Pay policy statement

This policy statement has been reviewed by the Remuneration Committee and has been approved by the Council. It will be subject to review annually and in accordance with new or proposed legislation to ensure that it remains relevant and effective. It is effective from 1 April 2024.

Introduction, overview and purpose

Under Section 112 of the Local Government Act 1972, the Council has the “power to appoint officers on such reasonable terms and conditions as the authority thinks fit”.  This Pay Policy Statement (the ‘statement’) sets out the Council’s approach to pay policy in accordance with the requirements of Section 38-43 of the Localism Act 2011 and has been drafted with due regard to the associated Statutory Guidance including the Supplementary Statutory Guidance issued in February 2013, the Local Government Transparency Code 2015, and the Statutory Guidance on Special Severance Payments issued under section 26 of the Local Government Act 1999.  (See also section 2.2).

The purpose of this statement is to provide transparency with regard to the Council’s approach to setting the pay of its employees, excluding teaching staff, employees working in local authority schools and academies and alternative service delivery models.

This statement details the methods by which salaries for all roles are determined.  This statement will be published on the Council’s public website and will be available in other formats upon request.

Procedural and approval requirements set down in the Council’s Constitution will be applied as required. 

In determining the pay and remuneration of all its employees, the Council takes account of the need to ensure value for money in respect of the use of public expenditure.

The Council also aims to develop and implement rewards systems and structures which meet the following requirements.

• allow the Council to recruit and retain high calibre employees to provide high quality services.
• maintain levels of pay which are in line with the Council’s financial policies and provide value for money.
• are open, transparent and accountable.
• are fair and consistent.

Once approved, this policy statement will come into effect on the 1st April 2024 superseding the 2023/24 statement and will continue to be reviewed on an annual basis.

Definitions

To support the transparency of the Pay Policy Statement, below are definitions for common words/phrases that are used throughout.

Remuneration

For the purposes of this statement remuneration includes three elements – basic salary, pension and all other allowances arising from employment.

Chief Officers

The definition of Chief Officers is defined as the officer designated as the Head of the Authority’s Paid Service; a statutory chief officer – which under the Local Government and Housing Act 1989 means Corporate Director of Children’s Services, Corporate Director of Adult Social Care, Corporate Director of Public Health and Community Safety, Section 151 Officer and Monitoring Officer.

The definition of a non-statutory chief officer which under section 2 (7) of the 1989 Act means direct reports of the Head of Paid Service  (HOPS), a person for whom the HOPS is directly responsible; a person who, as respects all or most of the duties of his/her post, is required to report directly or is directly accountable to the head of the authority's paid service; and any person who, as respects all or most of the duties of his/her post, is required to report directly or is directly accountable to the local authority themselves or any committee or sub-committee of the authority.

In the case of the Council these posts are:

• Chief Executive (Head of Paid Service)

Statutory Chief Officers 

• Executive Director of Resources and Section 151 Officer
• Corporate Director of Children’s Services 
• Corporate Director of Adult Social Care and Housing 
• Corporate Director of Public Health and Community Safety
• Director of Law and Governance and Monitoring Officer 

Non-Statutory Chief Officers

 Executive Director of People 

• Corporate Director of Environment and Place
• Director Strategy, Insight and Communications (interim arrangement)

Lowest Paid Employees

The lowest paid persons employed under a contract of employment with the Council are employed on full time [37 hours] equivalent salaries in accordance with the minimum spinal column point currently in use within the Council’s grading structure. According to the pay scales, the lowest pay that employees receive is at Grade 1, Spinal Point 1 which is the lowest standard pay point.  The salary on this grade is currently payable to staff carrying out cleaning roles.  As of 1 January 2024, this is £22,366 per annum which equates to £11.59 per hour. The National Living Wage is currently £10.42 per hour, rising to £11.44 from 1st April 2024. The current Oxford Living Wage is £11.35. 

Lowest paid employees exclude apprentices due to their trainee status and exclude staff who transferred into the Council under TUPE protected rates.

Pay Multiples

The pay multiple is the relationship between two different pay amounts, showing the number of times one value is contained within another value.  The relationships will be shown between:

• the highest paid taxable earnings (including base salary, variable pay, bonuses, allowances and cash value of any benefits in kind) and the lowest paid taxable earnings.
• the highest paid taxable earnings (including base salary, variable pay, bonuses, allowances and the cash value of any benefits in kind) and the median earnings figure of the whole workforce.
• the average median salary of Chief Officers and the median earnings figure of the whole workforce.

Pay Strategy 

We undertake a review of the remuneration of all staff each year in line with the National terms and conditions of employment.

We believe that taking a holistic view to remuneration ensures that our staff are rewarded fairly, and we regularly monitor our total reward packages rather than focusing on a single component such as base pay.

Pay Design

There are 9 pay schemes in operation in agreement with trade unions.  These are:

• Joint Negotiating Committee for Chief Executives of Local Authorities
• Joint Negotiating Committee for Chief Officers
• Green Book (majority of Council employees)
• Gold Book (National Joint Council for Chief and Assistant Chief Fire Officers)
• Grey Book (Firefighters)
• Blue Book (Soulbury Committee covering Educational Psychologists)
• Burgundy Book (Teachers)
• National Joint Council for Coroners
• Agenda for Change (NHS)

The Council ensures that all pay arrangements can be objectively justified through the use of various Job Evaluation methods. 

Grading structures for all groups of employees are implemented in line with agreed published pay scales and agreed relevant national terms and conditions of employment.

Appointments 

The Remuneration Committee is the appointing body for all Statutory and non-statutory Chief Officer appointments.

The Cabinet consultation procedure would be utilised as required by regulations for Chief Officer posts.

Any pay or grading changes for Chief Officers are reviewed by Remuneration Committee and, if agreed, approved by Full Council.

Salary packages for new posts in excess of £100,000 per annum will be subject to formal approval by Full Council.
 

Pay Structures

Pay Grades and Progression

Most jobs have a grade with at least four incremental points and some grades have six points.  When an employee is appointed to a new role it is typically at the bottom of the grade unless they have significant experience in a similar role.

Pay awards are implemented in line with national negotiations annually and usually with effect from 1st April (Green Book, Chief Officers, Agenda for Change (NHS), Coroners), 1st July (Fire and Rescue), 1st September (Soulbury, Teachers) and 1st January (Chief and Assistant Chief Fire Officers). Employees progress to the next incremental point according to the relevant terms and conditions of employment. This recognises their increasing experience, and that performance progression continues until they reach the top of the grade.

High levels of performance are expected from all employees and where standards are non-satisfactory prompt managerial action will be taken to improve performance. This may include disciplinary/capability action in accordance with agreed procedures.

Pay Supplements

From time to time, it may be necessary to pay special allowances or supplements to individual employees as part of their employment contract where specific circumstances require this and where it can be justified in accordance with the Council policies.  Such allowances are determined by Council policy.  The Council uses the following:

• Market Supplements in order to attract and retain employees with particular experience, skills and capacity, for example when there are skills shortages locally or nationally.  Market supplements must be agreed by the Director of Workforce and Organisational Development and reviewed annually. 
• Honoraria may be paid where an employee has taken on additional duties and responsibilities for a defined period, for example covering a vacancy or taking on a special project. Honorariums can be paid for up to a maximum period of six months. 
• Welcome and Loyalty Payments Scheme of up to £3,500 is used to encourage experienced children's social workers into the following teams; Family Support Plus, (FSP) Multi-Agency Safeguarding Hub (MASH), Youth Justice and Exploitation Service (YJES) and Children We Care For (CWCF) and other Statutory Social Work appointments.
• On Call Allowances to compensate employees for their requirement to be available with limited notice. Rates are agreed on an individual role basis.
• Certain roles also attract shift allowances for working evenings, weekends and/or bank holidays.  Night shift premiums and allowances for waking nights are also applicable in certain roles.  These allowances are in line with the national pay schemes applicable to the role (as identified in paragraph 4).

The Council will ensure that the requirement for an additional allowance or supplement is objectively justified by reference to clear and transparent evidence and where market supplements are considered, this is with reference to data available from within and outside the Local Government sector.

Pay Supplements are subject to reviews as appropriate.

Other Employment Related Arrangements

Local Government Pension Scheme (LGPS)

Subject to qualifying conditions, employees have a right to belong to the LGPS.

The Employee contribution rates which are defined by statute, currently range between 5.5% and 12.5% of pensionable pay depending on actual salary levels.

The Employer contribution rates are set by actuaries and reviewed on a triennial basis in order to ensure the scheme is appropriately funded.  The current employer contribution rate is 19.9%.

The Council will not at any time augment the pension or membership of employees nor award or fund additional pension to employees unless required to do so by the LGPS Regulations.

Fire Brigade Pension Schemes

Subject to qualifying conditions, employees have a right to belong to the Firefighters’ Pension Scheme.

The employee contribution rates currently range between 11% and 14.5% of pensionable pay.

