Public sector pay strategy 2023 to 2024: technical guide

2. Introduction

Public Sector Pay Strategy coverage

2.1 The information in this Technical Guide is for employers in the relevant public bodies listed on the public sector pay web pages although their trade unions and employees may also find it of interest. A list of all public bodies is available at: National public bodies: directory - gov.scot (www.gov.scot). The detail in sections 4 to 8 applies to the following public bodies:

2.2 The Pay Strategy also applies to all public appointments under the auspices of the Scottish Ministers. This includes, but is not limited to the following.

• All public appointments to Non-Departmental Public Bodies (NDPBs) and Public Corporations.
• Non-executive Directors of the Scottish Government and its agencies and associated departments.
• Chairs and Board Members of public bodies.
• Chairs and Board Members of short-life and ad hoc working groups, etc.
• Appointments to Tribunals, Appeal Boards, Advisory Committees and Inquiries.
• Appointments to lead Reviews, Inquiries etc.

2.3 In addition, the Pay Strategy acts as a reference point for all major public sector workforce groups across Scotland including NHS Scotland^[1], fire-fighters, police officers, teachers and further education workers. For local government employees, pay and other employment matters are delegated to local authorities.

Senior Civil Servants and other senior staff

2.4 The Pay Strategy does not apply to the remuneration of Senior Civil Servants as this is a reserved matter and operates within the UK Cabinet Office pay and performance management framework. The Pay Strategy applies to all other senior staff below Chief Executive in the relevant public bodies. Separate arrangements for Chief Executives are set out at Section 6.

Role and Responsibilities

Role and responsibilities of the public body

2.5 Thepublic body is responsible for determining the pay and conditions for its staff that are appropriate for its business needs and which take account of and comply with the Scottish Government's Public Sector Pay Strategy and processes. Where applicable, the public body's Remuneration Committee must be aware of all pay proposals for: staff, Chief Executive, Chairs and Board Members.

2.6 Each public body is expected to submit its staff pay proposals to the Scottish Government in sufficient time to ensure that they can implement their pay settlement as close to the date on which it is due(which forthe majority of public bodies is 1 April). While it is recognised that the Pay Strategy has been published later than usual, public bodies are expected to submit pay proposals as soon as possible.

2.7 Public bodies are expected to engage in early scoping discussions with their staff and staff representatives in preparing their staff pay proposals, as part of a collaborative and constructive approach to the pay process.

2.8 Public bodies are encouraged to discuss their draft proposals with the Sponsor Team before they formally submit their proposals. Where appropriate the Public Sector Pay team should be included. This will help reduce the time required for getting approval to the negotiating remit.

Role and responsibilities of the Chief Executive

2.9 TheChief Executive, as Accountable Officer^[2], has the responsibility to provide assurance that staff pay proposals are in line with the Pay Strategy. They must ensure there are robust performance management systems in place to support any progression payments. They must also ensure that assumptions and/or commitments on affordability and sustainability in 2023-24 and future years are realistic and will be delivered during the 12 months of the pay remit year.

2.10 The Chief Executive also has the responsibility to confirm that the outturn for the previous pay year is in line with the approved remit. If the outturn is submitted before the end of the pay year the Chief Executive is required to confirm that it is projected to be within the approved remit and, in particular, that the assumptions made in respect of paybill savings to fund the pay award are still valid and achievable.

2.11 It is therefore assumed all completed proforma providing this confirmation are submitted either by or on behalf of the Chief Executive or Accountable Officer on this basis.

Role and responsibilities of the Chair/Board

2.12 The Chair/Board has the responsibility to develop remuneration proposals for their Chief Executive on any new or reviewed remuneration package and ensuring Scottish Government approval is obtained, through the Sponsor team, prior to advertising, agreeing or implementing such proposals.

Role and responsibilities of the trade unions

2.13 It is expected that trade unions and/or staff representatives will want to participate in early engagement with their public body as part of a collaborative and constructive pay dialogue. However, pay negotiations must not be concluded until the staff pay remit has been formally approved.

