To present the Council’s draft Pay Policy Statement for 2026/27 and to invite the Human Resources and Council Tax Committee to review and comment on the Statement prior to its submission to Full Council for approval, in line with the statutory requirements of the Localism Act 2011.

The Committee heard that the Localism Act 2011 (Chapter 8 – Pay Accountability, Sections 38-39) placed a statutory requirement on all local authorities to prepare and publish a Pay Policy Statement on an annual basis. The Statement must set out the Council’s policy in relation to the pay of its workforce for the forthcoming financial year.

Members were told that, under Schedule 2 of Part 3 of the Council’s Constitution, the preparation and approval of the Pay Policy Statement was a function reserved to Full Council. The Human Resources and Council Tax Committee had, however, traditionally exercised responsibility for reviewing the draft Statement for recommendation onto Full Council for its approval and adoption.

Statutory Requirements

Officers informed Members that the Pay Policy Statement must, as a minimum, include the Council’s policy on:

• the levels and elements of remuneration for each Chief Officer. That included the Statutory Officer roles of Head of Paid Service (Chief Executive), Monitoring Officer, and Section 151 Officer. It also applied to Non-Statutory Chief Officers, as defined within the Council’s Pay Policy Statement. For the purpose of the Statement, Chief Officers were those Officers who, in addition to the Statutory Officers named above, formed part of the Council’s Senior Management Team.

• the remuneration of the Council’s lowest-paid employees, including the definition of ‘lowest-paid’ and the rationale for its adoption.

• the relationship between the remuneration of Chief Officers and other employees.

• other aspects of Chief Officers’ remuneration, including policies on recruitment, pay progression, performance-related pay, bonuses, termination payments, and transparency.

Members were also informed that Sections 38-41 of the Localism Act 2011 set out the statutory framework governing Pay Policy Statements. Section 41 required that decisions relating to Chief Officer remuneration must be made in accordance with the authority’s Pay Policy Statement. The Council was also required to comply with wider statutory reporting requirements, including the Local Government Transparency Code 2015 and the Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017.

Summary of the Draft Pay Policy Statement 2026/27

The draft Pay Policy Statement for 2026/27 set out the Council’s overarching approach to pay and remuneration. It affirmed the Council’s adherence to the National Joint Council (NJC) National Pay Spine and its commitment to a fair, transparent and equitable pay framework. That included incremental progression based on length of service and performance, alongside compliance with nationally agreed pay awards.

The Statement also detailed:

• discretionary allowances available to statutory and non-statutory Officers;

• the application of market forces supplements where required to support recruitment and retention;

• policies relating to organisational change, redundancy payments, pay protection arrangements and access to the Local Government Pension Scheme;

• provisions relating to mileage and subsistence, overtime, standby payments and other employment-related allowances; and

• the Council’s compliance with statutory reporting requirements, including the Gender Pay Gap, off-payroll working rules and the disclosure of senior salaries and severance payments.

Changes for 2026/27

Members noted that the draft Pay Policy Statement for 2026/27 reflected a number of updates to ensure continued compliance, transparency and alignment with national frameworks. The main changes related to updates in national pay arrangements, statutory reporting requirements, and associated workforce policies. Those included:

• implementation of the nationally agreed 2025/26 NJC pay award, including the removal of Spinal Column Point 2 from 1 April 2026, in accordance with the national pay spine changes;

• updated pay multiple calculations to reflect the revised lowest-paid spinal point and the associated forecast change in the pay multiple for 2026/27;

• updated gender pay gap figures and narrative in line with the latest statutory reporting period; and

• confirmation of the Council’s use of Essex County Council’s Managed Service Solution framework for temporary staffing, supporting consistent and compliant off-payroll engagement.

The Committee was also told that all amendments were shown in red text with the draft Statement (Appendix A) for ease of reference. The Policy had been reviewed to ensure it remained fully compliant with legislation, supported best practice in pay and reward, and maintained transparency for staff, Members and residents.

Officers also informed Members that the Human Resources and Council Tax Committee was invited to review the draft Pay Policy Statement for 2026/27 and provide any comments prior to its submission to Full Council.

The Committee was made aware that, following approval by Full Council on 31 March 2026, the Pay Policy Statement would be published on the Council’s website, as required by the Localism Act, as soon as reasonably practicable.

It was moved by Councillor Guglielmi, seconded by Councillor G Stephenson and unanimously:-

RESOLVED that the draft Pay Policy Statement 2026/27, as set out in the Appendix to the Officer report (A.3), be recommended onto Full Council for its formal approval and adoption.