Document 12926152

Agenda Item No_____15_______
Pay Policy Statement
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.
The attached statement sets out current remuneration
arrangements and is not a change to existing
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
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.
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Government (DCLG) published draft guidance on pay policy statements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.
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.
The Statement
The statement must set out:
With regard to the process for approving the statement, it must:•
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
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)
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.
Anticipated Amendments to the Statement
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
The statement meets the statutory requirements of the Localism Act and it is
therefore recommended that the statement be approved.
Financial Implications and Risks
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
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.
Equality and Diversity
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.
Section 17 Crime and Disorder considerations
Not applicable.