Agenda for Change: What will it mean for you?

Transcription

1 Agenda for Change: What wi it mean for you? A guide for staff

2 READER INFORMATION Poicy HR / Workforce Management Panning Cinica Document Purpose Estates Performance IM & T Finance Partnership Working Poicy ROCR Ref: Gateway Ref: 3538 Tite Agenda for Change What wi it mean for you? Author Agenda for Change Project Team Pubication date October 2004 Target Audience A NHS staff excuding medica and denta staff Circuation List Description An overview of the new NHS pay system Cross Ref Superseded documents Action required Timing Contact detais For recipient use The New NHS Pay System An Overview For dissemination within organisations in support of impementation of new pay system from 1 December 2004 AfC Project Team Room 2N35D Quarry House Leeds LS2 7UE First pubished October 2004

3 Message to staff from John Hutton MP Minister of State for Heath I am deighted to present this booket on Agenda for Change to NHS staff. It sets out the way the origina Agenda for Change proposas have deveoped foowing testing in the tweve Eary Impementer sites in Engand and modeing in Scotand. The new pay system provides a cear government commitment to our most important resource our staff and wi support them in the high quaity patient care that they deiver. Agenda for Change provides you as an NHS empoyee with a unique opportunity to be part of the decision-making process. It offers a new way of ooking at job roes in the organisation. It wi ensure fair pay, the deveopment of staff and the deivery of the services we need in a word cass NHS. We now need to coectivey work together on this at both a nationa and a oca eve to reaise the potentia in Agenda for Change and to demonstrate the benefit of this extra investment. John Hutton Agenda for Change: What wi it mean for you? 1

4 Foreword In June 2003, tweve NHS organisations in Engand began eary impementation of Agenda for Change a new NHS pay system. Since March 2004, a nationa group with Trade Union and Management representatives has been reviewing the experiences of the eary impementer (EI) sites. The group s aim has been to identify the key essons from the eary impementation stage and agree any changes needed to support an effective nationa ro-out of the system. The review is now compete and this booket provides staff with an overview of the agreed new system. The review of the EI sites estabished that overa the new pay system had worked we and that staff and managers were generay positive about its impact on their organisations. The vast majority of EI sites benefited from improved partnership working with one site saying this was creating a much deeper and more serious commitment to partnership than anything that has gone before. On top of this, there is good evidence of rea progress across a sites in impementing new ways of working and improving career structures. This incudes exampes of roe deveopment, roe enhancement and the creation of new roes which have a heped change the way we provide services, bringing benefits for staff and patients aike. 2 Agenda for Change: What wi it mean for you?

5 The review aso highighted the need for some changes to the new pay system. These changes have now been made and the most significant reate to: The Job Evauation Scheme over 250 agreed nationa profies have been pubished with improvements in the matching procedure and cearer guidance to ensure that non-cinica jobs are propery banded. The Knowedge and Skis Framework (KSF) foowing wider testing, the KSF has been improved and revised for nationa ro-out. On-ca arrangements current arrangements, whether nationa or oca, can remain in pace for up to four years. High cost area payments a new definition of the inner, outer and fringe boundaries has been agreed. The NHS minimum wage has increased to 5.69 (2004/05 rates), with an opportunity to progress higher within pay band 1. A new pay band 9 has been introduced for some of the most senior staff. Unsocia hours there wi be an interim regime based on Whitey to cover a staff, except for ambuance staff who wi use the tested Agenda for Change system. Agenda for Change: What wi it mean for you? 3

6 Contents Message to staff from John Hutton MP, Minister of State for Heath 1 Foreword 2 The new pay system an introduction 5 What wi the new system ook ike? 6 Working hours, overtime and annua eave 9 Recognising work outside norma hours 11 Pay in high cost areas 13 Recruitment and retention premia 15 The NHS Knowedge and Skis Framework 16 Moving onto the new system 18 Nationa decisions on pay two new bodies 20 Where to get more information 21 4 Agenda for Change: What wi it mean for you?

