not applicable Electoral wards affected: All Ward councillors consulted: Report to be considered at Full Council

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1 Name of meeting: Council 11 March 2015 Title of report: Tackling low pay in Kirklees Council Is it likely to result in spending or saving 250k or more, or to have a significant effect on two or more electoral wards? Is it in the Council s Forward Plan? not applicable No Is it eligible for call in by Scrutiny? No Date signed off by Director & name Is it signed off by the Director of Resources? Is it signed off by the Assistant Director (Legal Governance and Monitoring)? Cabinet member portfolio Ruth Redfern 10 February 2015 David Smith 11 February 2015 Julie Muscroft 11 February 2015 Cllr Graham Turner, Resources Electoral wards affected: All Ward councillors consulted: Report to be considered at Full Council Public or private: Public 1. Purpose of report 1.1 This report highlights the background, context and approach taken to tackling the issue of low pay in Kirklees Council. The report should be considered in conjunction with the report, The introduction of a Living Wage for Kirklees Council staff, which gives specific details regarding the financial and human resource implications of the introduction of a Living Wage for the Council workforce. 2. Key points 2.1 The Living Wage Campaign was launched in The current rate (from November 2014) stands at 7.85 per hour (outside of London) and is based on an estimate of the costs of a socially acceptable minimum standard of living for a range of household types. 1

2 2.2 The national and regional picture 2.21 The latest figures available at the time of writing show that 115 local authorities have now implemented the Living Wage, with a further 13 councils having made a firm commitment to implement it by a specific date Regionally, Barnsley, Calderdale, Doncaster, North East Lincolnshire, Rotherham, Scarborough, Sheffield, Wakefield and York pay a Living Wage The work of the Kirklees Low Paid Working Group has been carried out in conjunction with the work of the West Yorkshire and York Steering Group set up to look at how best to support lower paid workers throughout the area. The work of this group will continue to inform developments in Kirklees. (Source LGYH) 2.3 In Kirklees 2.31 Kirklees Council formally signalled its commitment towards the introduction of a Living Wage for its workforce via the adoption of a Council Resolution, agreed in March 2014 and approved at the full Council meeting in June, which urged the payment of a Living Wage for all council staff and to bring forward proposals where possible to ensure that all Kirklees contractors pay a minimum of a Living Wage to all their employees This public declaration added further impetus to the on-going work of the Kirklees Low Paid Steering Group, set up to look at the possibility of introducing a Living Wage for council workers. 2.4 The nature of in work poverty and our approach 2.41 The Joseph Rowntree Foundation recognises that improving pay should be a central plank of a strategy to address in-work poverty, but goes on to make the point that there is also a need to be clear about exactly what it can achieve. Highlighted by the fact that 44% of people in working poverty, live in households where no-one is paid less than the Living Wage, the Living Wage should be seen as just one part, albeit a significant one, of the answer to in work poverty This thinking has shaped the work of the Kirklees Low Paid Steering Group to consider the total package on offer for our lowest paid workers. The Group recognises that improving pay is vital but also that pay is not the only factor that makes a low paid job better Julia Unwin, Chief Executive of the Joseph Rowntree Foundation has said, Job quality is a burning issue, particularly in low skill, low wage sectors.. We need new thinking if we are to crack the problems around training, progression at work and job security that seem to keep increasing numbers of people stuck in entry level jobs For these reasons the Low Paid Steering Group approach has been to look at not just the Living Wage in isolation but also the total range of non-salary 2

3 benefits available to lowest paid staff, which can also help to reduce living costs a more comprehensive approach to tackling in work poverty. The work has therefore also included Focus Group sessions for low paid workers to determine what they really value about their employment, what we can do to make low paid jobs better and where barriers exist that hamper progression to better paid work, what can be done to remove them. 2.5 The benefits of paying a Living Wage 2.51 The benefits of paying a Living Wage are well documented. Research for the Living Wage Foundation reports the following (average) results for organisations that pay it: Staff absences drop by 25% Better customer service, fewer complaints and enhanced loyalty 80% of the workforce believe it has improved their performance Staff turnover dropping to 1% from 4% 80% of employers feel their staff delivered better quality of work An improved awareness of customers viewing the organisation as an ethical one Other research routinely mentions improved morale as people have an improved work life balance from not having to take on additional work to enjoy a basic standard of living, and better performance. It has also been argued that lower paid workers tend to spend a greater proportion of their income in local shops and on local services than wealthier people, thus providing an important new stimulus to the local economy. 2.6 The Link between Health Inequalities and a Living Wage 2.61 The public health argument in support of a Living Wage is clear; Kate Pickett, Professor of Epidemiology in the Department of Health Sciences at the University of York and co-author of the The Spirit Level, with Richard Wilkinson, calls it the single best action that I believe local authorities can take to reduce health inequalities Evidence shows that insufficient income is associated with worse outcomes across virtually all domains of health, including long term health and life expectancy. The negative health effects of living on a low income can be caused by material factors the inability to afford the items necessary for a healthy life - and/or psychosocial factors, such as anxiety and depression Adopting a Living Wage has been shown by studies (Investigating the effect of the London living wage on the psychological well-being of low wage service sector employees: a feasibility study by E.Flint, S. Cummins and J. Wills) to improve psychological well-being among employees. Further studies from the 3

