The civil service’s biggest union has said it is highly concerned that Ministry of Defence executive agency Defence Equipment & Support is planning to delay the implementation of its 2026-27 pay rise for staff until next year.
PCS has said that it cannot accept the agency’s pay offer, which is based on the Cabinet Office’s remit for a 3.5% increase for delegated civil service grades, because it falls below the standards set in its national pay policy.
Nevertheless, government employers normally implement the annual uplift for their staff – backdated to the start of the financial year – by September, even when unions are seeking improvements.
PCS said yesterday that it is “alarmed to hear from DE&S that pay increases will not be received until the early part of 2027”.
DE&S is responsible for buying and managing equipment used by the UK’s armed forces, ranging from protective clothing to fighter jets and patrol boats. It is also responsible for storing and maintaining equipment – and decommissioning it when it reaches the end of its service life.
The agency has a civilian staff of more than 10,000, including around 100 senior civil servants, according to its latest annual report and accounts.
In a statement yesterday, PCS said it recognised that further negotiations with DE&S were unlikely to result in an improved pay offer that meets its 10% demand. But it called on the agency to implement its 2026-27 award “as soon as possible” in recognition of the financial hardship currently being faced by its lowest-paid staff.
PCS added that members at DE&S had also expressed concerns about the removal of a capability-based pay pilot and the agency’s proposal for a “low” consolidated pay increase, compared with “high” non-consolidated payments.
The union said it would attend any meetings with the agency that could lead to an improved 2026-27 offer.
An MoD spokesperson said: “Our staff work around the clock to help keep the country safe and we are committed to finding a resolution for this year’s pay award.
“Discussions with the trade unions are ongoing and support is available for colleagues who may need it in the meantime.”
Although DE&S is still formally an executive agency of the MoD, it was integrated into the department’s new National Armaments Director Group at the start of the current financial year as part the recently introduced “quad structure”.
According to DE&S’s annual report and accounts for 2025-26, the executive agency’s “legacy staff” have retained their existing terms and conditions.
The report, which was published last month, states: “Work is ongoing to determine the longer-term NAD Group operating requirements, including the flexibilities and freedoms it needs to deliver.”