Doctors Pay Award 2013: Contingency Funding Transfer

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A decision made 5 July 2013:

Decision Reference: MD-HSS-2013-0026
Decision Summary Title:	Contingency Funding for 2013 Doctors’ Pay Award		Date of Decision Summary:	26 June 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 2013 Doctors’ Pay Award		Date of Written Report:	26 June 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 Doctors’ Pay Award for 2013.
Decision(s): The Minister for Health and Social Services approved a recurrent budget transfer for funding of £189,000 from the Central Contingency to fund the 2013 pay award. The award is made with effect from April 2013 and therefore the transfer for 2013 is £140,000.
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 Doctors’ pay awards are linked to the NHS pay scales 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 £189,000 recurrently (£140,000 for 2013). 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: Deputy Anne Pryke, Minister for Health and Social Services
Date Signed: July 2013		Date of Decision:

Doctors Pay Award 2013: Contingency Funding Transfer

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Health and Social Services

Ministerial Decision Report

Contingency Funding for 2013 doctors’ PAY AWARD

Purpose of Report

To enable the Minister for Health and Social Services to approve a 2013 request for contingency funding from the Central Contingency to the Health and Social Services Department’s head of expenditure for costs associated with the Doctors’ Pay Award for 2013.

Background

On 14th March 2013, the NHS published the NHS Pay Circulars which recommended a pay award for Doctors of 1% (basic pay).

The final offer provides for;-

1% on basic pay for all grades
No pay award in respect of Clinical Excellence Awards for Consultants – resulting in an average increase of 0.92% for Consultants.

This is in line with agreements made with the Local Negotiating Committee.

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

The Doctors’ Pay Award for Health and Social Services is £189,000 for a full year. As the pay award is made with effect from 01 April 2013, the cost for 2013 is £140,000. The pay award is only calculated on basic pay.

The required transfer from Central Contingency to the Heath and Social Services Department’s head of expenditure is the cost of the pay award for 2013. The total recurrent budget to be received for the 2013 pay awards is £189,000 (£140,000 in 2013).

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 Doctors’ pay awards are linked to the NHS pay scales 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 £189,000 recurrently (£140,000 for 2013). 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 26 June 2013
Quality Assurance / Review : Director of Finance & Information	File name and path:
MD sponsor :Director of Finance & Information	File name and path: