Social Security Department
Ministerial Decision Report
Contingency Funding to DEPARTMENTS for THE 1% CONSOLIDATED AND 1% NON CONSOLIDATED PAY AWARD FOR 2013
- Purpose of Report
To enable the Social Security Minister to approve a 2013 request for contingency funding from the Central Contingency (Pay Provision) to the Social Security Department as per the schedule at Appendix 1 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 cost of the 2013 1% Non Consolidated pay award for the Social Security Department is £68,902 but the amount requiring transfer from Treasury is £38,658 as the Social Security Fund and Health Insurance Fund element of the pay award amounts to £30,244.
The cost of the 2013 1% Consolidated pay award for the Social Security Department is £99,515 but the amount requiring transfer from Treasury is £62,037 as the Social Security Fund and Health Insurance Fund element of the pay award amounts to £37,478.
This gives a total of £100,695 from the Treasury in total for 2013.
3. Recommendation
The Social Security Minister is recommended to approve a 2013 request for £100,695 from the Central Contingency (Pay Provision) to the Social Security Department as set out in Appendix 1 for costs associated with the 1% Consolidated and 1% Non Consolidated Pay Award for 2013.
4. Reason for Decision
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 to heads of expenditure of amounts not exceeding, in total, the amount available for contingency expenditure in a financial year.
5. Resource Implications
The Social Security Department’s revenue head of expenditure to increase by £100,695 as set out in Appendix 1 and the Treasury and Resources Central Contingency (Pay Provision) to decrease by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2013.
APPENDIX 1: SCHEDULE OF COSTS TO DEPARTMENTS OF THE 1% NON CONSOLIDATED PAY AWARD AND 1% CONSOLIDATED PAY AWARD FOR 2013 TO BE FUNDED BY A TRANSFER FROM THE CENTRAL CONTINGENCY (PAY PROVISION) FOR 2013
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