Doctors' and dentists' remuneration (DDRB) review body - 2022-2023 pay round: evidence

A. Introduction

1. This evidence has been prepared by the Scottish Government Health and Social Care Directorates (SGHSCD) and we are now pleased to be able to submit this to you for your consideration.

2. Our remit letter to the Review Body on Doctors' and Dentists' Remuneration (DDRB) from the Cabinet Secretary for Health and Social Care was submitted on 21st December 2021. This confirms the parameters which we would wish the DDRB to work within for their 2021-22 Report and Recommendations.

3. Our approach to public sector pay is governed each year by the Scottish Public Sector Pay Policy (SPSPP).

4. The Cabinet Secretary for Finance and Economy announced the Scottish Public Sector Pay Policy (SPSPP) for 2022-23 on 9 December 2021. A copy of the SPSPP^[1] is available - this is subject to parliament approval.

5. The key features of the 2022-23 Public Sector Pay Policy are:

• setting a guaranteed wage floor of £10.50 per hour;
• providing a guaranteed cash underpin of £775 for public sector workers who earn £25,000 or less;
• providing a basic pay increase of up to £700 for public sector workers who earn between £25,000 and £40,000;
• providing a cash uplift of £500 for public sector workers who earn over £40,000.

6. The SPSPP provides discretion for employers to use up to 0.5 per cent pay bill savings on baseline salaries to address clearly evidenced equality issues in existing pay and grading structures.

Strategic Aims and Principles

7. The SPSPP is based on the following principles:

• To invest in our public sector workforce which delivers top class public services for all, supports employment and the economy, while providing for sustainable public finances.
• To provide a distinctive, progressive pay policy which is fair, affordable, sustainable and, delivers value for money in exchange for workforce flexibilities.
• To reflect real life circumstances, protect those on lower incomes, continue the journey towards pay restoration for the lowest paid and recognise recruitment and retention concerns.

Key SPSPP Priorities

8. The SPSPP has been developed in the context of Scotland's economic recovery as we emerge from the ongoing COVID-19 pandemic, and the Scottish Government's commitment to create a greener, fairer and more resilient Scotland. Ministers recognise the continuing contribution of public sector workers throughout the pandemic, as well as the impact of both inflation and the UK Health and Social Care Levy on working households.

9. As the economy continues to recover from the pandemic, and with some sectors experiencing labour shortages, Ministers remain committed to maintaining employment, delivering wage growth and a fair rate of pay in the public sector.

10. The aim of the SPSPP is to take a progressive approach to pay, allowing public sector employers to provide proportionate pay increases, combined with flexibilities to address local circumstances. This Government will continue its commitment to the real Living Wage and maintain its position on No Compulsory Redundancy.

Pay and Public Service reform

11. The SPSPP recognises the challenges that employers can face in responding to changes in demand for services and delivering wider workforce reform, including consideration of a reduced working week. In order to support employers in delivering the strategic aims of the pay policy and wider Government priorities, the policy includes the option for employers, in discussion with their trade unions, to either:

• apply the single year 2022-23 pay policy; or
• take a multiple year approach to pay enabling a more strategic approach to support achieving public service reform, particularly with reference to delivering genuinely joined up, holistic, person-centred services. This allows employers to apply increases outwith the set metrics but within an overarching framework subject to affordability and sustainability.

Key Features of the Policy for Medical and Dental staff

12. This written evidence supports the SGHSCD's longer term approach to developing the future medical and dental workforce through a clear total reward package whilst considering issues of affordability.