Nurses' Pay Award: Transfer of funds from Central Contingency

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A decision made 12 September 2013:

Decision Reference: MD-HSSD-2013-0034
Decision Summary Title:	Contingency Funding for Nurses’ Pay Award		Date of Decision Summary:	27 August 2013
Decision Summary Author:	Assistant Director of Finance - Planning		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 Nurses’ Pay Award		Date of Written Report:	27 August 2013
Written Report Author:	Assistant Director of Finance - Planning		Written Report : Public or Exempt?	Public
Subject: Transfer of contingency funding from the Central Contingency (Pay Provision) to the Health and Social Services Department for costs associated with the Nurses’ Pay Award.
Decision(s): The Minister for Health and Social Services approved a recurrent budget transfer for funding of £1.24 million in 2013 and £1.6 million in each of 2014 and 2015 from the Central Contingency to fund the 2012 & 2013 pay awards.
Reason(s) 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. The Nurses’ pay awards were agreed in July 2013 and contingency funding is held for these in the States of Jersey Central Contingency. In order to make the payments associated with this award it is necessary to have the budget transferred to the Health and Social Services Department’s head of expenditure.
Resource Implications: The Health and Social Services Department’s revenue head of expenditure will increase by £1.24 million in 2013, £1.6 million in 2014 and £1.6 million in 2015. This decision does not change the total amount of expenditure approved by the States for 2013 - 2015.
Action required: Director of Finance for Health and Social Services to liaise with Treasury and Resources Department to effect the necessary budget transfer.
Signature:		Position: Minister for Health and Social Services
Date Signed:		Date of Decision:

Nurses' Pay Award: Transfer of funds from Central Contingency

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Health and Social Services

Ministerial Decision Report

Contingency Funding for NURSES’ PAY AWARD

Purpose of Report

To enable the Minister for Health and Social Services to approve a 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 Nurses’ Pay Award for 2012 & 2013. Funding for the 2014 element of the pay award will be allocated in 2014.

Background

Following discussions between the States Employment Board and the Nursing Unions, a final offer pay award was put to the ballot, and accepted, in July 2013.

The final offer provides for;-

1% consolidated award for 2012
4% consolidated award for 2013
4% consolidated award for 2014

This offer recognises the long-standing problem with pay parity between nurses, midwives and other health care workers, and is the first step in the redesign of nursing pay, which makes some progress towards closing the pay gap among health staff and addressing difficulties with recruiting and retaining nursing staff.

The Council of Ministers has made provision in the Medium Term Financial Plan (MTFP) for a Central Contingency for the Pay Award for 2012 & 2013. The implementation of the pay offer requires a transfer of funding to those departments affected by the pay offer.

The Nurses’ Pay Award for Health and Social Services requires a transfer from Central Contingency to the Health and Social Services Department’s head of expenditure of £1.24 million in 2013 and £1.6 million in each of 2014 and 2015.

3. Recommendation

The Minister for Health and Social Services is recommended to approve a budget transfer as described above for contingency funding from the Central Contingency.

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.

The Nurses’ pay awards were agreed in July 2013 and contingency funding is held for these in the States of Jersey Central Contingency. In order to make the payments associated with this award it is necessary to have the budget transferred to the Health and Social Services Department’s head of expenditure.

5. Resource Implications

The Health and Social Services Department’s revenue head of expenditure will increase by £1.24 million in 2013, £1.6 million in 2014 and £1.6 million in 2015. This decision does not change the total amount of expenditure approved by the States for 2013 - 2015.

Report author : Assistant Director of Finance - Planning	Document date 27 August 2013
Quality Assurance / Review : Director of Finance & Information	File name and path:
MD sponsor :Director of Finance & Information	File name and path: