Public sector pay policy 2024-2025: equality impact and fairer duty assessment

5. Scope of the Equalities Impact and Fairer Scotland Duty Assessment

Pay forms a large part of public sector expenditure and accounts for over half of annual resource spending across the public sector in Scotland; our total expenditure on public sector pay is now around 25 billion. Due to continued public spending cuts, budgets remain under significant pressure.

In taking decisions on the pay policy, Ministers recognise the key role that public sector workers play in delivering the Government’s purpose and the National Outcomes.

Ministerial decisions focussed on delivering pay metrics that balanced flexibility with fairness and affordability. The pay policy provides the framework for individual employers to set pay increases in a way that are fiscally sustainable and fair while helping to sustain public sector jobs and protect public services within the tight financial position resulting from the continued real terms reduction in the Scottish Government’s resource budget.

The pay negotiating principles will set the basis of the framework in which public bodies have the flexibility to draw up their own pay proposals to consider inequalities and local pay issues and to ensure that staff do not face any detriment in their proposed pay increases. While the policy is not prescriptive on thresholds or levels of increase it does expect individual pay proposals to be progressive and protect lower paid staff. Employers are encouraged to consider measures such as setting a cash underpin, a higher percentage uplift, or a non-consolidated cash payment.

Specifically in relation to the three needs of equality duty, Public Sector Policy has due regard to the need to:

(1) Eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Act.

The purpose of the Public Sector Pay Strategy is to set the framework to deliver fair, affordable, sustainable and value for money for devolved public sector pay in Scotland.

(2) Advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it.

The aim of the pay policy is to allow individual employers to set pay increases in a way that are fiscally sustainable and fair while helping to sustain public sector jobs and protect public services within the tight financial position. We are satisfied that as the pay policy sets the overall framework there are no identified direct or indirect discrimination consequences on any of the protected characteristics.

The pay negotiating principles will set the basis of the framework in which public bodies have the flexibility to draw up their own pay proposals to consider inequalities and local pay issues and to ensure that staff do not face any detriment in their proposed pay increases. While the policy is not prescriptive on thresholds or levels of increase it does expect individual pay proposals to be progressive and protect lower paid staff. It is noted there is a higher representation of women, disabled people, those from a minority ethnic group and those from the younger age group among lower earners, and any targeting by individual employers will help provide such individuals with a positive benefit as well as work towards reducing the gender pay gap and overall income inequality.

The strategy sets the overarching framework which is applied on the same basis to all staff regardless of gender, age, disability, ethnicity etc.

(3) Foster good relations between persons who share a relevant protected characteristic and persons who do not share it.

While the policy provides the framework it is for public bodies to make individual choices on the impact of the policy on their specific circumstances considering their own staffing profile and HR policies.

All employers are required to confirm they have considered their obligations under equalities legislation in developing their pay proposals. Furthermore, as part of the pay remit process public bodies are required to provide equality focussed information. This enables the Public Sector Pay team to analyse the impact of the pay policy on individuals by gender, age, work pattern, disability and ethnicity. Gathering and analysing this information centrally and sharing the results will aid other employers in developing their own pay proposals.