The UK civil service is grappling with declining morale and rising job churn, despite average pay almost rebounding to 2010 levels, according to the Whitehall Monitor report by the Institute for Government (IfG).

The survey revealed that civil service pay increased for the 2023-24 financial year, following the government’s resolution of industrial disputes.

However, the report highlighted a concerning dip in morale, with the mean engagement score dropping for the third consecutive year. Churn rates also climbed to 12.7%, reflecting increased movement between departments or exits from the civil service altogether.

The IfG report underscores the challenges faced by Prime Minister Keir Starmer in reforming and invigorating the civil service.

In a December keynote speech, Starmer criticized Whitehall, saying “too many people in Whitehall are comfortable in the tepid bath of managed decline.” His remarks signaled a push for a more dynamic civil service, though they also sparked some discontent.

The survey found that satisfaction with pay in Whitehall rose by three percentage points to 32%, with the average salary nearing £34,000, nearly matching its 2010 real-term value. Pay is now only 0.7% lower than 15 years ago, aligning closely with the private sector, which saw a 0.9% decrease since 2010. However, senior-grade salaries remain 24% below their 2010 levels in real terms.

Despite these improvements, overall morale continues to slide. The mean engagement score fell to 60.7% in 2023, a decline from 63.6% in 2020. This drop contrasts with a steady rise in morale from 2010 until recent years.

Leadership and Change Management Under Scrutiny

The decline in morale has been attributed to dissatisfaction with leadership and the handling of change, coinciding with the establishment of new departments focused on science, energy, and business.

The civil service people survey, using median figures, reported a slight increase in morale to 61%, up from 59%. This metric, assessing officials’ motivation and attachment to their organization, offers a different perspective on the state of employee engagement.

The rise in job churn is partly driven by the creation of three new departments under former Prime Minister Rishi Sunak. However, the percentage of officials leaving the civil service entirely decreased from 9% to 7.4% over the year.

Starmer’s “mission-led” government approach, introduced last month, emphasizes a commitment to change and rejects complacency. While he later acknowledged the unique contributions of civil servants, he maintained his stance on the need for reform within Whitehall.

Jack Worlidge, the lead author of the IfG report, highlighted the necessity for long-term commitment to address underlying issues within the civil service, such as uncompetitive pay, grade inflation, and high turnover rates. “There are welcome signs that political leaders … understand the scale of change needed in the civil service,” Worlidge noted. However, he emphasized the importance of sustained efforts to implement meaningful reforms.

Dave Penman, general secretary of the FDA union for senior civil servants, echoed this sentiment, cautioning Starmer against using divisive rhetoric reminiscent of “Trumpian” language. Penman stressed the need for the government to secure the support of civil servants to drive effective change.