7 The new pay system an introduction The new NHS pay system is based on the principe of equa pay for work of equa vaue. It wi offer: Greater scope to create new kinds of jobs, bringing more patientcentred care and more varied and stimuating roes for NHS staff. Fairer pay based on job evauation. Movement towards harmonised conditions of service for NHS staff. Better inks between career and pay progression. Who wi be covered? The new pay system wi appy to a directy empoyed NHS staff, except doctors and dentists and the most senior managers at or just beow board eve. If you are currenty empoyed on a oca trust contract that is a contract that is not based on nationa Whitey Counci pay and terms and conditions you wi have a choice over whether or not to move to the new system. When wi it be impemented? Subject to the Trade Union second baot process, nationa ro-out is due to be impemented across the NHS from December 2004, with an effective date for backpay of October 2004 for a eements except revised working hours, which wi take effect from December Each trust wi begin the process of moving staff to the new pay system from 1 December 2004, with the expectation that a staff wi be moved by September Your empoyer wi be setting out over the next few weeks the timetabe for moving across to the new pay system. Agenda for Change: What wi it mean for you? 5

8 What wi the new system ook ike? This booket describes the arrangements for staff on the two new Agenda for Change pay spines: Pay Spine Two: for staff within the new extended remit of the Nursing and Other Heath Professions Review Body, and Pay Spine Three: for a other directy empoyed NHS staff, with the exception of the most senior managers and doctors and dentists. These pay spines wi be divided into nine pay bands (see Tabe 1). There wi be severa pay points within each pay band. Your post wi be paced in the correct pay band using the new NHS Job Evauation Scheme by either: matching your post to an appropriate nationa profie, or a oca job evauation. This process wi incude discussions with individuas or representative individuas and managers to propery estabish the demands of each job. 6 Agenda for Change: What wi it mean for you?

9 Tabe 1. Band Minimum* Maximum* 1 11,135 12, ,508 14, ,266 15, ,504 18, ,114 23, ,630 29, ,106 34,417 8 Range A 33,298 39,958 8 Range B 38,786 47,949 8 Range C 46,671 57,539 8 Range D 55,941 69, ,063 83,546 *These figures are based on 2004/05 rates and excude the temporary transitiona points which wi ony be used in moving staff on to the new system. The new NHS Job Evauation Scheme The NHS Job Evauation Scheme is a means of fairy rewarding peope by measuring their job-reated skis, knowedge and responsibiities. The scheme has been deveoped especiay for NHS staff and wi be used to hep ensure that staff receive equa pay for work of equa vaue. The detaied assessment of each post using the Job Evauation Scheme wi determine the correct pay band for each post, and so the correct basic pay. Many jobs have been evauated nationay and can be used for matching posts to the new pay bands. These are avaiabe on the Department of Heath s Agenda for Change web pages (see Where to get more information on page 21). Progressing up your pay band Within each band, there wi be a number of pay points. As you successfuy deveop your skis and knowedge, you wi normay progress through one pay point each year, up to the maximum in your pay band. At two defined gateway points in each pay band, progression wi be based on demonstrating the agreed knowedge and skis Agenda for Change: What wi it mean for you? 7

10 appropriate to that part of the pay band using the NHS Knowedge and Skis Framework. A staff joining pay band 5 as new entrants wi have acceerated progression through the first two points in six-monthy steps, providing their standard of practice is satisfactory. This 12-month period wi be referred to as preceptorship. New terms and conditions There wi be one set of terms and conditions appying to a staff groups, except for those working unsocia hours (see Recognising work outside norma hours on page 11). These new conditions wi incude the number of hours worked in a fu-time week and the number of annua eave days. If your terms and conditions are very different in the new system, you wi be given an agreed period of time to make the changes. Enhancements to basic pay In addition to basic pay there wi aso be: extra pay for staff who work in high cost areas (see Pay in high cost areas on page 13) additiona pay for peope in posts where recruitment and retention of staff is especiay difficut due to competition from outside the NHS (see Recruitment and retention premia on page 15). 8 Agenda for Change: What wi it mean for you?

11 Working hours, overtime and annua eave Standard hours From 1 December 2004 there wi be a phased move to a standard working week for a fu-time NHS staff of hours per week, excuding mea breaks. Overtime payments A staff in pay bands 1 to 7 wi be eigibe for overtime payments for work in excess of the standard hours working week. There wi be a singe harmonised rate of time-and-a-haf for a overtime, with the exception of work on the eight genera pubic hoidays, which wi be paid at doube time. Senior staff in pay bands 8 and 9 wi not be entited to overtime payments. Agenda for Change: What wi it mean for you? 9

12 Annua eave Staff wi receive the foowing entitement to annua eave: Tabe 2. Length of service On appointment After 5 years service After 10 years service Annua eave + Genera Pubic Hoidays 27 days + 8 days 29 days + 8 days 33 days + 8 days There wi be a five-year protection period for annua eave entitements that exceed the new harmonised entitements. 10 Agenda for Change: What wi it mean for you?

