Budget transfers from Central Contingency funding for 2015 pay provision for doctors and nurses

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A decision made 1 February 2016:

Decision Reference: MD-TR-2016-0012
Decision Summary Title:	Central Contingency Funding for 2015 Nurses’ and Doctors’ Pay Award		Date of Decision Summary:	27th January 2016
Decision Summary Author:	Head of Financial Planning		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title:	Central Contingency Funding for 2015 Nurses’ and Doctors’ Pay Award		Date of Written Report:	27th January 2016
Written Report Author:	Assistant Accountant, Financial Planning		Written Report : Public or Exempt?	Public
Subject: Transfer of contingency funding from the Central Contingency (Pay Provision) to the Health and Social Services Department (H&SS) for costs associated with the Nurses’ and Doctors’ Pay Award for 2015.
Decision(s): The Minister approved the following transfers from the Central Contingency (Pay Provision) to Health and Social Services Department (H&SS): A one-off budget transfer of £265,000 in 2015 to fund the nurses’ pay award: noting that a recurring allocation of £265,000 is already provided in the MTFP from 2016; A one-off budget transfer of £120,000 in 2015 to fund the 2015 Consultant and Middle Grade Doctors’ pay award for the period 1st April 2015 to 31 December 2015.
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. On 27th January 2016 the Council of Ministers considered this additional funding and having noted that the Central Contingency has a sufficient unallocated balance to provide the necessary funding of £385,000 in 2015, the Council approved the proposed allocation. The COM minute is attached together with the Health and Social Services Department Ministerial decision (MD-HSS-2016-0007).
Resource Implications: Central Contingency (Pay Provision) to decrease by £385,000 in 2015 and the H&SS revenue head of expenditure to increase by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2013 - 2015.
Action required: Head of Decision Support to inform the Financial Performance Reporting Manager and the Director of Finance, H&SS that this decision has been approved.
Signature:		Position: Senator A J H Maclean, Minister for Treasury and Resources
Date Signed:		Date of Decision:

Budget transfers from Central Contingency funding for 2015 pay provision for doctors and nurses

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Treasury & Resourses

Ministerial Decision Report

Central Contingency Funding for 2015 Nurses’ and Doctors’ Pay Award

Purpose of Report

To request the Minister to approve the following transfers from the Central Contingency (Pay Provision) to the Health and Social Services Department (H&SS) for costs associated with Pay Awards to Nurses and Consultant and Middle Grade Doctors:

a one-off budget transfer of £265,000 in 2015 to fund the nurses’ pay award; noting that a recurring allocation of £265,000 is already approved in H&SS’s cash limit in the MTFP from 2016;
a one-off budget transfer of £120,000 in 2015 to fund the 2015 Consultant and Middle Grade Doctors’ Pay Award for the period 1st April 2015 to 31st December 2015.

Background

A non-recurrent provision of £400,000 was made in the Central Contingency (Pay Provision) for anticipated pay awards for Nurses’ and Doctors’ in 2015.

A firm offer of 0.4% or £265,000 has been made to nurses’ for 2015. This sum has been included in H&SS’s cash limit from 2016 but a one-off budget transfer is required to meet the 2015 costs.

Jersey Doctors’ pay awards are linked to the NHS pay scales. The doctors’ pay award for 2013 was agreed by the Council of Ministers on 28th June 2013 as provision had not specifically been made in the MTFP for that award.

These sums exclude any agreement which has yet to be reached with the Junior Doctors. Junior Doctors work on rotation with NHS hospitals. At the time of writing, Junior Doctors’ pay negotiations are continuing with the NHS.

On 27th January 2016 the Council of Ministers considered this additional funding and having noted that the Central Contingency has a sufficient unallocated balance to provide the necessary funding of £385,000 in 2015, the Council approved the proposed allocation. The COM minute is attached together with the Health and Social Services Department Ministerial decision (MD-HSS-2016-0007).

This report seeks approval to transfer funding for the 2015 financial impact of known 2015 pay awards only. 2016 funding of the nurses pay award is already included in the MTFP. Funding for the 2016 cost of doctors pay awards will be the subject of further discussion and agreement in 2016.

Recommendation

The Minister is recommended to approve the following transfers from the Central Contingency (Pay Provision) to the Health and Social Services Department (H&SS) for costs associated with Pay Awards to Nurses and Consultant and Middle Grade Doctors:

a one-off budget transfer of £265,000 in 2015 to fund the nurses’ pay award; noting that a recurring allocation of £265,000 is already approved in H&SS’s cash limit in the MTFP from 2016;
a one-off budget transfer of £120,000 in 2015 to fund the 2015 Consultant and Middle Grade Doctors’ Pay Award for the period 1st April 2015 to 31st December 2015.

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.

Resource Implications

Central Contingency (Pay Provision) to decrease by £385,000 in 2015 and the H&SS revenue head of expenditure to increase by an identical amount. This decision does not change the total amount of expenditure approved by the States for 2013 - 2015.

Report author : Assistant Accountant, Financial Planning	Document date : 27th January 2016
Quality Assurance / Review : Head of Decision Support	File name and path: L:\Treasury\Sections\Corporate Finance\Treasurer Delegated Decisions\TR-2016-DD017 - 2014 Doctors' Pay - Central Contingency Funding
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