To present the Council’s draft Pay Policy Statement 2025/26 for recommendation onto Full Council for approval and adoption.

The Committee heard that the Localism Act 2011, Chapter 8 (Pay Accountability) Sections 38 and 39, required the Council to prepare a Pay Policy Statement that articulated the Council’s approach to a range of issues relating to the pay of its workforce.

Members were told that, Schedule 2 of Part 3 of the Constitution confirmed Full Council was responsible for the preparation and approval of a Pay Policy Statement for the upcoming financial year in accordance with Chapter 8 of the Localism Act 2011.

Officers informed Members that the Human Resources and Council Tax Committee had historically overseen the preparation of a draft Pay Policy Statement for recommendation onto Full Council for its approval and adoption.

Members were also informed that matters that must be included in the statutory Pay Policy Statement were as follows:-

-       A local authority’s policy on the level and elements of remuneration for each Chief Officer.

-       A local authority's policy on the remuneration of its lowest-paid employees (together with its definition of “lowest-paid employees” and its reasons for adopting that definition).

-       A local authority’s policy on the relationship between the remuneration of its Chief Officers and other Officers.

-       A local authority’s policy on other aspects of Chief Officers’ remuneration: remuneration on recruitment increases and additions to remuneration, use of performance related pay and bonuses, termination payments and transparency.

The Committee was reassured that the draft Pay Policy Statement 2025/26 therefore outlined the Council’s approach to remuneration, detailing policies on the pay of Chief Officers and the lowest-paid employees, the relationship between different levels of pay, and the Council’s adherence to the National Pay Grades set by the National Joint Council (NJC). That framework ensured a fair and transparent approach to remuneration, including incremental progression based on service length and performance.

Members noted that the statement also covered discretionary allowances for statutory and non-statutory officers, the use of market forces supplements to address recruitment and retention challenges, and the Council’s policies on organisational change and redundancy payments, pay protection, and access to the Local Government Pension Scheme.

The Committee was also told that it set out the Council’s position on the provision of milage and subsistence payments, and its policies for overtime and standby allowances. The document also emphasised transparency and compliance with statutory regulations, including gender pay gap reporting, off-payroll working rules and severance payments.

Officers also informed Members that there was limited change reported in the 2025/26 draft Statement with the exception of the implementation of the 2024/25 pay award, (following agreement between National Employers and National Unions) whereby, there were further, notable changes at the lower to mid-end of the pay spine, as follows:-

Effective from 1 April 2024:

-       An increase of £1,290 (pro rata for part-time employees) will be added as a consolidated permanent addition on all NJC pay pints 2 to 43.

-       A 2.50% increase on all pay points above 43.

-       A 2.50% increase on all allowances.

The Committee was made aware that the latest pay award meant an employee on the bottom pay point in April 2021 (earning £18,333) would have received an increase in their pay of £5,323 (22.06%) over the three-year period to April 2024. For an employee at the mid-point of the pay spine (pay point 22), their pay would have increased over the same period by £5,140 (15.7%).

Further, the document had been reviewed to ensure it remained legally compliant, reflected best practice, and maintained a high level of transparency for both staff and the residents of Tendring. Changes applied to the draft Pay Policy Statement in 2025/26 were highlighted throughout the document in red text.

Officers reminded Members that the Human Resources and Council Tax Committee was requested to review and provide any comments on the draft Pay Policy Statement 2025/26 before its submission to Full Council.

Members noted that as soon as reasonably practicable after approving the draft Pay Policy Statement, the Authority must publish the Statement. Therefore, the Statement would be published on the Council's website following approval by Full Council in March 2025.

It was moved by Councillor Amos, seconded by Councillor Guglielmi and:-

RESOLVED that the draft Pay Policy Statement 2025/26, as set out in Appendix A of the Officer report (A.3), be recommended onto Full Council for approval and adoption.