13 Recognising work outside norma hours Unsocia hours payments Athough the eventua aim of Agenda for Change is to harmonise a conditions, an interim arrangement or regime wi appy to unsocia hours payments unti 1 Apri 2006, using one of the foowing provisions: Either: Staff wi receive payment for unsocia hours using the mechanism described within their reevant current Whitey Counci provision but now using Agenda for Change basic pay rates. Or Staff on contracts which combine Whitey basic pay with ocaydetermined unsocia hours provision wi, on assimiation to the Agenda for Change system, continue to receive unsocia hours payments in accordance with their existing oca arrangements. Or Ambuance staff who are empoyed by Ambuance Trusts and work unsocia hours wi receive unsocia hours payments in ine with those used in Eary Impementer sites. Or Staff who currenty have no Whitey provision on unsocia hours wi receive unsocia hours payments in ine with those for nurses and midwives. Agenda for Change: What wi it mean for you? 11

14 The NHS Staff Counci wi review and deveop new harmonised arrangements to appy from 1 Apri 2006, based on further monitoring of eary impementer sites and evidence from the nationa ro out. On-ca arrangements Staff who have to be avaiabe to provide on-ca cover may remain on any current agreements, whether these are oca or nationa, for a fouryear period. Aternativey, they may coectivey agree to use a fixed pay suppement, as outined in Tabe 3: Tabe 3. Frequency of On-Ca Vaue of Suppement as Percentage of Basic Pay 1 in 3 or more frequent 9.5% 1 in 6 or more but ess than 1 in 3 4.5% 1 in 9 or more but ess than 1 in 6 3.0% Between 1 in 12 or more but ess than 1 in 9 2.0% Less frequent than 1 in 12 By oca agreement A staff who are caed into work during a period of on-ca wi receive recompense for the actua work done at the overtime rate. 12 Agenda for Change: What wi it mean for you?

15 Pay in high cost areas A existing schemes to recognise high cost areas wi cease and be repaced by new harmonised aowances for London and the Fringe areas, or by recruitment and retention premia outside London. London aowances and Cost of Living Suppements (COLS) wi be repaced by new harmonised aowances. New definitions of the inner, outer and fringe boundaries by reference to Primary Care Trust geographic areas wi aso be introduced. However, empoyers wi have scope to deveop oca harmonised rates of payment where organisations cross boundaries, providing they agree with neighbouring organisations. There wi be extra investment in London pay to recognise the higher cost of iving there, with cear gains for most staff. Aowances wi be cacuated on basic pay (pus the vaue of any ongterm recruitment and retention premium), but subject to a minimum and maximum eve of extra pay as shown in Tabe 4. Tabe 4. % of basic pay Minimum* Maximum* Inner London 20% 3,197 5,328 Outer London 15% 2,664 3,729 Fringe 5% 799 1,385 * These are at 2004/05 rates. Agenda for Change: What wi it mean for you? 13

16 This approach coud, in principe, be appied to other high cost areas in the future. Outside London and the Fringe, COLS payabe to quaified nurses and some aied heath professionas wi be converted into recruitment and retention premia. 14 Agenda for Change: What wi it mean for you?

17 Recruitment and retention premia Recruitment and retention premia are additiona payments for particuar groups of posts. NHS organisations, working in partnership, wi be abe to use these premia to address recruitment and retention difficuties caused by pressures in the externa abour market. Where there are widespread recruitment and retention pressures affecting a particuar group of staff, premia may be decided on a nationa basis on the recommendation of the Nursing and Other Heath Professions Review Body or the new Pay Negotiating Counci for non-review Body staff. The tota vaue of a recruitment and retention premium wi not normay exceed 30 per cent of basic saary. There wi be two types of recruitment and retention premia: Long-term recruitment and retention premia wi be pensionabe wi be taken into account when cacuating the eve of unsocia hours payments, on-ca payments, overtime and high cost area payments. Short-term recruitment and retention premia wi not be pensionabe wi usuay be time-imited. Agenda for Change: What wi it mean for you? 15

18 The NHS Knowedge and Skis Framework The NHS Knowedge and Skis Framework is a too which provides a means of recognising the skis and knowedge that a person needs to appy to be effective in a particuar NHS post. The framework wi be appicabe across the range of posts in the NHS ensuring better inks between education and deveopment and career and pay progression. The aim is that a staff wi: have cear and consistent deveopment objectives be heped to deveop in such a way that they can appy the knowedge and skis appropriate to their job be heped to identify and deveop knowedge and skis that wi support their career progression and encourage ifeong earning. Each year, you wi have a deveopment review meeting with your manager where you wi agree a persona deveopment pan. This pan wi identify your deveopment needs and describe how your earning wi be supported. Everyone wi be expected to deveop their skis and knowedge. Gateways There are two identified points in each pay band known as gateways. Persona deveopment pans wi be used to hep staff ensure that by the time they reach these gateways, they are appying the appropriate knowedge and skis for the job. 16 Agenda for Change: What wi it mean for you?

