1st Floor SE Fry Building
2 Marsham Street, London SW1P 4DF
PCS: David Jones, Chris Hickey
Paulette Romain, Lisa Marie
FDA: Jane Cockram
Prospect: Graham Kinshott, Rose Willis
Via email
10 October 2017
Dear colleagues
2017/18 DCLG Pay Offer for AO – Grade 6 staff
1. We have met on four occasions to discuss the annual pay award proposal for AO -Grade 6 and provided you with an extensive data pack, ahead of the meetings, to assist you in your deliberations. This letter sets out the final 2017/18 Pay offer for staff covered by the DCLG (HQ) pay bargaining unit. Awards will apply to staff in post on 1 August 2017.
2. The offer is made in the context of public sector pay policy and takes account of affordability. The constraint of the 2017/18 Civil Service Pay Guidance means that we remain limited to a 1% increase in total salary costs. The main principle of the offer is that we meet our contractual obligations to individuals remaining on legacy pay terms whilst giving the highest possible pay award to those on reformed pay terms. As the cost of contractual obligations to legacy staff amounts to 0.10% of paybill, the 0.90% remaining is what is available to those on reformed terms, which translates into 0.97% of current salaries for this group of staff.
3. The main elements of the offer are:
· A 0.97% pay award to all staff in the reformed pay system (consolidated up to the pay scale maxima and non-consolidated above that);
· Increase in the pay scale minima of the reformed pay system by 0.97% for EO - Grade 6;
· Increase in the pay scale maxima of the reformed pay system by 0.97% for EO - Grade 6;
· Increase in the spot rate for AOs by 0.97%;
· Payment of contractual milestones to those staff that chose to remain in legacy pay systems and are due a milestone increase.
· A 5% increase to on-call rates and standby allowances.
Staff on reformed pay terms
4. All members of staff in the reformed pay system will receive an award of 0.97%. This will be fully consolidated up to the relevant pay scale maxima. Payment of the award above the pay scale maxima will be on a non-consolidated basis.
5. The pay band minima within the reformed pay system will be increased by 0.97% for EO - Grade 6. The revised pay scales are annexed.
6. The pay band maxima within the reformed pay system will be increased by 0.97% for EO - Grade 6. The revised pay scales are annexed.
7. The AO spot rate will be increased by 0.97%.
Staff on legacy pay terms
8. No payments other than contractual milestones will be paid to members of staff who remain on legacy pay terms;
· Staff remaining on DCLG legacy pay terms will receive a contractual milestone payment where they are due, and on the date they are due; on 1 August, 1 December or 1 April. August milestones have been paid.
· Staff remaining on legacy RDA and GON pay terms, where eligible, were paid a milestone payment on 1 July.
9. There will be an opportunity for staff who remained on legacy terms to transfer across to the reformed pay system and receive a pay award provided they have not received a milestone payment in the current pay remit year. Staff will be invited to express their interest in transferring over to the reformed pay system by contacting the Pay & Reward team.
10. No pay band minima, maxima or milestones within the legacy pay system will be revalorised.
AOs with transitional arrangements
11. Following Pay Reform in 2014, a small number of AOs who did not have contractual progression rights were automatically transferred onto the reformed pay system. These individuals benefit from transitional arrangements which shorten their pay scale over a 5 year period by pulling up the minima in line with legacy milestones until there is only a single spot rate for the grade.
12. The pay scale minima for new entrants will therefore increase to £25,322 (London) and £21,741 (National) with effect from 1st August 2017, in accordance with the relevant legacy milestones.
13. The spot rate for AOs will increase by 0.97% to £26,344 (London) and £22,621 (National).
Specialist pay scales
14. As discussed we will continue to review specialist pay grades in order to remove any pay bands that are currently unoccupied and unlikely to be reinstated in the future.
Allowances
15. The on-call and standby allowances will be increased by 5%. All other allowances will remain unchanged this year but we will review them again ahead of the 2018/19 pay award.
Impact on part-time workers
16. All pay increases arising from this offer will be applied to the full annualised salaries of part time staff, but will be paid on a pro-rata basis according to the number of hours worked.
Equality Analysis
17. DCLG is fully committed to equality of opportunity for all its employees. An equality analysis has been undertaken on the impact of the offer on the pay structures. The offer is made to all staff irrespective of their ethnicity, working pattern, gender or disability status.
Timing of awards
18. Our intention is to pay the awards (contractual milestones aside) in November salaries. All payments will be backdated to the 1st August 2017. Payment in November salaries will give TUs the appropriate window to either consult or indeed ballot their members, should this be the route they choose to follow.
19. In order for us to have enough time to make the necessary arrangements for payment, I would appreciate it if I could have an indication by 16 October 2017 of whether you intend to ballot or not. In order to provide sufficient time for increases to be reflected in November salaries any ballot process would need to be completed by 8 November 2017.
Yours faithfully
Henry Watson
Pay and Reward
People, Capability and Change
3