The Employer contribution is a fixed rate of 28.8% until March 2024.

Benefits Schemes

As part of the Reward Strategy to recruit and retain high calibre employees, the Council provides a wide range of benefits including Cycle to Work, Childcare Vouchers (for staff in post prior to 4 October 2018 as this scheme was withdrawn by the Government), and Electric Vehicle salary sacrifice schemes as well as a range of employee discounts to support the local economy. 

OCC launched Salary Finance in 2022 which are a leading financial wellbeing provider in the UK.  A key driver for this service is to support staff to develop good money habits, reduce the need and likelihood to access payday loans which have the potential to be more frequently accessed as the cost-of-living crisis deepens. Salary Finance are fully regulated and have been accredited as an ethical lender.

Our Vivup benefits platform successfully launched in 2022 as part of our wider work to support staff during the cost-of-living crisis. Employees now have access to hundreds of discounts from big brand supermarkets to broadband and utilities. OCC also offer a salary sacrifice Cycle to Work Scheme which allows employees to save money on a new bike and spread the cost over 12, 18 or 24 months.

A new Salary Sacrifice Shared Cost Additional Voluntary Contributions Scheme (SSSCAVCs) for LGPS Pension Fund Members will be launched early in 2024. 

Expenses

Expenses are based on nationally agreed levels except car mileage which is based on the HM Revenue & Customs approved rate, currently 45 pence per mile, falling to 25 pence for miles travelled in excess of 10,000 per annum. Employees can also claim 20p per mile when using their own bicycle for business purposes. 

Pay Arrangements for Senior Management 

Pay scales are reviewed annually by the Joint Negotiating Committee for Chief Executives, Joint Negotiating Committee for Chief Officers and the National Joint Council for Chief and Assistant Chief Fire Officers (as applicable) and changes usually take effect from 1st April (1st January for Chief Fire Officers).

The Council does not apply any bonuses or performance related pay.

Where the Chief Executive or other officer receives election fees these will be shown separately to salary.  These fees are set annually by the Council’s Audit and Governance Committee. In addition, a comprehensive review of election fees is undertaken by the Audit and Governance Committee every four years in readiness for the County quadrennial elections.

Pay Multiples and Medians 

The County Council is required to report on the pay multiples between its lowest and highest paid members of staff.  

  

*Please note due to the interim reporting line of the Director Strategy, Insight and Communications into the HOPS this salary has not been included in the above tables.

Payments on Termination of Employment

The Council’s approach to statutory and discretionary payments on termination of employment of chief officers prior to reaching normal retirement age is set out in its policy statement made in accordance with Regulations 5 and 6 of the Local Government (Early Termination of Employment) (Discretionary Compensation) Regulations 2006.

The Oxfordshire County Council Redundancy Scheme applies to all employees and is currently one and half times statutory entitlement based on actual pay.  It will apply where employment is terminated on redundancy grounds and redundancy payments are due.

All employees who have received a redundancy payment in relation to the termination of their contracts of employment will be subject to the provisions of the Redundancy Modification Order and will be subject to Local Government Pension Scheme (LGPS) Regulations or other pensions scheme regulations where applicable.

Severance payments for all employees will comply with the Council’s Pensions and Retirement Policy, where the circumstances in which severance takes place falls within the terms of the policy.  This sets out that early retirement may be granted for employees aged 55 years and over with at least two years membership of the LGPS.

The Council has regard to the Statutory Guidance dated 12 May 2022 on the making and disclosure of Special Severance Payments by local authorities in England and earlier Statutory Guidance on severance payments published in February 2013. Special severance payments, which are payments exceeding an employee’s statutory and contractual entitlements on termination of employment, are determined on a case-by-case basis e.g. settlement agreements, right offs of any debt or loan, hardship payment consideration, payments to employees for retraining.

Payments of £100,000 and above are subject to a formal decision made by Full Council, unless there is a good reason for departing from the Statutory Guidance; and payments below £100,000 are subject to a formal decision of either:

• relevant elected members with delegated authority to approve such payments (currently the Remuneration Committee); or 
• a suitable authorised officer.

Publication of Senior Salaries Statement

In accordance with publication requirements, there are two tables published on the Council’s website. The first showing information on the number of employees earning above £50,000 and the second showing the individual remuneration details for each senior employee, defined by regulations as the Chief Officers listed above, whose salary is more than £50,000 per year.  All allowances and other payments will be shown.  Only those employees whose salary is above £150,000 are disclosed by name, all remaining senior officers are disclosed by post title.