Government pay dispute resolved

5:22pm Tuesday 2nd December 2008

A long running pay dispute between the Government and civil servants, which threatened to spark a winter of discontent, has been resolved.

The Public and Commercial Services union said there had been a breakthrough in the row following weeks of intensive talks.

Money from efficiency savings will now be released for pay bargaining in individual departments and related public bodies, said the union.

Officials added the government had also pledged there was no 2% cap on pay increases.

Mark Serwotka, the union's general secretary, said: "This agreement is an important breakthrough and forms a positive basis on which we can take the union's pay campaign forward.

"Over the coming weeks and months we will be ensuring that this agreement produces better pay for the low paid civil and public servants who deliver the everyday things we take for granted. We will also be seeking to address our remaining concerns over pay though further talks."

Civil servants ranging from jobcentre and benefits staff to coastguard workers, have taken industrial action in recent months and were threatening a national walkout.