Pay Award 2013: 1% Non-Consolidated and 1% Consolidated: Contingency Funding: Transfer

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made 23 January 2013:

Decision Reference: MD-HSS-2013-0003
Decision Summary Title:	Contingency Funding for 2013 1% Non Consolidated Pay Award and 1% Consolidated Pay Award		Date of Decision Summary:	23 January 2013
Decision Summary Author:	Assistant Director of Finance - Planning		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Contingency Funding for 2013 1% Non Consolidated Pay Award and 1% Consolidated Pay Award		Date of Written Report:	January 2013
Written Report Author:	Assistant Director of Finance - 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 for costs associated with the 1% Non Consolidated Pay Award and 1% Consolidated Pay Award for 2013.
Decision(s): The Minister for Health and Social Services approved a budget transfer for contingency funding of £2,096,000 from the Central Contingency (Pay Provision), comprising a non-recurrent budget transfer for costs associated with the 1% Non Consolidated Pay Award (£897,000) and a recurrent budget transfer for costs associated with the 1% Consolidated Pay Award (£1,199,000) for 2013.
Reason(s) for Decision: Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorized 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. The SEB have offered a 1% Non Consolidated Pay Award and 1% Consolidated Pay Award for 2013 for which contingency funding is held in the States of Jersey Central Contingency (Pay Provision). In order to make the payments associated with this award it is necessary to have the budget transferred to the Health and Social Services Department’s head of expenditure.
Resource Implications: The Health and Social Services Department’s revenue head of expenditure will increase by £2,096,000 for 2013. This decision does not change the total amount of expenditure approved by the States for 2013.
Action required: Director of Finance for Health and Social Services to liaise with Treasury and Resources Department to effect the necessary budget transfer.
Signature:		Position: Minister for Health and Social Services
Date Signed:		Date of Decision:

Pay Award 2013: 1% Non-Consolidated and 1% Consolidated: Contingency Funding: Transfer

- 1 -

Health and Social Services

Ministerial Decision Report

Contingency Funding for THE 1% CONSOLIDATED AND 1% NON CONSOLIDATED PAY AWARD FOR 2013

Purpose of Report

To enable the Minister for Health and Social Services to approve a 2013 request for contingency funding from the Central Contingency (Pay Provision) to the Health and Social Services Department’s head of expenditure for costs associated with the 1% Consolidated and 1% Non Consolidated Pay Awards for 2013.

Background

On 4th December 2012, the Chief Minister announced in the States that the employer would be implementing the final pay offer made initially on 12th July 2012.

The final offer provides for;-

2012, 1% non consolidated pay award paid as a one off lump sum, with effect 1st January 2012;
2013, 1% consolidated pay award plus 1% non consolidated pay award paid as a one off lump sum, with effect 1st January 2013;
2014, 4% consolidated pay award with effect 1st January 2014 in return for a modernisation agreement;
A guarantee of no compulsory redundancies until the end of 2014.

In 2013, the Council of Ministers has made provision in the Medium Term Financial Plan (MTFP) for a Central Contingency (Pay Provision) for the 1% Consolidated and 1% Non Consolidated Pay Award for 2013. The implementation of the pay offer requires a transfer of funding to those departments affected by the pay offer.

The 1% Non Consolidated Pay Award for Health and Social Services is £897,000 and represents a one-off payment in 2013 and is only calculated on basic pay. The 1% Consolidated Pay Award of £1,199,000 is recurring and is calculated on pay plus social security and pension contributions. The 2014 4% Consolidated Pay Award will require further Ministerial Decisions to transfer budget to the Health and Social Services Department. Provision has been made in the MTFP as part of the Central Contingency (Pay Provision) in order that this proposed 4% Consolidated Pay Award from January 2014 can be funded. Once the 2014 pay award has been confirmed, the necessary Ministerial Decisions to transfer the budget will be drafted.

Certain groups are not provided for in these pay awards. Doctors and Consultants are tied to settlements in line with UK arrangements. Additional pay awards for nurses which may be made over and above the levels outlined above are not provided for.

The required transfer from Central Contingency (Pay Provision) to the Heath and Social Services Department’s head of expenditure is the cost of the 1% Consolidated (£1,199,000) and 1% Non Consolidated Pay Award (£897,000) for 2013. The total budget to be received for the 2013 pay awards is £2,096,000.

3. Recommendation

The Minister for Health and Social Services is recommended to approve a budget transfer for contingency funding of £2,096,000 from the Central Contingency (Pay Provision), comprising a non-recurrent budget transfer for costs associated with the 2013 1% Non Consolidated Pay Award (£897,000) and a recurrent budget transfer for costs associated with the 2013 1% Consolidated Pay Award (£1,199,000).

4. Reason for Decision

Article 17(2) of the Public Finances (Jersey) Law 2005 states that the Minister for Treasury and Resources is authorized 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.

5. Resource Implications

The Health and Social Services Department’s revenue head of expenditure will increase by £2,096,000 for 2013. This decision does not change the total amount of expenditure approved by the States for 2013.

Report author : Assistant Director of Finance - Planning	Document date :22 January 2013
Quality Assurance / Review : Director of Finance & Information	File name and path:
MD sponsor :Director of Finance & Information	File name and path: