New Local Government Pay Offer
The introduction of the National Living Wage in April 2016 will increase the base rate of pay for lower graded staff over the age of 25 to £7.20 per hour, rising to £9 per hour in 2020.
A dialogue has been ongoing between the Trade Unions (representing employee interests) and the National Employers (representing employer interests, primarily local authorities) in response to the announcement of the National Living Wage by the Government.
Discussions to date
The Trade Unions have been calling for:
- deletion of nationally and locally agreed pay points for non-teaching staff which fall below the level of the National Living Wage, and;
- a flat rate increase of £1 per hour on all other pay points.
This would have entailed pay points 6 to 15 becoming obsolete between 2016 and 2020, for those schools using them, and a £1 per hour increase being applied to all other pay points.
Latest pay offer
The National Employers have made a final offer to the Trade Unions. This offer, rather than deleting the lower pay points for non-teaching staff, applies a significant increase to the lower pay points to bring them in line with the National Living Wage over the next two years. It also applies an uplift to higher pay points as well, to ensure a differential is maintained between lower and higher pay points.
This offer does not accept the Trade Union proposal of allowing for deletion of lower pay points that would otherwise become obsolete with the introduction of the National Living Wage.
Implications for schools
The introduction of the National Living Wage would have entailed a gradual increase in staff costs for schools. The latest offer from the National Employers is likely to result in significant immediate cost to many schools from April 2016 as a broader range of pay points will be affected.
Full details of the proposed increase to pay scales are included in the detailed guidance.
The Schools HR service will be holding a Termly Briefing for School Leaders on date 1st and 2nd March 2016 to include the latest pay offer. The topic will also be covered at the School Business Manager briefing on 20 January 2016.
You can also contact the Schools HR Service on 01438 844873, Financial Services for Schools on 01992 555713 or School Business Management Service on 01438 845529 for further advice.