Agenda Item No_____15_______ Pay Policy Statement Summary: The report is required to enable the Council to satisfy the requirements of section 38 of the Localism Act 2011 which requires that authorities must prepare a pay policy statement (“the statement”) for the financial year 2012/13 and for each subsequent financial year. Conclusions: The attached statement sets out current remuneration arrangements and is not a change to existing policy/practices. Recommendations: To approve the pay policy statement for 2012/13 as required by section 38 the Localism Act 2011. Cabinet Member(s) Ward(s) affected Contact Officer, telephone number and email: Julie Cooke, 01263 516040 Julie.email@example.com 1. Introduction 1.1 Section 38 (1) of the Localism Act 2011 (“the Act”) requires English and Welsh local authorities to produce a pay policy statement (the ‘statement’) for 2012/13 and for each financial year after that. 1.2 On 17 November 2011, the Department of Communities and Local Government (DCLG) published draft guidance on pay policy statements setting out the key policy principles that underpin the pay accountability provisions in the Act. Authorities must have regard to the guidance in performing their functions in preparing and approving pay statements. The guidance may be subject to change as it was issued in draft with a deadline for comments of 16 December 2011. At the point of writing this report, final guidance had not been published, therefore, changes to the guidance will be addressed when the policy is next updated/reviewed. 1.3 Each local authority is an individual employer in its own right and has the autonomy to make decisions on pay that are appropriate to local circumstances and which deliver value for money for local taxpayers. As reported to Full Council in October 2011, this Council has been undertaking a review of the pay and grading model for employees to ensure it is fit for purpose. The requirements of the Act provide further transparency to the remuneration practices of the Council. 2. The Statement 2.1 The statement must set out: • • • • 2.2 With regard to the process for approving the statement, it must:• • • • 2.3 A local authority’s policy on the level and elements of remuneration for each chief officer A local authority’s policy on the remuneration of its lowest-paid employees (together with its definition of “lowest-paid employees” and its reasons for adopting that definition) A local authority’s policy on the relationship between the remuneration of its chief officers and other officers A local authority’s policy on other specific aspects of chief officers’ remuneration: remuneration on recruitment, increases and additions to remuneration, use of performance related pay and bonuses, termination payments, and transparency. Be approved formally by Full Council and cannot be delegated to any sub committee. This includes any amendments in each financial year Be approved by the end of March each year Be published on the authority’s website and in any other manner that the Council thinks appropriate as soon as it is reasonably practicable after it is approved or amended Be complied with when the authority sets the terms and conditions for a Chief Officer For the purpose of the statement the term ‘Chief Officer’ in a local authority context is defined as set out in the Local Government and Housing Act 1989 as: • • • • The Head of Paid Service (Chief Executive) The Monitoring Officer A statutory Chief Officer and non statutory Chief Officer (section 2 of that Act) A deputy Chief Officer (section 2 of that Act) 2.4 This definition of Chief Officer is wider than that contained within the Constitution where the term ‘chief officer’ indicates the senior posts which sat on the Corporate Management Team i.e. the Chief Executive and Directors. 3. Anticipated Amendments to the Statement 3.1 The following activities may require the statement to be reviewed and where appropriate amended within the next 12 months: • • • Implementation of the new pay and grading model Implementation of a new management structure below Corporate Leadership Team Any changes to the guidance issued by DCLG 4. Conclusions 4.1 The statement meets the statutory requirements of the Localism Act and it is therefore recommended that the statement be approved. 5. Financial Implications and Risks 5.1 There are no increased risks or resource implications as a result of setting and publishing this statement as it is setting out what is currently in place. It is a positive step towards openness and transparency of public spend on senior management remuneration. This builds on the publication of senior officer salary information which is already available on the internet at http://www.northnorfolk.org/council/8105.asp 5.2 All the information contained within the statement would be made available through a Freedom of Information request so publication could reduce the requests for information in this area. 6. Equality and Diversity 6.1 The Equality Act 2010 places requirements upon all public sector bodies to ensure that its policies and procedures are promoting equality, this document supports that requirement. 7. Section 17 Crime and Disorder considerations Not applicable.