19 Pay progression at these gateways wi be inked to the demonstration of knowedge and skis set out in the KSF outine for the post. The first gateway in each pay band wi be after one year in post. The second gateway wi vary between pay bands but wi fa between the top three points of the pay band. Agenda for Change: What wi it mean for you? 17

20 Moving onto the new system There are specia phased arrangements for staff transferring from the od pay system to the new system. This is caed assimiation. Basic pay How individuas assimiate into the new system wi depend on their basic pay immediatey before assimiation (incuding any eads and aowances that are to be consoidated into basic pay), compared with the minimum and maximum of their new pay band: Where basic pay before assimiation is between the new minimum and maximum of the new pay band, staff wi assimiate to the next equa or higher pay point in the new pay band. Where basic pay before assimiation is beow the new minimum, staff in pay band 1 wi move straight onto the minimum. Staff in other pay bands wi assimiate either at the new minimum or, if they are significanty beow the minimum, onto transitiona points. Where staff are above the maximum of the new pay band, their pay wi be protected. This wi incude one year s protection with a pay upift foowed by five years protection on a mark time basis. Annua eave There wi be a five-year protection period for annua eave entitements that exceed the new harmonised entitements. 18 Agenda for Change: What wi it mean for you?

21 Hours There wi be phased protection arrangements, as shown in Tabe 5, for fu-time staff whose current standard working hours are beow excuding mea breaks, and for part-time staff on a simiar equivaent pro-rata basis. Tabe 5. Current fu-time standard hours Protection arrangements Years from 1 December hours Three years on 37 hours hours Three years on hours One year on 37 hours 36 hours Three years on 36 hours Two years on 37 hours 35 hours Four years on 35 hours Two years on 36 hours One year on 37 hours 33 hours Four years on 33 hours Two years on 35 hours One year on 37 hours There wi aso be phased arrangements for staff, as shown in Tabe 6, where current standard working hours are above , excuding mea breaks, and for part-time staff on a simiar equivaent pro-rata basis. Tabe 6. Current fu-time standard hours Protection arrangements Up to from 1 December 2004 More than 39, up to from 1 December from 1 December 2005 More than from the 1 December from 1 December from 1 December 2006 Agenda for Change: What wi it mean for you? 19

22 Nationa decisions on pay two new bodies The Whitey Councis wi be repaced by two new bodies which wi make nationa decisions on pay and terms and conditions of service. The NHS Staff Counci wi oversee the operation of the new pay system and have responsibiity for NHS-wide terms and conditions of service. This repaces the reevant functions of the Genera Whitey Counci and the separate functiona Whitey Councis. The Pay Negotiating Counci wi negotiate pay for staff on the third pay spine. In addition: The remit of the Nursing and Other Heath Professions Review Body has been extended to incude a wider number of quaified heath professionas and their support staff. There wi be new arrangements to hep ensure that the recommendations of the two NHS Review Bodies and the decisions of the Pay Negotiating Counci are consistent with equa pay requirements. 20 Agenda for Change: What wi it mean for you?

23 Where to get more information i) Your oca Agenda for Change ead, HR team or union representative ocay. ii) More information on the new pay system can be found on the Department of Heath s Agenda for Change web pages at: Seect the ink to Poicy and guidance, and then foow the inks to: Human resources and training/modernising pay/agenda for Change. This incudes: A summary of the review of experience in the EI sites. Fu detais of the proposed agreement reached through nationa negotiations. The NHS Job Evauation Handbook and job profies. The NHS Knowedge and Skis Framework, incuding guidance notes. The NHS Terms and Conditions of Service Handbook. iii) The Modernisation Agency s website aso has usefu guidance and resources reating to the impementation of Agenda for Change: See: Agenda for Change: What wi it mean for you? 21

24 Crown copyright p 1250k Oct 04 (BEL) If you require further copies of this tite quote 40369/Agenda for Change: What wi it mean for you? and contact: DH Pubications Orderine PO Box 777 London SE1 6XH Te: Fax: E-mai: Textphone (for minicom users) for the hard of hearing 8am to 6pm Monday to Friday /Agenda for Change: What wi it mean for you? can aso be made avaiabe on request in Braie, on audio-cassette tape, on disk and in arge print.