Health and Social Services
Ministerial Decision Report
Contingency Funding for THE 1% CONSOLIDATED AND 1% NON CONSOLIDATED PAY AWARD FOR 2013
- Purpose of Report
To enable the Minister for Health and Social Services to approve a 2013 request for contingency funding from the Central Contingency (Pay Provision) to the Health and Social Services Department’s head of expenditure for costs associated with the 1% Consolidated and 1% Non Consolidated Pay Awards for 2013.
- Background
On 4th December 2012, the Chief Minister announced in the States that the employer would be implementing the final pay offer made initially on 12th July 2012.
The final offer provides for;-
- 2012, 1% non consolidated pay award paid as a one off lump sum, with effect 1st January 2012;
- 2013, 1% consolidated pay award plus 1% non consolidated pay award paid as a one off lump sum, with effect 1st January 2013;
- 2014, 4% consolidated pay award with effect 1st January 2014 in return for a modernisation agreement;
- A guarantee of no compulsory redundancies until the end of 2014.
In 2013, the Council of Ministers has made provision in the Medium Term Financial Plan (MTFP) for a Central Contingency (Pay Provision) for the 1% Consolidated and 1% Non Consolidated Pay Award for 2013. The implementation of the pay offer requires a transfer of funding to those departments affected by the pay offer.
The 1% Non Consolidated Pay Award for Health and Social Services is £897,000 and represents a one-off payment in 2013 and is only calculated on basic pay. The 1% Consolidated Pay Award of £1,199,000 is recurring and is calculated on pay plus social security and pension contributions. The 2014 4% Consolidated Pay Award will require further Ministerial Decisions to transfer budget to the Health and Social Services Department. Provision has been made in the MTFP as part of the Central Contingency (Pay Provision) in order that this proposed 4% Consolidated Pay Award from January 2014 can be funded. Once the 2014 pay award has been confirmed, the necessary Ministerial Decisions to transfer the budget will be drafted.
Certain groups are not provided for in these pay awards. Doctors and Consultants are tied to settlements in line with UK arrangements. Additional pay awards for nurses which may be made over and above the levels outlined above are not provided for.
The required transfer from Central Contingency (Pay Provision) to the Heath and Social Services Department’s head of expenditure is the cost of the 1% Consolidated (£1,199,000) and 1% Non Consolidated Pay Award (£897,000) for 2013. The total budget to be received for the 2013 pay awards is £2,096,000.
3. Recommendation
The Minister for Health and Social Services is recommended to approve a budget transfer for contingency funding of £2,096,000 from the Central Contingency (Pay Provision), comprising a non-recurrent budget transfer for costs associated with the 2013 1% Non Consolidated Pay Award (£897,000) and a recurrent budget transfer for costs associated with the 2013 1% Consolidated Pay Award (£1,199,000).
4. Reason for Decision
Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorized to approve the transfer from contingency expenditure to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.
5. Resource Implications
The Health and Social Services Department’s revenue head of expenditure will increase by £2,096,000 for 2013. This decision does not change the total amount of expenditure approved by the States for 2013.
Report author : Assistant Director of Finance - Planning | Document date :22 January 2013 |
Quality Assurance / Review : Director of Finance & Information | File name and path: |
MD sponsor :Director of Finance & Information |