The Public & Commercial Services Union (PCS) has rejected the offer as they said it ‘falls significantly below our national demands of a 10% increase to address the current cost of living crisis as well as being below the current rate of inflation’.

The offer ranges from 4.26% to 6.27% depending on grade and point on pay range. However, the proposal does not to secure consolidated and pensionable rises of a minimum of 4.5% for all staff, which the PCS was seeking.

The PCS criticised as ‘not acceptable’ HMRC’s decision not to increase the maximums of the pay ranges so that staff who are on or near the maximum of their pay range will not receive a fully consolidated and pensionable increase in salary.

In April 2023 over 19,000 HMRC staff were given an increase in salary to meet the requirements of the legal minimum wage. This resulted in AA and AO grades being paid the same.

HMRC has set out an ambition to have a 5% differential between the AA and AO grades rather than a merged spot rate but PCS said there was ‘no realistic prospect of delivering on that ambition without extra funding’.

Current projections indicate that there will be a further significant increase to the legal minimum in April 2024 meaning any differential is likely to be wiped out again next year.

PCS understands that HMRC intends to impose the pay increase. The payment will be made in October pay and backdated to 1 June.

The union has not ruled out further strike action following a series of strikes by HMRC staff across the country earlier this year, which have helped to exacerbate ongoing service problems. HMRC staff have taken part in a number of strikes since last November.

The PCS Revenue and Customs group executive committee will meet with the union’s national executive committee to plan the next steps of its pay campaign.