4 US (although these should be viewed with caution as there is no universal health care system in the USA) suggest that the introduction of a Living Wage would be associated with significant improvements in life expectancy, selfrated health, depression, alcohol consumption, activity-limiting illnesses and a fall in mortality. 2.7 Fairness and Equality 2.71 Workforce analysis of the lowest paid 10% of the Kirklees Council workforce carried out by colleagues in Human Resources shows that: The lowest paid workers are generally older The lowest paid are more likely to be women The lowest paid are from BME communities Sickness levels are higher for the 10 % lowest paid 2.72 Evidence (Marmot Review: Fair Society 2010) shows how greater inequalities worsen outcomes across society on indicators such as housing, health, child wellbeing and crime. For society, the Living Wage helps to reduce income inequalities. Bearing in mind the facts highlighted above regarding the Council s lowest paid workers, the introduction of a Living Wage for Kirklees Council would work towards greater income equality within the Council The introduction of the Living Wage within the council would provide an opportunity for the council to act as an advocate for a Living Wage policy to other organisations in the District. Elsewhere, local authorities have been active in engaging other local employers and encouraging them to adopt a Living Wage. Introducing a Living Wage for its own workforce and leading by example, would allow the Council to demonstrate its leadership role within the local community and to use its alliances with neighbouring authorities (through the work of the West Yorkshire Low Pay Group, of which Kirklees is a member) to maximise the positive impact of the Living Wage, reflecting the travel to work inter-relationships and business to business relationships that exist between local authority areas Other local authorities* believe that the Public Services (Social Value) Act, which requires local authorities, when entering into public procurement contracts, to give greater consideration to economic, social or environmental wellbeing, provides an opportunity for local authorities to emphasise the local economic benefits of a Living Wage in its procurement processes. *see A Living Wage for Newcastle, point Non Salary Benefits and Focus Groups Non Salary Benefits 2.81 In addition to Living Wage considerations, there are other ways that the Council can and does support its workforce. Kirklees Council terms and 4

5 conditions, including sick pay, annual leave and support for travel to work and childcare, exceed those offered by many employers and translate into cost of living benefits. The Council also offers a wide range of generic benefits to Council staff, including: The Care First Programme which provides debt management advice Staff are enrolled in the pension scheme Kiddivouchers, which operate as a salary sacrifice so saving tax and NI and which can be worth up to 1100 depending on circumstances Free financial advice Castle and Minster Credit Union KNH Excel Discount Card (also available for Council staff) Kirklees Passport Cycle to work scheme 2.82 The Kirklees workforce is also able to benefit from free learning, covering inhouse training and personal development, on-line courses external training, coaching and mentoring. These include functional skills (English and Maths), IT skills, health and safety and support during change. This personal development will help employees progress should they wish to do so The link between health, low income and the difference a Living Wage can make has been discussed earlier in this paper. Existing provision for employees health and well- being includes confidential telephone counselling for staff and their immediate family, confidential face to face counselling for staff, help to make positive changes to lifestyle and various on-line self-help programmes Take up of non-salary benefits, especially by the lowest paid members of our workforce, should be optimised. In order to do this it is imperative that we are able to communicate with our entire workforce in a timely and convenient manner. Our lowest paid members of staff are often based on the frontline and therefore often the most difficult to communicate with due to their relative lack of access to technology and the fact that they are based at numerous locations throughout the District. Much work is being undertaken to ensure that this group of workers receive timely communication but as the importance of this cannot be overstated, the Kirklees Low Paid Steering Group believes it would be appropriate to review, and if possible improve, communication with our lowest paid members of staff Other authorities in West Yorkshire offer a similar range of non-salary benefits to Kirklees Council. However, Kirklees Council will participate in a West Yorkshire wide non-salary benefits group, set up to explore the potential of greater combined bargaining power, in order to maximise any benefits for our 5

