People, Capability and Change
1st Floor SE Fry Building
2 Marsham Street, London SW1P 4DF
PCS: David Jones, Chris Hickey
Paulette Romain, Lisa Marie
FDA: Jane Cockram, Mark Furlong
Prospect: Graham Kinshott, Rose Willis
Via email
19 October 2016

Dear colleagues

2016/17 DCLG Pay Offer for AO – Grade 6 staff

  1. Following the annual pay award proposal for AO – Grade 6 sent to you on 26 August 2016, we have met on four occasions to discuss the offer and have provided you with additional data to assist you in your deliberations. This letter sets out the final 2016/17 Pay offer for staff covered by the DCLG (HQ) pay bargaining unit. Awards will apply to staff in post on 1 August 2016.
  1. The offer is made in the context of public sector pay policy and takes account of affordability. The constraint of the 2016/17 Civil Service Pay Guidance means that we are 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 0.22% of paybill, the 0.78% remaining is what is available to those on reformed terms, which translates into 0.94% of current salaries for this group of staff.
  1. The main elements of the offer are:
  • A 0.94% 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 0.94% for AO –Grade 6;
  • Increase in the spot rate for AOs by 0.94%;
  • Increase in the pay scale maxima of the reformed pay system by 0.94% for SEO and Grade 7;
  • Payment of contractual milestones to those staff that chose to remain in legacy pay systems and are due a milestone increase.

Staff on reformed pay terms

  1. All members of staff in the reformed pay system will receive an award of 0.94%. 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.
  1. The pay band minima within the reformed pay system will be increased by 0.94% for AO – Grade 6. The revised pay scales are annexed.
  1. The AO spot rate will be increased by 0.94% and the SEO and Grade 7 maxima will be increased by 0.94%.
  1. There will be no increase to the pay band maxima for EOs, HEOs and Grade 6.

Staff on legacy pay terms

  1. 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.
  1. 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. Staff will be invited to express their interest in transferring over to the reformed pay system by contacting the Pay & Reward team. It has been agreed during our negotiations that we will continue to discuss this with you separately.
  1. No pay band minima, maxima or milestones within the legacy pay system will be revalorised.

AOs with transitional arrangements

  1. 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.
  1. The pay scale minima for this group of staff and for new entrants will therefore increase to £24,796 (London) and £21,289 (National) with effect from 1st August 2016.
  1. The spot rate for AOs will increase by 0.94% to £26,090 (London) and £22,403 (National).

Performance Awards

  1. In addition to the pay offer described above, the Executive Team agreed a bonus pot with which directors can further reward their staff. We propose to link 50% of the non-consolidated bonus pot to end of year performance markings for the year April 2016 to April 2017 only and will continue to use 50% of the bonus pot for in-year rewards and keep our policy on how best to do this under review.

Specialist pay scales

  1. We will undertake a review of specialist pay ahead of the 2017/18 pay award.

Allowances

  1. All allowances will remain unchanged this year but we will undertake a review of them ahead of the 2017/18 pay award.

Impact on part-time workers

  1. 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

  1. 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

  1. Our intention is to pay the awards (contractual milestones aside) in November salaries. All payments will be backdated to the 1st August 2016. However, payment in November salaries is dependent on whether TUS colleagues decide to ballot on this year’s pay offer.
  1. 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 25th October 2016 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 Wednesday 9th November.

Yours faithfully

Henry Watson

Pay and Reward

People, Capability and Change

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