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Pay Awards 2020: Reserve Funding for Back Pay Element: Allocation

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A decision made on 29 November 2021

Decision Reference:  MD-TR-2021-0130

Decision Summary Title:

Allocation of Reserve Funding for back pay element of 2020 pay awards

Date of Decision Summary:

24th November 2021

Decision Summary Author:

Manager – Financial Planning

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 back pay element of 2020 pay awards

Date of Written Report:

24th November 2021

Written Report Author:

Manager – Financial Planning

Written Report:

Public or Exempt?

Public

Subject:

The allocation of up to £794,300 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 effect of the 2020 pay award (2020 back pay) in respect of the Senior Leaders, Doctors and Consultants pay groups (detailed in the attached report).

Decision(s):

The Minister approved an allocation of up to £794,300 in 2021 from the “Reserve for Centrally Held Items” to the Heads of Expenditure detailed in the written report to fund the effect of 2020 pay award (2020 back pay) in respect of the Senior Leaders, Doctors and Consultants 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. 

 

The light business case and addendum 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 £794,300 in 2021, and various heads of expenditure to increase, as detailed in the table in the attached report.

 

This decision does not change the total amount of expenditure approved by the States in the Government Plan 2021-2024. This decision relates only to the back pay element of the awards. The recurring element has been allocated previously and is reflected in the proposed Government Plan 2022-25.

Action required: The Head of Financial Governance to advise the Head of Financial Planning and the Head of Finance Business Partnering for all departments that this decision is approved.

Signature:

Position:

Deputy Susie Pinel

Minister for Treasury and Resources      

Date Signed:

Date of Decision:

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