Consideration was given to the report of the Chief Executive on the Review of the Local Pay Award 2021.  Pay award discussions had been on-going with Staff Side/UNISON and Members’ views were being sought on proposals for a pay settlement to enable negotiation with Staff Side/UNISON to be progressed. 

The Assistant Director Resources outlined the key issues to be taken into account which included current inflation and future trends; the Government’s expectation  that local government follow the policy of no cost of living increase for staff earning a full time equivalent salary of more than £24,000 (however, a flat rate of at least £250 per annum to be paid for staff earning below this threshold); the current financial year’s budget provision; the Living Wage (from the Living Wage Foundation separate from the National Living Wage), which sought to provide a socially acceptable wage level; and recruitment trends.  Any pay award agreed for staff would also be applied to Members’ allowances.

As part of setting the annual revenue budget for this year, Rother’s pay award for 2021 was budgeted at 2% and this figure had been used in the agreed Medium-Term Financial Plan for future years.  Members were reminded that any enhancement beyond this budgeted figure would require full Council approval and have to be found from within the existing budgets and would further increase the financial pressure on the Council.

Members were mindful of the current uncertain climate and sought clarity on a number of issues prior to final determination.  The following points were noted during the discussion:

•           Members congratulated and thanked staff at all levels of the Council for their hard work during the COVID-19 pandemic and were keen to show their appreciation.  A 1% increase across the board was suggested subject to a minimum increase of £250 for one year, with a continued commitment to matching the Living Wage from the Living Wage Foundation;

•           Members suggested that Members’ Allowances should not be linked to any pay award agreed for staff. However, as any changes to the current agreed Members’ Allowance Scheme would have to be considered by an Independent Renumeration Panel (IRP), which would be reconvened towards the end of 2022, discussions were to be deferred until that time;

•           Members suggested that a working group be set up to consider the previously agreed ‘root and branch’ review of the pay structure and it was agreed that the Chief Executive would hold a briefing for Members in the first instance; and

•           Members considered the potential wider implications of agreeing a 2% increase in future local government financial settlements and that the lower increase could provide an amount of savings for the future or an opportunity to direct the saving towards other priorities.

Members were keen to reward and recompense the staff employed by the Council and therefore agreed that the Council continued to support the Living Wage Foundation for the lower paid permanent staff and that a 1% pay award across the board for one year be approved.

RESOLVED: That:

1)         the Council’s commitment to matching the Living Wage from the Living Wage Foundation be continued for lower paid permanent staff; and

2)         a one year pay settlement increase of 1% across the board for 2021/22 be approved, subject to a minimum increase of £250.