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5
WQ.232/2018
WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY DEPUTY R.J. WARD OF ST. HELIER
ANSWER TO BE TABLED ON TUESDAY 6th NOVEMBER 2018
Question
Further to her answers to Written Question 110/2018, in which she said that £12.293 million was available for pay and workforce modernisation in 2017 (of which £4.767 million had been allocated for the recurring effects of the 2017 pay award), and to Oral Question 113/2018, in which she said that £6.7 million was allocated in the Medium Term Financial Plan for pay awards in 2018, will the Minister explain how these two answers can be reconciled and clarify how much funding is available for pay awards in 2018?
Answer
In the interest of clarity for members, the written question the Deputy refers to actually stated that £12.293 million was a provision within Central Contingencies for pay and workforce modernisation in 2018 not 2017.
A consequence of a 3 year plan is that any provisions for pay awards and other workforce modernisation costs must take into account any recurring effect of decisions made in years 1 and 2.
For example, £4.767 million was allocated in 2018 as the recurring effect of the 2017 award as explained in the answer to written question 110/2018.
Year 2 of a 3 year plan assumes the year 1 provision is repeated in year 2 plus a further provision for year 2 itself. In year 3 you have to provide for years 1 and 2 again with a further new provision for year 3.
In the MTFP addition that provision was £12.293 million in year 2 which was made up of year 1's provision of £5.6 million and year 2's new provision of £6.7 million, as stated in the answer to oral question 113/2018.
Again, for clarity these sums of money that have been provided for include funding not just pay awards but also for other Workforce Modernisation costs. They include a provision for the increased costs to the employer of moving from the old PECRS (Public Employees' Contributory Retirement Scheme) pension scheme to the new PEPS (Public Employees' Pension Scheme) care (career averaged revalued earnings) Scheme and a provision for the increases to the Pre1987 debt repayment.
Of the sums provided for in the MTFP addition after deducting the recurring effect of the 2017 award and the PECRS to PEPS cost increases and the Pre1987 Debt repayments, £5.6 million remains available in 2018.