Budget transfer from Central Contingencies to Children, Young People, Education and Skills, and Health and Community Services: Pay Awards 2018/2019

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A decision made 30 August 2019:

Decision Reference: MD-TR-2019-0075
Decision Summary Title:	Contingency Funding for 2018 and 2019 Pay Award for Teaching Assistants and Nurses & Midwives		Date of Decision Summary:	29th August 2019
Decision Summary Author:	Specialist – Business Cases		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Contingency Funding for 2018 and 2019 Pay Award for Teaching Assistants and Nurses & Midwives		Date of Written Report:	29th August 2019
Written Report Author:	Specialist – Business Cases		Written Report : Public or Exempt?	Public
Subject: The allocation of £4,081,670 in 2019 from Central Contingencies to Children, Young People, Education and Skills (CYPES) and Health and Community Services (HCS) departments, to cover the recurring cost associated with the additional 2018 and 2019 Pay Award in respect of Teaching Assistants, and to cover the 2018 recurring costs and 2019 Pay Award for Nurses & Midwives, both in 2019.
Decision(s): The Minister approved a non-recurring allocation of £4,081,670 from the Central Contingencies to the CYPES and HCS departments as per the attached report to fund the additional 2018 and 2019 Pay Awards for Teaching Assistants and Nurses & Midwives pay groups in 2019.
Reason(s) for Decision: Article 58 of the Public Finances (Jersey) Law 2019 states that the provisions of the previous Law, as they have effect immediately before the 2019 Law came into force, continue to apply to money received, expended or otherwise handled by or on behalf of the States during the financial year in which this Law came into force. Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year. The current Contingency Allocation Policy (published as R.38/2019) states: “This process replaces all other processes and applies to all elements of Contingency allocated in the MTFP excluding Pay, Pensions and Voluntary Redundancy.”
Resource Implications: Central Contingencies to decrease by £4,081,670 in 2019, the CYPES Department revenue head of expenditure to increase by £191,475 and the HCS Department revenue head of expenditure to increase by £3,890,195. This decision does not change the total amount of expenditure approved by the States in the Medium Term Financial Plan 2016 to 2019.
Action required: The Head of Financial Governance to advise the Head of Finance Business Partnering of the receiving departments that this decision is approved.
Signature:		Position: Deputy Susie Pinel Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfer from Central Contingencies to Children, Young People, Education and Skills, and Health and Community Services: Pay Awards 2018/2019

Treasury and Exchequer

Ministerial Decision Report

CONTINGENCY FUNDING FOR 2018 and 2019 PAY AWARD for teaCHING ASSISTANTS AND nurses and midwives

Purpose of Report

To enable the Minister to approve the allocation of £4,081,670 in 2019 from Central Contingencies to the Children, Young People, Education and Skills (CYPES) and Health and Community Services (HCS) departments to cover the recurring costs associated with the additional 2018 Pay Award and the 2019 Pay Award in respect of Teaching Assistants and Nurses and Midwives in 2019.

Background

Teaching Assistants

Funding provisions were made in the Medium Term Financial Plan Addition in Central Contingencies for anticipated pay awards across all pay groups.

On 6th December 2018, the States Employment Board announced that it was increasing the consolidated pay award offered to teaching assistants from 1% in 2018 and 1% in 2019 to 2% in 2018 and 2% in 2019 to bring it in line with the offer made to teachers. MD-TR-2018-0147 allocated the original Civil Service and Associated Groups consolidated pay award of 1% in 2018 and 2019. MD-TR-2018-0150 allocated the provisional cost of the 2018 extra 1% pay award to enable the year end accrual to be processed for the 2018 Accounts.

This Decision allocates the increase of 1% for 2018 and 2019 to meet the cost of this additional recurring award and an adjustment to the 2018 accrual amount.

Nurses and Midwives

In April 2019 the Nurses and Midwives accepted the pay offer of 3.1% for 2018 and 3% for 2019. MD-TR-2018-0141 allocated the provisional cost of the 2018 pay award at 3.1% consolidated to enable the year end accrual to be processed for the 2018 Accounts.

This Decision allocates the recurring effect of that 2018 award and the 2019 pay award, both in 2019.

Recommendation

The Minister is recommended to approve allocations from Central Contingencies to the following departments in 2019 to cover the recurring costs associated with the 2018/19 Pay Award in respect of Teaching Assistants and the Nurses and Midwives pay groups.

Reasons for Decision

Article 58 of the Public Finances (Jersey) Law 2019 states that the provisions of the previous Law, as they have effect immediately before the 2019 Law came into force, continue to apply to money received, expended or otherwise handled by or on behalf of the States during the financial year in which this Law came into force.

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorised to approve the transfer from contingency expenditure or the insurance fund of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.

The current Contingency Allocation Policy (published as R.38/2019) states: “This process replaces all other processes and applies to all elements of Contingency allocated in the MTFP excluding Pay, Pensions and Voluntary Redundancy.”

5. Resource Implications

Central Contingencies to decrease by £4,081,670 in 2019, the CYPES Department revenue head of expenditure to increase by £191,475 and the HCS revenue head of expenditure to increase by £3,890,195.

Report author : Specialist – Business Cases	Document date : 29th August 2019
Quality Assurance / Review: Director, Investment Appraisal & T&E Business Management	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2019-0075 - Contingency Funding for 2018 and 2019 Pay Award for Teaching Assistants, Nurses and Midwives
MD sponsor : Treasurer of the States