The Home Office has put together a three-year flexible pay packacge that would see delegated grade civil servants in the department get a minimum uplift of 6% in 2025-26, 5.5% in 2026-27 and 4% in 2027-28.
The minimum uplifts, which will mostly be either fully consolidated or a combination of consolidated and non‑consolidated pay, are above the standard pay remit guidance in return for some staff giving up certain terms and conditions.
Payments are to be backdated to 1 July 2025, excluding a 3% interim payment that was paid in December 2025.
As part of the deal, a break clause will activate if the civil service pay remit for delegated grades exceeds 5.5% in 2026-27 or 3.6% in 2027-28.
The PCS union will be holding a ballot on the deal from 9-30 March and is recommending that its members vote to accept the deal. It said feedback so far has been “overwhelmingly positive, with members acknowledging that the offer represents one of the most substantial pay improvements seen in the department in many years”.
The deal would see AOs and EOs – which represent around two-thirds of the department’s workforce – get consolidated increases of up to 21%.
The AO spot rate would be £30,920 (national) from 1 July 2026, moving to £32,360 in 2027, with the London spot rate set £4,000 higher. The EO spot rate would be introduced in 2027 at £36,000 nationally and £40,000 in London.
Meanwhile, the lowest-paid staff in the Home Office (AAs) would move to £14.36 per hour this year and above £15 per hour next year, with an extra £4,000 a year more for AAs in London.
Actual percentage increases will vary by region and position on the pay range.
The pay award is designed to be cost neutral and will mean the following terms and conditions changes:
- Moving all staff to modernised terms and conditions from July 2026 with non‑consolidated compensation of between £3,000-£5,000, that will be pensionable (in years two and three) for staff moving from pre-modernised terms
- Annualised Hours Allowance reforms phased to April 2027
- Reduction of 300 agency workers; conversion of 200 to Home Office staff
- Phase out of Gatwick pay range with £1,500 compensation
- Removal/reduction of certain allowances and some allowances moving to being non-pensionable.
For those moving to modernised Home Office terms, changes will include: annual leave being reduced by 1.5 days; sick pay going down from six months full pay and six months half pay to five months full pay and five months half pay; London hours moving from 36 to 37 hours per week; and "all grades and all working patterns can be compulsory permanently transferred to any civil service post within the UK and abroad - if deemed reasonable taking into account individual circumstances".
The changes to terms and conditions also include improvements to parental leave. For all new periods of leave beginning on or after 1 July 2026:
- Paternity leave will increase from two to four weeks paid
- Occupational maternity pay will increase from 26 to 39 weeks paid
- Adoption leave will be updated to mirror improved maternity and paternity provision
- Shared parental leave will be updated to mirror improved maternity and paternity provision with a maximum of 37 weeks paid to be shared.
For some specialist and legacy grades which remain in operation but are frozen, employees on these grades will not receive a consolidated award but will be offered the opportunity to move to the Home Office generalist pay ranges and, if on pre-modernised terms, modernised terms and conditions.
PCS said several proposed efficiencies were removed after it challenged them.
A Home Office spokesperson said: “The three-year pay deal that we have been negotiating with our trade unions will be cost neutral overall and follows an assessment of pay and conditions across the department.
“It will mean we can deploy our workforce more efficiently and attract and retain the best talent to deliver on our priorities of securing the border, making our streets safer and protecting homeland security."