Local Government Transparency Scheme
Pay policy statement
Last updated September 2022
Contents
Introduction
1. This pay policy statement under section 38 of the Localism Act 2011 shall apply for the financial year 2022-23 and each subsequent financial year, until amended.
2. The purpose of the statement is to provide transparency with regard to the Council’s approach to setting the pay of its employees by identifying:
- the methods by which remuneration of all employees are determined, including the remuneration of its most senior staff;
- the arrangements for ensuring the provisions set out in this statement are applied consistently throughout the Council.
The Council's policies for setting remuneration
3. In determining its grading structure and setting remuneration levels for all posts, the Council takes account of the need to ensure value for money in respect of the use of public expenditure, balanced against the need to recruit and retain employees who are able to meet the requirements of providing high quality services to the community, delivered effectively and at times which those services are required. The grade of a post is determined by application of an agreed Job Evaluation process.
4. The Council returned to applying nationally negotiated pay awards with effect from 1 April 2021. The figures shown in paragraphs 5 and 11 below do not take account of the pay award for April 2022 as it is not known at the time of adoption of the pay policy statement. With the exception of Chief Officers and the Chief Executive, historically, the Council used the nationally negotiated pay spine as the basis for its local grading structure. As a result of the local pay arrangements implemented in the period from 2014 to 2021, the salary values for spinal column points have diverged from the national pay spine. The values of spinal column points are therefore those developed by Wyre Forest District Council.
5. With effect from 1 October 2022, the salary bands applying to staff covered by the NJC for local government services are set out in the table. The values of the pay ranges will change over time as national pay awards for 2022 and subsequent years are applied. It is not possible to predict national pay awards and this pay policy statement will not be updated solely to take account of such national pay awards.
| Salary Band | Spinal column points | Annual pay range at 1 October 2022 |
|---|---|---|
| 1 | 19-21 | £22,723.00 - £24,255.00 |
| 2 | 22-24 | £24,826.00 - £26,257.00 |
| 3 | 25-28 | £27,023.00 - £29,554.00 |
| 4 | 29-32 | £30,639.00 - £33,423.00 |
| 5 | 33-36 | £34,344.00 - £36,845.00 |
| 6 | 37-40 | £37,819.00 - £41,068.00 |
| 7 | 41-44 | £42,095.00 - £45,170.00 |
| 8 | 45-48 | £46,137.00 - £49,259.00 |
| 9 | 49-52 | £50,269.00 - £53,498.00 |
6. All other pay-related allowances are the subject of either nationally or locally negotiated rates, having been determined from time to time in accordance with collective bargaining machinery and/or as determined by Council Policy.
7. New appointments will normally be made at the minimum of the relevant grade, although this can be varied where necessary to secure the best candidate. From time to time it may be necessary to take account of the external pay market in order to attract and retain employees with particular experience, skills and capability. Where possible, the Council will ensure the requirement for such approaches is objectively justified by reference to clear and transparent evidence of relevant market comparators, using appropriate data sources available from within and outside the local government sector.
8. There are a number of pay points within each band. For staff not on the highest point within the band, there is a system of annual progression to the next point on the band. Faster progression is possible under the Council’s policy on merit increments.
9. With regard to equal pay requirements of the Equality Act 2010, the Council ensures that there is no pay discrimination within its pay structures and that all pay differentials can be objectively justified through the use of equality proofed job evaluation mechanisms which directly relate pay grades to the requirements, demands and responsibilities of the role.
10.The posts of Chief Officers and the Chief Executive, who make up the Corporate Leadership Team, are covered by the relevant JNC for such posts. The Council uses spot pay rates. In order to provide some flexibility in future decisions about recruitment or adjustments to pay of serving staff without the need to amend this policy statement, the statement sets a range within which salary for these posts will fall. The values of the spot pay shown in the table will change over time as national pay awards for 2022 and subsequent years are applied. It is not possible to predict national pay awards and this pay policy statement will not be updated solely to take account of such national pay awards:
| Grade | Range | Spot pay rate (value at time of preparation of this statement) |
|---|---|---|
| Chief Officer | £53,000-£75,000 | Varies depending on responsibilities etc. of post (6 posts on this grade as at September 2022). |
| Chief Executive | £100,000.00 - £128,000.00 | £121,685.00 |
Number of employees per salary band;
- band 1: 64
- band 2: 68
- band 3: 91
- band 4: 43
- band 5: 32
- band 6: 9
- band 7: 5
- band 8: 6
- band 9: 5
Chief Officers
11. The definition of ‘Chief Officer’ in section 43 of the Localism Act means that it includes many posts falling within the main pay scales. At the time of preparation of this statement, they include posts that range from Band 6 to Band 9 (although not all employees in those bands fall within the definition of ‘chief officers’).
