Report to:			Council
Date:			16 February 2023
Title:			Pay Policy Statement
Portfolio Area:			Leader – Cllr J Pearce
Wards Affected:			All
Urgent Decision:		N		Approval and clearance obtained:			Y
Date next steps can be taken: Immediately following this meeting.
Author:	Andy Wilson				Role:	Head of Human Resources
Contact:	01803 861154: andy.wilson@swdevon.gov.uk

RECOMMENDATION:

That Council agrees the Pay Policy for 2022/23 (as set out at Appendix A).

1. Executive summary

1.1. The Council is required under the Localism Act 2011 to agree and publish a pay policy statement each year before 31 March, which includes details of remuneration received by chief officers.

1.2. The report proposes that the Council agrees the pay policy statement (attached at Appendix A). 

2. Background

2.1. Section 38 of the Localism Act 2011 requires local authorities in England and Wales to prepare and publish a statutory pay policy statement for 2012/2013 and each financial year thereafter. Once agreed, the policy will be published on the Council’s website.

2.2. The pay policy statement sets out the authority’s policies for the financial year relating to the remuneration of its chief officers, the remuneration of its median and lowest-paid employees and the relationship between the salary of the Head of Paid Service and the salaries of the median and lowest paid employees.

3. Outcomes/outputs

3.1. Pay Policy Statement

3.2. The Hutton Report identified that the most appropriate way of measuring pay dispersion within an organisation is the multiple of Head of Paid Service to median earnings. Tracking this multiple will ensure that the Council is accountable for the relationship between the pay of its executives and the wider workforce. Through the pay policy statement, the Council can track this multiple on an annual basis.

3.3.  If the relationship between the salary of the Head of Paid Service and the lowest paid employee exceeds a factor of 10, the Leader is required to bring a report to Full Council for consideration.  

3.4. The annual median salary of all employees is £25,927pa.

3.5. The annual salary of the lowest paid employee is £20,043pa.

3.6. The relationship between the remuneration of the Head of Paid Service and the median salary of all employees is 4.83.

3.7. The relationship between the remuneration of the Head of Paid Service and the salary of the lowest paid employee is 6.24.

3.8. Gender Pay Gap

3.9. The Council also has a separate statutory duty to publish a report on the gender pay gap of its employees by 30 March 2022.  The report will be published through the Government’s gender pay gap reporting service and on the Council website.   

4. Options available and consideration of risk

4.1. The Council has a legal requirement under the Localism Act 2011 to publish a Senior Pay Policy each year.

5. Proposed Way Forward

5.1. Council is asked to adopt the Pay Policy Statement at Appendix A and publish it on its website to meet its statutory requirements.

6. Implications

Implications	Relevant to proposals Y/N	Details and proposed measures to address
Legal/Governance	Yes	The Localism Act 2011 requires the Council to adopt and publish a Pay Policy Statement annually.
Financial	Y	There are no risks associated with the report, Pay Policy Statement.
Risk	N	There are no risks associated with the report, Pay Policy Statement.
Comprehensive Impact Assessment Implications
Equality and Diversity	N	There are no Equality or Diversity implications associated with the report or the Pay Policy Statement or the Pay and Reward Strategy.
Safeguarding	N	There are no Safeguarding implications associated with the report or the Pay Policy Statement.
Community Safety, Crime and Disorder	N	There is no positive or negative impact on crime and disorder reduction associated with the report or the Pay Policy Statement.
Health, Safety and Wellbeing	N	There are no Health, Safety and Wellbeing implications associated with the report or the Pay Policy Statement.
Other implications	N	There are no other implications associated with the report or the Pay Policy Statement.

Supporting Information

Appendices:

A: Pay Policy Statement 2022/23

Background Papers:

None.