The Fifth Report of the Prison Service Pay Review Body (PSPRB) on the pay of in-charge governors and operational managers, prison officers and related grades in England and Wales in 2006 has been published today and copies will be placed in the Library. I would like to thank the Chair and members of the PSPRB for their hard work in producing their recommendations.The PSPRB have recommended an increase in basic pay for all grades of £425 or 1.6 per cent., whichever is the greater. The recommendation will lead to a growth in the pay bill of 2.57 per cent. to £849 million (excluding oncosts), which is at the upper limit of affordability.The Home Secretary has decided that the recommendations will be implemented in full, with effect from the operative date of the award of 1 April 2006. The cost of the award will be met from within the existing budget allocation for the service.The Government desire significant improvement in the Prison Service pay and grading structure. It is asking the trade unions to be fully engaged in talks and to commit to:1. Participation in the development of the Service wide job evaluation system, initially through positive engagement with the eastern area pilot, which has already commenced.2. Work in partnership with Prison Service management and take forward the principles covered in last year's heads of agreement talks.3. Immediately reengage with the performance improvement process.4. Reform the Whitley council arrangements with a view to establishing long-term partnership agreements based upon single table talks and compliance with the information and consultation of employees directive.The Home Secretary expects the trade unions to engage with the Prison Service in talks towards workforce reform based on these principles. The outcome of those talks are likely to inform his remit to the Pay Review Body in respect of next year's pay review.The key Pay Review Body recommendations, which take effect from 1 April 2006, are:An increase in basic pay for all grades of £425 or 1.6 per cent., whichever is the greater;Pay range minima for operational managers to be increased by six spine points, with no change to the range maxima;Two additional rates of locality pay at £4,250 and £250. All other rates remain unchanged;All specialist allowances to remain at their current level;All other allowances and ex gratia payments to be uprated by 1.6 per cent.;RHA for operational managers to be uprated by 1.6 per cent.;Care and maintenance of dogs allowance to be uprated by 3.2 per cent.;Notional rents to be increased by 3.2 per cent.

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