the Treasury for increased spending on pay, and work with PCS to focus on the department’s lowest-paid staff.
PCS general secretary Fran Heathcote says:
“Strike action is always the last resort. Our members want to work. They are proud of the job they do in DWP because they know it’s of great value to society. But this level of poverty pay is not sustainable.
“Members across the department have told us that they are struggling financially as debt spirals. And as workplace stress increases, people’s mental health further deteriorates.
“The functioning of the welfare state depends on our members’ hard work and good will. But DWP has some of the lowest-paid members in the civil service, paid well below the market value for their skilled work.”
Notes
‘Transformation’ refers to government proposals from recent white and Green papers e.g. creation of the Jobs and Careers Service, Health Transformation (changes to PIP)… all of which DWP staff will have to deliver.
Wellbeing: A recent survey of PCS members in the DWP revealed that many members are unable to pay household bills and are struggling with debt. Up to 20% of respondents claim in-work benefits, and almost 14% of respondents reported using food banks for extra support.
Pay offer: DWP’s overall offer (in line with the Treasury pay remit guidance of 3.25% plus an additional 0.5%) failed to prioritise the issues of chronic low pay and wage compression. Instead of addressing this, DWP used the additional 0.5% address anomalies in higher grades. Offers elsewhere in the civil service show how far behind DWP is: Department for Education (up to 7.88% for AOs), Ministry of Justice (5.6% for AAs, 5.7% for AOs), and HMRC (4% for AOs and EOs).
Pay grade compression: PCS rejected the DWP final pay offer for 2025/26 because it fails to address the serious issue of chronic low pay. Administrative assistants, administrative officers and some executive officers face the prospect of being on the National Living Wage (NLW) from April 2026.
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- This was originally published on the PCS website on 16 January 2026.
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