Role and responsibilities of the Public Sector Pay team

2.14 The role of the Public Sector Pay team is to ensure all pay proposals are in line with the Scottish Government's Public Sector Pay Strategy. The team can provide advice before a public body formally submits its pay remit or makes an appointment. This may be on any technical issue that arises during the scoping discussions between public bodies and their staff representatives or in the development of remuneration proposals for Chief Executives or Public Appointments including Chairs and Board Members. The team can provide advice to make sure the proforma and the business case include all of the necessary information.

2.15 The Public Sector Pay team provides the main interface between sponsor teams and public bodies with the Remuneration Group. It is their role to advise Senior Officials, the Remuneration Group and Ministers on the wider impact of all pay and remuneration proposals.

Role and responsibilities of the Remuneration Group

2.16 The Scottish Government'sRemuneration Groupis chaired by a Non-Executive Director of the Scottish Government. The group meets regularly throughout the year and its remit includes making sure a consistent approach is taken to approval of pay remits for staff, and to remuneration of Chief Executives and Public Appointments.

2.17 When required, the Remuneration Group will consider pay or remuneration proposals and will decide whether or not proposals need to be referred to Ministers.

2.18 Details of the current membership of the Remuneration Group, meeting dates and the deadlines for papers are set out on the Scottish Government's Public Sector Pay webpages, available at: Remuneration Group.

Role and responsibilities of the Sponsor team

2.19 In conjunction with the relevant Finance Business Partner, Sponsor teams are responsible for considering and confirming the affordability and sustainability of remuneration proposals and seeking formal approval for them.

2.20 The Sponsor teams are responsible for making sure their public bodies are aware of the Scottish Government's Public Sector Pay Strategy and the processes. It is their role to advise the Public Sector Pay team on affordability and the feasibility of any proposals in relation to business efficiencies or workforce changes. They should also provide advice on any issues that Public Sector Pay team need to be aware of that may impact on the rating of the pay proposals.

2.21 Sponsor teams are also responsible for considering, along with the Public Sector Pay team, any remuneration proposals for Chief Executives, Chairs, Board Members and Public Appointments (whether or not the Public Appointment is linked to a public body). If a new Chair is appointed to a public body, it is the role of the Sponsor team to inform them of the Public Sector Pay Strategy and this Technical Guide.

2.22 Further detail on the role and responsibilities of the Sponsor team is set out in section 9 of this guide.

Role and responsibilities of Scottish Government Senior Officials

2.23 Senior Officials include Directors, Director Generals and the Permanent Secretary.For NDPBs and Public Corporations, the Director of the relevant sponsoring directorate is responsible for ensuring good governance within their public bodies in respect of the Public Sector Pay Strategy, the processes and where appropriate approving proposals. The Director for Budget and Public Spending is responsible for approving for Public Sector Pay Strategy interests. These Senior Officials have the option to refer proposals to Remuneration Group when they consider they are of sufficient interest.

2.24 The relevant Director General will take on this role in relation to Agencies and to Public Appointments not linked to a public body. The Permanent Secretary takes this role for associated departments, the Scottish Government's main bargaining unit and the Scottish Government Marine (offshore) bargaining unit.

Role and responsibilities of the Scottish Government Finance Business Partner

2.25 In conjunction with the relevant Sponsor team, the Finance Business Partner is responsible for considering and confirming the affordability and sustainability of remuneration proposals and seeking formal approval for them.

2.26 The Finance Business Partner is responsible for providing comment on the affordability of the proposals within agreed budget allocations (taking into account delivery of efficiency savings and any workforce reforms) and on whether the proposals offer value for money.

Role and responsibilities of Scottish Ministers

2.27 If Ministerial approval is required, the proposals will need to be approved by the relevant Portfolio Cabinet Secretary or Minister and the Cabinet Secretary for Finance. Referrals to Ministers must include Remuneration Group advice.