The Service Head, HR and Workforce Development will present this report.

Simon Kilbey (Service Head, Human Resources & Workforce Development) presented the report on the Council’s requirement to adopt a pay policy statement for each financial year and informed the Committee of the following:

·         The Council’s first pay policy statement was adopted for 2012/13 and subsequent pay policy statements were agreed for 2013/14, 2014/15 and 2015/16;

·         No supplementary guidance specifically on the pay policy was published in 2014 or 2015 and to date no specific supplementary guidance has been published in relation to the 2016/17 pay policy statement;

·         The pay policy statement sets out a policy on the level and elements of remuneration of each chief officer, a policy on the remuneration of lowest paid employees, a policy on the relationship between the remuneration of chief officers and the remainder of the workforce and a policy on other specific aspects of chief officers’ remuneration;

·         Pay Multiples, London Living Wage (LLW), Chief Executive Returning Officer Fees and Chief Officer Job Evaluation; and

·         Future legislative changes including Repayment of Public Sector exit payments, changes to Tax Treatment of Pensions, Public Sector Exit Payment Cap, Simplification of Tax and NI Treatment of Termination Payments and Trade Union Consultation.

Members enquired about the following:

London Living Wage (LLW)

·         When the LLW increase is applied, how much will it add to the annual payroll; and

·         What about the staff who are on the ‘base point’ of the spinal pay point and work for Tower Hamlets, but work outside of London.

Simplification of Tax and NI Treatment of Termination Payments

·         With the NI change, what is the figure for the Council?

Schools

·         There needs to be assurances that schools are incorporated into the consultation on the pay policy.

Simon Kilbey informed the Committee that in relation to the LLW, the financial effect to the Council would not be relatively small. As far as he was aware there were only 2 members of the staff that were on the ‘base point’ and worked outside London, but it needed to be looked at as soon as practicable.

Mark Keeble reported that the Council provided a model pay policy for Schools that was updated each year in line with changes to School Teachers Pay and Conditions.  Consultation took place with Trade Unions and through Headteachers. The content of the Schools pay policy reflects the key principles in the policy produced by the Council for non-schools staff as required by legislation e.g. the model policy for schools includes a commitment to paying LLW. Under arrangements for Local Management of Schools each Governing Body will decide whether they want to adopt the model policy as it stands, make amendments or adopt another policy.

Resolved that:

1.    The recommendations as outlined in the report be agreed;

2.    The information requested relating to the NI changes and the figure for the Council be circulated to the Committee via Committee and Member Services;

3.    The Committee agree in principle that Simon Kilbey look into the members of staff who are on the ‘base point’ of the spinal pay point and who work outside of London to be included in the LLW increase and inform the Committee of the outcome of the consultation; and

4.    Simon Kilbey looks into how the consultation with schools on the model pay policy can be broadened to include Governors as well as Headteachers and involve schools in future consultations regarding the Council’s own pay policy and report back to the Committee.