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

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While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.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 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:

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

Treasury and Exchequer

Ministerial Decision Report

Allocation of reserves funding for back pay element of 2020 pay awards

Purpose of Report

To enable the Minister to approve the allocation of up to £794,300, from the “Reserve for Centrally Held Items” to various departments as detailed below, to cover the backpay costs associated with the 2020 pay award of 4.0% to the Doctors and Consultants paid under £100,000 and 2.7% to the Senior Leaders paid over £100,000, that has been paid in 2021.

Background

Funding provisions were made in the Government Plan 2021-2024 in the “Reserve for Centrally Held Items” for anticipated pay awards across all pay groups.

Pay Awards

Senior Leaders, Doctors and Consultants

The allocations approved in May (MD-TR-2021-65) and June (MD-TR-2021-80) included funding of the recurring budget impact for pay awards covering 2020 and 2021 to Senior Leaders paid over £100,000 and Doctors and Consultants Pay Groups. However, the backpay element for the 2020 pay award (for the calendar year January – December 2020) has yet to be allocated as follows:

- the 2020 pay award at 4.0% to Doctors and Consultants Pay Groups paid under £100,000, paid in 2021 and;

- the 2020 pay award at 2.7% to Senior Leaders paid over £100,000, paid in 2021.

Recommendation

The Minister is recommended to approve the allocation from the “Reserve for Centrally Held Items” to the Heads of Expenditure, as detailed in the table below, in 2021 to cover the effect of the 2020 Pay Awards backpay.

Reasons 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 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.

5. Resource Implications

The “Reserve for Centrally Held Items– Pay Award Inflation” to decrease by up to £794,300 and the in 2021, and various heads of expenditure to increase, as detailed in the table above.

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.

Report author: Manager – Financial Planning	Document date: 24th November 2021
Quality Assurance / Review: Group Director, Strategic Finance/ Head of Financial Governance	File name and path: L:\Treasury\Sections\Corporate Finance\Ministerial Decisions\DS, WR and SD\2021-0130 - Reserve funding for back pay element of 2020 pay awards
MD sponsor: Treasurer of the States