6 own workforce. It should be noted that consideration is also being given to whether it would be financially beneficial to dedicate officer time to looking at ways in which we can increase/maximise non-financial benefits for low paid workers in the organisation. This could potentially be funded through the journey to New Council fund. A further report with details of this will be brought back to members in due course The non-salary benefits package will be further shaped to ensure that the benefits we offer are designed to best meet the needs of our lowest paid members of staff and to help make their money go as far as possible. This work will be informed by the results of the staff focus groups. 2.9 Focus Groups 2.91 Summary of key messages Very limited awareness of a benefits package offered to Kirklees employees Limited take up of current benefits package and their association as benefits was varied, some are deemed a necessity and some nice to have Focus group participants did not feel the messages relating to a benefits package had been appropriately or clearly communicated to them, particularly to those who do not have regular access to the intranet, or a computer requirement within their role The first focus group believed that having the monetary value of a benefits package added to their wage would help them financially, but would also give them the responsibility to decide, access and pay for their own benefits The second focus group believed that if the benefits package were disbanded or reduced, any monetary value would not amount to much as an addition to their wage The second focus group felt the potential scope of the benefits package, if it were reduced to the areas with the highest perceived benefit, would be of more value to low paid workers if it was targeted appropriately to help them with their needs A lot of pride goes into their job and they often go the extra mile, so they want to feel that Kirklees as an employer goes the extra mile to look after them through both their salaries and the additional benefits that come from being an employee (See appendix for full details of Focus Groups) 3. Implications for the Council 3.1 The most immediate implications of this work for the Council are on finance and human resources. These are looked at in detail in the complimentary report, The introduction of a Living Wage for Kirklees Council staff. A revised Pay Policy Statement (see Appendix revised Pay Policy Statement) that takes account of the introduction of the Living Wage will need to be approved by Full Council. A budgetary provision of 1.1million has been allocated within the overall approved Council Budget Plans for to pay for the implementation of a Living Wage of 7.88 per hour for Kirklees Council employees from 1 April

7 4. Consultees and their opinions Chief Executive and Director Group are supportive of this paper. 5. Next steps Cabinet 24 February 2015, Council 11 March Officer recommendations and reasons It is recommended: 6.1 That Council note the report and the principles of introducing a Living Wage for Kirklees Council employees, and approve the revised Pay Policy Statement (see Appendix revised Pay Policy Statement) to take account of the introduction of the Living Wage. 6.2 That it be noted that Cabinet have requested Personnel Committee to consider a report to agree changes to Terms and Conditions to facilitate the introduction of a Living Wage for Kirklees Council employees. 6.3 That the Kirklees Council approach to in work poverty includes help for individuals to move out of low paid jobs, via the provision of appropriate training and personal development, should they so wish. 6.4 That a review be undertaken of how we communicate with front line and/or low paid workers to ensure awareness of non-financial benefits, training and development opportunities is as high as possible. 6.5 That the impact of the introduction of a Living Wage for Kirklees staff be monitored in terms of benefits to the organisation. 6.6 That the link between health inequalities and a Living Wage is recognised and that the health benefits of paying a Living Wage are noted in order to send a strong message regarding the Council s commitment to the health and wellbeing of its workforce. 6.7 That the promotion of a Living Wage be regarded as a key feature of the Council s strategy to improve health and wellbeing in Kirklees. 6.8 That A Living Wage Good for Business campaign, as referred to at paragraph 2.73, led by senior politician be organised. 6.9 That the work being undertaken to look at the feasibility of a dedicated officer working on benefits for staff, with a specific mandate to ensure that the focus of non-financial benefits is on helping low paid workers make their money go further, be noted. This could potentially be funded through the journey to New Council fund. A further report with details of this will be brought back to Members in due course. 7

8 6.10 That Kirklees Council participate in a West Yorkshire wide initiative looking at non-financial benefits for staff and explore the potential of greater combined bargaining power to realise further non-financial benefits. 7. Cabinet portfolio holder recommendation That the recommendations be approved. 8. Contact officer and relevant papers Chris Rowe, Policy Officer 9. Director responsible Ruth Redfern, Director for Communities, Transformation and Change Appendix Focus Group Discussions Talking about your pay Discussions with low paid workers Nicola Boothman and Liadan Buggy Research and Consultation team Kirklees Council September 2014 Contents 1. Findings 1.1. Overview of participant roles 1.2. Testing headline awareness of the current benefits package 1.3. Testing views on the relevance of the current benefits package to people on a lower income and understanding what factors might currently limit take up 1.4. Testing views on how the council can go further to support people on lower incomes 1.5. Reshaping access 1.6. Testing views on training and development 1.7. Testing the value of the benefits package 1.8. Testing the idea of Good Work 2. Conclusion 8

9 1. Findings 1.1 Overview of participant roles Participants in the focus group all worked annualised hours, as they could find them, term time or full time. The financial pressures from the economic downturn on some of their services has meant that in recent months their contracted hours with the council have been reduced, or they have been notified about potential redundancies should buildings close or services reduce. 1.2 Testing headline awareness of the current benefits package At both focus groups participants were asked for their awareness of the current benefits package available to employees of Kirklees Council. Awareness was minimal at best, only the Metrocard reduced price travel pass was given as an example they were aware of. When presented with the full list of benefits available in the package some participants acknowledged accessing and using the reduced gym membership, Castle and Minster Credit Union and training and development The group stated that some of the benefits were news to them, while others they would simply not associate with a benefits package: rather a necessity of working within a big organisation. One focus group agreed that training and development was a necessity for staff and that annual leave, pension and work/ life balance were a given. Those participants had previously worked for large public sector organisations where they admitted similar benefits were offered, but again seen as a necessity One focus group participant who was aware of a number of the schemes available in the benefits package believed that some, including the KAL gym membership, were only available to people who access state benefits, not for employees of the council. This person noted that this is because some of the benefits are currently used by people she knows who are in receipt of means-tested benefits, or were accessed when they were in receipt of benefits. 1.3 Testing views on the relevance of the current benefits package to people on a lower income and understanding what factors might currently limit take up A number of the participants in the focus groups agreed that the healthcare support offered to Kirklees employees was a key aspect of the benefits package. Some expressed an interest in accessing the benefit, others thought of colleagues who would similarly be unaware, but would benefit from accessing the service The second focus group discussed at length the particular value of some benefits offered, particularly travel and transport, work / life balance, healthcare (and childcare). They felt that these were the most valuable and would potentially be of more benefit to low paid workers if they were concentrated on and targeted to those most in need i.e. reduce and remove the other benefits and increase the potential and access to those above. 9

10 This same focus group agreed that training and development was essential for council employees, not a benefit, though this may have been meant more in relation to required training than optional development and progression opportunities When asked if they felt the current benefits package was right for them and they were supported to access it the first focus group disagreed. Their working hours, commitments and lack of computer access meant they weren t aware the majority of benefits on offer were available, or that if they wanted to take up training and development the time to do this during their working hours would not be feasible. This sentiment was echoed during the second group where participants agreed that training and development was offered in theory but the practicality of taking part wasn t there because of the nature of their jobs being practical and difficult to find cover with minimal staff. 1.4 Testing views on how the council can go further to support people on lower incomes Both focus groups were asked what they would want from a benefits package that would be supportive to them. The first group agreed that having access to more discounts (shopping, leisure, and college) would help manage their limited income and a greater work life balance would be really beneficial to some of the participants (one participant currently works 50+ hours per week, they stated that an increase in their hourly rate would mean they could reduce their working hours). No one in low paid work should rely on food banks The second focus group agreed that by focusing on a handful of the benefits currently offered and targeting them specifically toward the lower income employees in Kirklees they could make more of a difference. 1.5 Reshaping access Limited awareness of the current benefits package meant a number of participants gave ideas of how to advertise and circulate what was available, from posters to leaflets and direct letters. Some stated that they felt the messages were not filtering down from the top and without access to the intranet, or the time to access it, they were missing out not only on the benefits package available, but other things including the intranet forum to buy and sell second hand goods (which was viewed as a benefit as it allows staff to buy and sell without fees, and with a perceived safety net by being exclusive to staff) The second group stipulated that there should not be a trade-off between employee benefits and pay. If the benefits package as it stands were reassessed to be more accessible and better targeted to the right schemes, focused and correctly publicised it would be of greater value, than the equivalent monetary value. 10

11 One participant of the second focus group went so far as to say that: People work for the council and want to because of what is offered and the support to employees, not the wage. This indicates that not having a living wage could be offset by the perceived perks of working for the council. 1.6 Testing views on training and development Some participants did not consider training and development to be a benefit as suggested by its inclusion in the benefits package, but rather a necessity for employees of a large organisation with varied jobs. One participant gave a recent example of undertaking an online training course, to which another participant made the comment that 99% of it was not relevant to them, but they were expected to undertake the course as they are an employee of a large authority. Other examples given were of mandatory training packages and updates required to perform their jobs correctly There were mixed views and levels of awareness of the training and development offered. One participant explained how they didn t feel any training and development was offered to them, and they had sought out their own development outside of Kirklees to potentially increase their employment opportunities this has come with additional costs and time pressures which this employee has to manage on their low income Another participant felt that progression opportunities were more difficult to find out about without computer access, since her service no longer prints and circulates the jobs bulletin. Some thought that job share opportunities would benefit people to give them other opportunities The whole group agreed that any progression would be difficult because of the huge gaps between roles and discrepancies in the staffing levels. One participant explained how they felt they didn t want to progress up a career ladder, they enjoyed their job, but wanted their commitment and ability to take on additional duties to be reflected in their wage: Supervisor on almost double my hourly rate, but not a lot different in what we do Responsible as a key holder, called out at night and on weekends No appreciation of work done to manage when till was broken, just questioned why we didn t contact (supervisor) There was a consensus from participants in the first focus group that the changes that have already happened within the council have meant that employees in more senior positions have been shuffled, and taken the hours that were cut from lower grade employees. Also one participant mentioned that attitudes had changed as a result of this and now employees across roles don t muck in like they used to, to help where there are staff shortages: Previously more senior officers would step down to the floor when short staffed. This doesn t happen anymore. 11

