Pay Awards 2020 and 2021: Allocation of Reserve Funding

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A decision made on 25 June 2021

Decision Reference: MD-TR-2021-0080
Decision Summary Title:	Allocation of Reserve Funding for Various Groups for 2020 and 2021 Pay Award		Date of Decision Summary:	23rd June 2021
Decision Summary Author:	Strategic Finance Advisor		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Allocation of Reserve Funding for Various Groups for 2020 and 2021 Pay Award		Date of Written Report:	23rd June 2021
Written Report Author:	Strategic Finance Advisor		Written Report: Public or Exempt?	Public
Subject: The allocation of up to £1,136,800 in 2021 from the “Reserve for Centrally Held Items” to the Heads of Expenditure detailed in the attached report, to cover the costs associated with the 2020 and 2021 Pay Awards in respect of specific pay groups (detailed in the attached report).
Decision(s): The Minister approved an allocation of up to £1,136,800 from the “Reserve for Centrally Held Items” to the Heads of Expenditure detailed in the written report to fund the 2020 and 2021 Pay Awards for specific pay groups (detailed in the attached report).
Reason(s) for Decision: Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a government plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan. The current Policy for Allocations from the Reserve (published as R.60/2021) sets the requirement for all allocations from the Reserve for Centrally Held Items to be reviewed by the Investment Appraisal Team who will provide the Treasurer of the States sufficient information to allow him to reach a decision to recommend the funding. This has been reviewed by the Investment Appraisal Team and the Treasurer now recommends this to the Minister for Treasury and Resources for approval.
Resource Implications: The “Reserve for Centrally Held Items– Pay Award Inflation” to decrease by up to £1,136,800 and various heads of expenditure to increase by a total identical amount, as detailed in the table in the written report. This decision does not change the total amount of expenditure approved by the States in the Government Plan 2021-2024. These pay awards are consolidated and will therefore be included in the Government Plan 2022-2025.
Action required: The Head of Financial Governance to advise the Manager Financial Planning and the Head of Finance Business Partnering of the receiving Heads of Expenditure that this decision is approved.
Signature:		Position: Deputy Susie Pinel Minister for Treasury and Resources
Date Signed:		Date of Decision:

Pay Awards 2020 and 2021: Allocation of Reserve Funding

Treasury and Exchequer

Ministerial Decision Report

Allocation of reserves funding for 2020 and 2021 pay award

Purpose of Report

To enable the Minister to approve the allocation of up to £1,136,800 in 2021 from the “Reserve for Centrally Held Items” to various departments as detailed below, to cover the recurring costs associated with:

- The 2021 Pay Award at 2% in respect of Junior Doctors with effect from 1 April 2021, and

- The 2021 Pay Award at 0.9% in respect of Senior Leaders with Spot Salaries contracts and paid above £100,000 and the 2020 Pay Award at 2.7% backdated to 1 January 2020.

The Nurses and Midwives are still in the negotiation stage and they are not included in this allocation.

Background

Funding provisions were made in the Government Plan 2021-2024 in the “Reserve for Centrally Held Items” for anticipated pay awards across all pay groups. This included the funding of the agreed pay awards for pay groups listed above in 2021.

Pay Awards

Senior leaders

Pay awards for 2020 have been agreed or implemented with effect from 1st January 2020 with general award at 2.7% and pay awards for 2021 have been agreed or implemented with effect from 1st January 2021 with a general award at 0.9%

Junior Doctors

Pay awards for 2021 have been agreed or implemented with effect from 1 April 2021 at 2%.

Other

A small number of agreed pay awards were omitted from the previous allocation from the Reserve for administrative reasons. The opportunity is now taken to allocate these amounts to relevant departments. The value of these awards totals £22,800 and is included in the tables below.

All to be funded from the Reserve for Centrally Held Items.

Recommendation

The Minister is recommended to approve allocations from the “Reserve for Centrally Held Items” to the Heads of Expenditure, as detailed in the table below, in 2021 to cover the recurring costs associated with the 2020 and 2021 Pay Award.

Reasons for Decision

Article 15(3) of the Public Finances (Jersey) Law 2019 states that the approval by the States of a government plan authorises the Minister to direct how an approved appropriation for a reserve head of expenditure in the plan may be spent (including on another head of expenditure) in the first financial year covered by the plan.

The current Policy for Allocations from the Reserve (published as R.60/2021) sets the requirement for all allocations from Reserve for Centrally Held Items to be reviewed by the Investment Appraisal Team who will provide the Treasurer of the States sufficient information to allow him to reach a decision to recommend the funding.

This has been reviewed by the Investment Appraisal Team and the Treasurer now recommends this to the Minister for Treasury and Resources for approval.

5. Resource Implications

The “Reserve for Centrally Held Items– Pay Award Inflation” to decrease by up to £1,136,800 and various heads of expenditure to increase by a total identical amount, as detailed in the table above.

This decision does not change the total amount of expenditure approved by the States in the Government Plan 2021-2024. These pay awards are consolidated and will therefore be included in the Government Plan 2022-2025.

Report author: Strategic Finance Advisor	Document date: 23rd June 2021
Quality Assurance / Review: Group Director, Strategic Finance/ Head of Financial Governance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2021-0080 - Reserve Funding for 2020 and 2021 Pay Award
MD sponsor: Treasurer of the States