Agenda item

To consider a report by the HR Specialist Pay & Rewards (copy attached) to seek Council approval of the changes to the Pay Policy for 2018/19.

The Lead Member for Finance, Performance and Strategic Assets, introduced the report (previously circulated).

The Localism Act 2011 required Local Authorities to prepare pay policy statements.  The Pay Policy Statements must be approved by the Council on an annual basis and published on the relevant website.

The Pay Policy Statement reflected the current pay but the national pay awards were yet to be agreed for 2018/19.

The Chief Officer Pay Policy section reflected the current pay but the national position of the pay awards for Chief Officers and Chief Executives were yet to be agreed for 2018/19.

Central UK Government were introducing a cap at £95,000 on public sector exit payments, but there had not been any progress with this and, therefore, it was still to be introduced.  At this time it was unclear how this would operate in Wales.  On receipt of clarification, all policies on severance payments in Denbighshire County Council would be reviewed as appropriate to accommodate any relevant changes in legislation.

Central Government were also introducing legislation to enable recovery of public sector exit payments, but again there had not been any progress with this and, therefore, it was still to be introduced.   This would apply to employees returning to the public sector or sub sector within 12 months of leaving who earn over £80,000 per annum.  At this time it was unclear how this would operate in Wales. All policies and severance payments in Denbighshire County Council would be reviewed as appropriate to accommodate any relevant changes in legislation. 

Discussion took place and the following points were raised:

·       Following the review of the Chief Executive’s pay, the spot salary and performance related pay had been removed and replaced with an incremental scale.

·       It was suggested that the Council should pay the “real” living wage rather than the “national” living wage.

·       Well-being of Future Generations Act – Councillor Graham Timms expressed his concerns regarding the use of “fair pay” within the Well-being Impact Assessment.  Rather than use the phrase “fair pay” Councillor Timms suggested that using the phrase “improving pay can ….” would be a more suitable wording.  He also expressed his disagreement with the statement “by working, some employees may choose to take on private medical insurance”.  This would not, in his opinion, lead to a healthier country.   At this juncture, Cllr Julian Thompson-Hill confirmed the change of wording within the document would be considered.  He also confirmed that a Real Living Wage report would be presented at Full Council on 11 September 2018.

RESOLVED that Full Council agree to the changes to the Pay Policy Statement for 2018/19