12 1.7 Testing the value of the benefits package Although the second group had in the past made less access of the benefits package than the participants of the first group, they were more interested in its potential and development for low paid workers. The benefits reflect the values of the council. It would actually change the nature of being a Kirklees employee if the benefits were lost, the relationship between the authority and the employees They went on to discuss the issue of a living wage (as they had an awareness of the scheme from national news), not thinking about any direct impact on them but the wider issue of the state benefits some low paid workers rely upon to meet their living costs. They felt that access to state benefits would be compromised if their hourly income increased under a living wage, and could potentially not meet the shortfall and mean lower paid workers would effectively be worse off, even if they were earning more There was discussion on how the benefits that comprise the council package are only relevant if you access them. In this regard if you need support it is there for you, but if there is a need to review what benefits are offered they suggested development of few, targeted to make a difference, particularly to those on lower grades When prompted, the first group concluded that an increase in wage was preferable to a benefits package The consensus from the second group was that Kirklees Council employees have impact on the community and go above and beyond, and this should be supported by Kirklees. 1.8 Testing the idea of Good Work Every participant expressed liking their job and their employment with the council. This was down to a mixture of liking what their job entailed (positive interactions and respect from local people), liking who they worked for and feeling appreciated by those they came into contact with day-to-day. Tired but happy They felt that they are part of a bigger picture and contribute to the reputation of the council, and that this should be matched and directed back to employees in thanks, wage and benefits The first focus group participants acknowledged that a number of the benefits offered to Kirklees staff wouldn t be offered from private sector companies. They had issue with their wage in relation to their current circumstances and some preferred the idea of removing all additional benefits for a higher hourly wage, whilst one participant agreed but admitted they can t take higher wage or more hours without affecting their state benefit entitlement. They mentioned additional help they receive from other organisations, including union hardship funds, but some things they have no say over, like pension contributions. 12

13 1.8.4 The second focus group discussed the benefits in relation to those they had received in previous employment, and the impact of their age on their financial circumstance. One participant lost 50% of their council wage to tax, due to receiving a private pension, but carried on as they love their job. 2. Conclusion 2.1 The in depth feedback gained though these discussion groups would not have been possible using quantitative methods and while only a small number of employees took part, they gave honest, detailed opinions which can be used alongside other intelligence to shape future plans. 2.2 This insight into the lives of employees who are usually under-represented in employee feedback demonstrates the potential for a benefits package that is developed jointly with, rather than for, our low paid workers. 3. Revised Pay Policy Statement Information Kirklees Council Pay Policy Statement for the period 1 April 2015 to 31 March 2016 Introduction Sections of the Localism Act 2011 require that the authority produce a policy statement that covers a number of matters concerning the pay of the authority s staff, principally Chief Officers. This policy statement meets the requirements of the Localism Act in this regard and also meets the requirements of guidance issued by the Secretary of State for Communities and Local Government to which the authority is required to have regard under Section 40 of the Act. The policy was first considered and approved by the full Council at the Council meeting which took place on 18th January This policy also has some connection with the data on pay and rewards for staff which the authority publishes under the Code of Recommended Practice for Local Authorities on Data Transparency and the data which is published under The Accounts and Audit (England) Regulations (2011). This policy statement does not cover or include school staff and is not required to do so. Staff transferring from the NHS generally maintain their NHS terms and conditions upon transfer to the Council. Definition of officers covered by the Policy Statement This policy statement covers the following posts: Head of the Paid Service, which in this authority is the post of - Chief Executive Statutory Chief Officers (who report directly to the Head of Paid Service), which in this authority are the posts of - Director of Resources Section 151 Officer - Director for Children and Young People s Services - Director for Commissioning, Public Health and Adult Social Care 13

