Teachers' Pay Award for 2015/2016: Transfer of funding from Central Contingency (Pay Provision) to the Education Department

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A decision made 6 October 2016:

Decision Reference: MD-ESC-2016-0024
Decision Summary Title:	Central Contingency Funding for Teachers’ 2015/2016 Pay Award		Date of Decision Summary:	30th September 2016
Decision Summary Author:	Director – Resources and School Support		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Central Contingency Funding for Teachers’ 2015/2016 Pay Award		Date of Written Report:	30th September 2016
Written Report Author:	Director – Resources and School Support		Written Report : Public or Exempt?	Public
Subject: Transfer of contingency funding from the Central Contingency (Pay Provision) to the Education Department for costs associated with the Teachers’ Pay Award for 2015 / 2016.
Decision(s): The Minister for Treasury and Resources approved the following transfers from the Central Contingency (Pay Provision) to the Education Department: A non-recurring budget transfer of £616,787 in 2016 to fund the 2015 / 2016 Teachers, Deputy Head and Head Teachers’ pay award with effect from 1st January 2016. Approval is sought to transfer funding for the 2016 financial impact for pay groups approved to date only. Further Decisions will be submitted for the other pay groups as they are approved.
Reason(s) 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. The recurring impact of a 1% pay award across all pay groups has been included in departments’ base budgets from 2017 as part of the MTFP Addition (MTFP Addition Annex, ‘Reconciliation of Net Revenue Expenditure’ sections for each department).
Resource Implications: Central Contingency (Pay Provision) to decrease by £616,787 in 2016 and the Education Department revenue head of expenditure to increase by an identical amount.
Action required: Head of Decision Support to inform the Financial Performance Reporting Manager and the Director of Finance, Education Department that this decision has been approved.
Signature:		Position: Deputy Rod Bryans, Minister for the Education Department
Date Signed:		Date of Decision:

Teachers' Pay Award for 2015/2016: Transfer of contingency funding from Central Contingency (Pay Provision) to the Education Department

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Education Department

Ministerial Decision Report

Central Contingency Funding for 2015/2016 Teachers’ Pay Award

Purpose of Report

To request approval for a non-recurring budget transfer of £616,787 in 2016 from the Central Contingency (Pay Provision) to the Education Department to fund the 2015 / 2016 Teachers, Deputy Head and Head Teachers’ pay award with effect from 1st January 2016.

Background

Non-recurrent provisions were made in the Central Contingency (Pay Provision) including for anticipated pay awards across all pay groups in 2016.

A firm offer of 1% or £616,787 for 2015/2016 with effect from 1st January 2016 was made and accepted by Teachers, Deputy Heads and Head Teachers. This sum forms part of the aforementioned pay provisions made in the Central Contingency and a one-off budget transfer is required to meet the Education Department’s 2016 costs.

Recommendation

The Minister is recommended to approve the following transfers from the Central Contingency (Pay Provision) to the Department of Education (DfE) for costs associated with Pay Awards to Teachers:

a non-recurring budget transfer of £616,787 to fund the Teachers’ pay award.

Approval is sought to transfer funding for the 2016 financial impact for pay groups approved to date only. Further Decisions will be submitted for the other pay groups as they are approved.

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.

The recurring impact of a 1% pay award across all pay groups has been included in departments’ base budgets from 2017 as part of the MTFP Addition (MTFP Addition Annex, ‘Reconciliation of Net Revenue Expenditure’ section for each department).

Resource Implications

Central Contingency (Pay Provision) to decrease by £616,787 in 2016 and the Education Department revenue head of expenditure to increase by an identical amount.