12. The Council’s policy and procedures with regard to recruitment of chief officers are set out in the Officer Employment Procedure Rules in Section 13 of the Council’s Constitution. The determination of the remuneration to be offered to any newly appointed chief officer will be in accordance with this pay policy statement and other relevant policies in place at the time of recruitment. In the case of recruitment of Chief Officers and the Chief Executive, the decision on remuneration will be taken by the Appointments and Appeals Committee. Where the Council is unable to recruit to a post at the designated grade, it will consider the use of temporary market forces supplements in accordance with its relevant policies.
13. Where the Council remains unable to recruit chief officers, or where there is a need for interim support to provide cover for a vacant substantive chief officer post, the Council will, where necessary, consider engaging individuals under contracts for service. These will be sourced through a relevant procurement process ensuring the Council is able to demonstrate value for money from competition in securing the relevant service. In accordance with IR35, the Council would normally expect to deduct tax and national insurance from payments to any individual providing interim support.
14. The Council does not normally pay any bonuses or performance related pay to its chief officers.
Additional payments to Chief Officers
15. In addition to basic salary, the Council may pay other elements of ‘additional pay’ which are chargeable to UK Income Tax and do not solely constitute reimbursement of expenses incurred in the fulfilment of duties, which could include returning officer fees or honoraria. Returning officer fees in respect of parish level electoral events are agreed from time to time in a meeting of full Council
Lowest Paid Employees
16. The Council’s definition of lowest paid employees is people employed in Band 1 of the Council’s grading structure. This is because it is the lowest pay band operated by the Council for permanent staff who are not employed as Apprentices.
Apprentices appointed by the Council will be paid at the following rates:
|
First Year of Apprenticeship |
Rate |
2022-23 |
|---|---|---|
|
Regardless of Age |
60% of specified rate - currently £8.45 |
5.07 |
|
2nd year + of Apprenticeship |
Rate |
|
|
Aged 16 -17 years |
65% of specified rate - currently £8.45 |
5.49 |
|
Aged 18 - 20 years |
National Apprenticeship Rate (01.04.2022) |
6.83 |
|
Aged 21 - 22 years |
National Apprenticeship Rate (01.04.2022) |
9.18 |
|
Aged 23+ |
National Living Wage Rate |
9.50 |
Relationship between remuneration of chief officers and remuneration of employees who are not chief officers
The pay levels within the Council define the multiple between the median salary of its chief officers and the median salary of all employees. At the time of preparation of this policy statement, the ratio was 1:2.5. This calculation is based on employees in post and actual salaries as at January 2022 (excluding Apprentices). The Council’s policy is that this ratio should remain below 1:3.
Payments of termination etc.
18. The Council’s approach to statutory and discretionary payments on termination of employment is set out within its Redundancy Policy which includes the written statement in accordance with regulations 5 and 6 of the Local Government (Early Termination of Employment) (Discretionary Compensation) Regulations 2006. At the time of preparation of this policy statement, the policy is:
- to pay statutory redundancy payments in accordance with the Employment Relations Act 1998, which provides for a maximum calculation equivalent to up to 30 weeks’ pay. The payment will be based on an employee’s actual weekly salary rather than the figure set by the Government.
- not to make discretionary lump sum payments or to make payment in lieu of notice in cases of termination of employment.
19. The Council’s policy is normally not to make any awards under the Local Government (Discretionary Payments) (Injury Allowances) Regulations 2011 : this constitutes its written policy under the regulations.
20. The Council’s decisions on use of powers to enter any Settlement Agreement under section 23 of the Enterprise and Regulatory Reform Act 2013 will be taken by the Appointments and Appeals Committee where the decisions relate to either the Chief Executive or a Chief Officer. Decisions on entering Settlement Agreements with other employees will be taken by the Chief Executive.
Publication of information
21. This statement will be published on the Council’s website.
In accordance with regulation 7(3) of, and Schedule 1 to, the Accounts and Audit Regulations 2015, for posts where the remuneration in a year is £50,000 or more, the Council’s Annual Statement of Accounts will include a note setting out the total amount of
- salary, fees or allowances paid to or receivable by the person in the current and previous year;
- any bonuses so paid or receivable by the person in the current and previous year;
- any sums payable by way of expenses allowances that are chargeable to UK income tax;
- any compensation for loss of employment and any other payments connected with termination;
- any benefits received that do not fall within the above
The statement of accounts is available on the Council’s website.
23. In accordance with the Local Government Transparency Code, the Council also publishes information about remuneration of the Chief Executive, Chief Officers and staff in the transparency section of its website.
This information is updated from time to time and includes a list of “chief officers” as defined in the Localism Act 2011.