14 Deputy Chief Officer who is also a Statutory Chief Officer - Monitoring Officer Assistant Director Legal, Governance and Monitoring - Director of Public Health Non-statutory Chief Officers, (those who report directly to the Head of the Paid Service) which in this authority are the posts of Director of Economy, Skills and Environment Director of Communities, Transformation & Change Deputy Chief Officers, (those who report directly to the Head of Paid Service) which in this authority are the posts of: Chief Service Officer - Cities of Service Deputy Chief Officers, (those who report directly to a Statutory Chief Officer) which in this authority are the posts of: Assistant Director of Social Care and Wellbeing for Adults Assistant Director Family Support & Child Protection Assistant Director Learning & Skills Assistant Director Commissioning & Health Partnerships Assistant Director Customer & Exchequer Services Assistant Director Financial Management, Risk, Performance and IT Assistant Director (Health Improvement) Consultant in Public Health x3 Deputy Director Infection Prevention and Control Deputy Chief Officers, (those who report directly to a non-statutory Chief Officer) which in this authority are the posts of: Assistant Director Streetscene & Housing Assistant Director Investment & Regeneration Assistant Director Communities & Leisure Assistant Director Physical Resources & Procurement Head of Human Resources Head of Transformation Head of Communications and Marketing Policy on remunerating Chief Officers The authority s policy on remunerating Chief Officers is set out on the schedule that is attached to this policy statement at Appendix Aii. It is the policy of this authority to establish a remuneration package for each Chief Officer post that is sufficient to attract and retain staff of the appropriate skills, knowledge, experience, abilities and qualities that is consistent with the authority s requirements of the post in question at the relevant time. Following the implementation of Single status, all Chief Officers are paid in accordance with the Council s pay spine including national pay awards. Policy on remunerating the lowest paid in the workforce 14

15 The authority applies terms and conditions of employment that have been negotiated and agreed through appropriate collective bargaining mechanisms (national or local) or as a consequence of authority decisions, these are then incorporated into contracts of employment. This authority has implemented a Local Living wage from 1 April Existing Spinal Column Points 5-10 within the Authority s current pay spine, will be deleted from 1 April 2015, and the new lowest pay point in this Authority, will be Grade 3, Spinal Column Point (SCP) 11; 7.88 hourly rate. The pay rate is increased in accordance with any pay settlements which are reached through the National Joint Council for Local Government Services (current pay spine shown at Appendix Aiii and the NHS pay spine for staff transferred from NHS at Appendix Aiv). Policy on the relationship between Chief Officer Remuneration and that of other staff The highest paid (actual) salary in this authority is 157,338 which is paid to Adrian Lythgo. The median (full time equivalent) salary* in this authority (not including Schools or other external organisations) is 19,742. *Median The median is the value falling in the middle when the data items are arranged in an array of either ascending or descending order. If there is an odd number of items, the median is the value of the middle item. If there is an even number of items, the median is obtained by taking the mid points of the two middle points (add middle points together and divide by 2). Excluded : Kirklees active Leisure, Kirklees neighbourhood Housing, Maintained Schools, Academies, Claiming Teachers, Temp Direct, Teachers pensions, casual and Paymaster Only Contracts, any record where the actual salary is zero. The ratio between the two salaries, the pay multiple, is 7.97:1. This authority does not have a policy on maintaining or reaching a specific pay multiple, however the authority is conscious of the need to ensure that the salary of the highest paid employee is not excessive and is consistent with the needs of the authority as expressed in this policy statement and its wider pay policy and approach. The authority s approach to the payment of other staff is to pay that which the authority needs to pay to recruit and retain staff with the skills, knowledge, experience, abilities and qualities needed for the post in question at the relevant time, and to ensure that the authority meets any contractual requirements for staff including the application of any local or national collective agreements, or authority decisions regarding pay. Policy on other aspects of Chief Officer Remuneration Other aspects of Chief Officer remuneration are appropriate to be covered by this policy statement, these other aspects are defined as recruitment, pay 15

16 increases, additions to pay, performance related pay, earn back, bonuses, termination payments, transparency and re-employment when in receipt of an Local Government Pension Scheme (LGPS) pension or a redundancy/severance payment. These matters are addressed in the schedule that is attached to this policy statement at Appendix Av. Approval of Salary Packages in excess of 100k The authority will ensure that, at the latest before an offer of appointment is made, any salary package for any new post that is not currently included within Appendix Aii (not including schools and any initial transfer to the Council under TUPE), that is in excess of 100k will be considered by full Council. The salary package will be defined as base salary, any bonuses, fees, routinely payable allowances and benefits in kind that are due under the contract. Flexibility to address recruitment issues for vacant posts In the vast majority of circumstances the provisions of this policy will enable the authority to ensure that it can recruit effectively to any vacant post. There may be exceptional circumstances when there are recruitment difficulties for a particular post and where there is evidence that an element or elements of the remuneration package are not sufficient to secure an effective appointment. This policy statement recognises that this situation may arise in exceptional circumstances and therefore a departure from this policy can be implemented without having to seek full Council approval for a change of the policy statement. Such a departure from this policy will be expressly justified in each case and will be approved through an appropriate authority decision making route. Amendments to the policy It is anticipated that this policy will need to be amended during the period it covers April 2015 end March 2016, due to forthcoming Cabinet proposals for the implementation of a local living wage for directly employed Council staff, from 1 April It is anticipated that a revised draft policy will be presented to full Council for consideration on 11 March Policy for future years This policy statement will be reviewed each year and will be presented to full Council each year for consideration in order to ensure that a policy is in place for the authority prior to the start of each financial year. 16

17 4. Renumeration of Chief Officers APPENDIX Aii) Job Category Employment Conditions either Chief Execs, Chief Officer or Local Government Scheme () Post Title Salary Band* Expenses Performance Related Pay (PRP) Arrangements Earn Back Arrangements Bonus Non Cash Benefits Election Fees Any Joint Authority Payments Any other comments A Head of Paid Service Chief Executive 155, ,999 No No No No Contract includes duties of returning officer for District, Parliamentary & European elections. The LA receives the income from National Government for the Parliamentary and European elections. For Referenda separate fees are paid to the officer. No B Statutory Chief Officers Director of Children and Young People's Services 120, ,999 15,759 Market Rate Supplement B Statutory Chief Officers Director for Commissioning, Public Health and Adult Social Care 120, ,999 B Statutory Chief Officers Director of Resources & responsibility for Section , ,999 B Statutory Chief Officers and also Deputy Chief Officer (those who report to a Assistant Director Legal & Governance 85,000-89,999 B Statutory Chief Officers and also Deputy Chief Officer (those who report to a Director for Public Health** 80,000-84,999 NHS agenda for change has common set of Terms and Conditions that applies to all staff. Entitled to C Non Statutory Chief Officers (those who report to Head of Paid Service or Director of Economy, Skills and Environment 115, ,999 17

18 C Non Statutory Chief Officers (those who report to Head of Paid Service or Director of Communities, Transformation, Change 115, ,999 D Deputy Chief Officer (those who report to Head of Paid Service) Chief Service Officer Cities of Service 50,000-54,999 E Deputy Chief Officer (those who report to a Assistant Director Commissioning & Health Partnerships 85,000-89,999 E Deputy Chief Officer (those who report to a Assistant Director Social Care and Wellbeing for Adults 80,000-84,999 E Deputy Chief Officer (those who report to a Assistant Director Customer & Exchequer Services 85,000-89,999 E Deputy Chief Officer (those who report to a Assistant Director Physical Resources & Procurement 85,000-89,999 E Deputy Chief Officer (those who report to a Assistant Director Learning & Skills 85,000-89,999 E Deputy Chief Officer (those who report to a Assistant Director Financial Management, Risk, Performance & IT** 70,000-74,999 E Deputy Chief Officer (those who report to a Assistant Director Family Support & Child Protection 90,000-94,999 F Deputy Chief Officer (those who report to Non Assistant Director Streetscene & Housing 85,000-89,999 18

19 F Deputy Chief Officer (those who report to Non Assistant Director Investment & Regeneration 70,000-74,999 F Deputy Chief Officer (those who report to Non Assistant Director Communities & Leisure 85,000-89,999 Head of HR F Deputy Chief Officer (those who report to Non 55,000-59,999 F Deputy Chief Officer (those who report to Non Head of Communications and Marketing 50,000-54,999 F Deputy Chief Officer (those who report to Non Head of Transformation 45,000-49,999 F Deputy Chief Officer (those who report to Non NHS Assistant Director (Health Improvement) 65,000-69,999 NHS agenda for change has common set of Terms and Conditions that applies to all staff. Entitled to F Deputy Chief Officer (those who report to Non NHS Consultant in Public Health 95,000-99,999 NHS agenda for change has common set of Terms and Conditions that applies to all staff. Entitled to F Deputy Chief Officer (those who report to Non NHS Consultant in Public Health 85,000-89,999 NHS agenda for change has common set of Terms and Conditions that applies to all staff. Entitled to F Deputy Chief Officer (those who report to Non NHS Consultant in Public Health Medicine 90,000-94,999 NHS agenda for change has common set of Terms and Conditions that applies to all staff. Entitled to Yes No No No No No F Deputy Chief Officer (those who report to Non NHS Deputy Director Infection Prevention and Control 65,000-69,999 NHS agenda for change has common set of Terms and Conditions that applies to all staff. Entitled to * Salary is Full Time Equivalent - salary bands quoted reflect pay levels as at 1 April each year **vacant post - quoted salary band assumes vacancy would be appointed to at entry point of relevant Grade 19

20 5. Kirklees Council Status Grades Grade SCP Grade SCP * ** *SCP4 abolished from & SCP5 to be abolished ** The Council pays the Living Wage, meaning that no staff are paid less than SCP 11 20

21 Pay bands and pay points for NHS staff transferred to the Council ; Bands are based on NHS pay spine in England (for ) ; amended locally for the 2.2% pay award uplift. The pay rate is increased in accordance with any pay settlements which are reached through the National Joint Council for Local Government Services Point Band 1 Band 2 Band 3 Band 4 Band 5 Band 6 Band 7 Band 8 Band 9 Range A Range B Range C Range D 1 14,609 14, ,975 14,975 3** 15,343 15, , , ,629 16, ,181 17, ,808 17, , , ,252 19, ,692 19, , , , ,858 21, ,500 22, , , , ,350 26, ,412 27, ,515 28, , , ,441 31, ,467 32, ,622 33, ,290 35, , , , ,102 40,102 21

22 34 41,450 41, , , ,713 46, ,124 48, , , ,208 56, ,747 57, , , * 67,372 67, * 69,297 69, , , * 79,563 79, * 83,414 83, , , * 96, * 100,619 * Pay spine points 45 and 46 at the top of pay band 8C; pay spine points 49 and 50 at the top of pay band 8D and pay spine points 53 and 54 at the top of pay band 9 are annually earned ** The Council pays the Living Wage, meaning that no staff are paid less than SCP 3 Source: NHS terms and conditions of service handbook Pay circular (AforC) 3/2013: amendment number 29 22

23 7. Range of Policies Aspect of Chief Officer Remuneration Recruitment Pay Increases Additions To Pay Performance Related Pay (PRP) Earn-Back ( Withholding an element of base pay related to performance) Bonuses Authority Policy The post will be advertised and appointed to at the appropriate approved salary for the post in question level unless there is good evidence that a successful appointment of a person with the required skills, knowledge, experience, abilities and qualities cannot be made without varying the remuneration package. In such circumstances a variation to the remuneration package is appropriate under the authority s policy and any variation will be approved through the appropriate authority decision making process. The authority will apply any pay increases that are agreed by relevant national negotiating bodies and/or any pay increases that are agreed through local negotiations. Following the implementation of Single status, all Chief officers are paid in accordance with the Council s pay spine including national pay awards. The authority will also apply any pay increases that are as a result of authority decisions to significantly increase the duties and responsibilities of the post in question beyond the normal flexing of duties and responsibilities that are expected in senior posts. The authority would not make additional payments beyond those specified in the appropriate policies i.e. Market Rate Supplement, Recruitment and Retention, Acting Up or Honoraria payments. The authority does not operate a performance related pay system as it believes that it has sufficiently strong performance management arrangements in place to ensure high performance from its senior officers. Any areas of under-performance are addressed rigorously by utilising the Performance Management system. The authority does not operate an earn-back pay system as it believes that it has sufficiently strong performance management arrangements in place to ensure high performance from its senior officers. Any areas of under-performance are addressed rigorously. The authority does not pay bonus payments to senior officers. 23

24 Termination Payments The authority applies its normal redundancy payments arrangements to senior officers and does not have separate provisions for senior officers. The authority also applies the appropriate Pensions regulations when they apply. The authority has agreed policies in place on how it will apply any discretionary powers it has under Pensions regulations. Any costs that are incurred by the authority regarding senior officers are published in the authority accounts as required under the Accounts and Audit (England) Regulations Transparency Re-employment of staff in receipt of an Local Government Pension Scheme Pension or a redundancy/severance payment The authority meets its requirements under the Localism Act, the Code of Practice on Data Transparency and the Accounts and Audit Regulations in order to ensure that it is open and transparent regarding senior officer remuneration. The authority is under a statutory duty to appoint on merit and has to ensure that it complies with all appropriate employment and equalities legislation. The authority will always seek to appoint the best available candidate to a post who has the skills, knowledge, experience, abilities and qualities needed for the post. The authority will therefore consider all applications for candidates to try to ensure the best available candidate is appointed. If a candidate is a former employee in receipt of an LGPS pension or a redundancy payment this will not rule them out from being re-employed by the authority. Clearly where a former employee left the authority on redundancy terms then the old post has been deleted and the individual cannot return to the post as it will not exist. The authority will apply the provisions of the Redundancy Payments Modification Order regarding the recovery of redundancy payments if this is relevant. Pensions Regulations also have provisions to reduce pension payments in certain circumstances to those who return to work within the local government service. 24