1. This offer covers all staff within the Department for Work and Pensions (DWP) bargaining group in post on 30 June 2003. Unless otherwise stated all changes will be effective from 1 July 2003.
2. Any staff who have transferred into DWP on or after 2 April 2003 from another government department do not have an automatic entitlement to the DWP pay increase from 1 July 2003. In these circumstances payroll will contact the previous department to ascertain if they are entitled to the DWP pay award or the exporting department’s pay award. This policy also applies to staff on loan or secondment from other government departments or organisations. Any entitlement to the pay increase in these circumstances will be paid separately from the main pay award but will be effective from 1 July 2003.
3. The total value of the offer is £120m, which represents an average increase of around 5.05% (based on the final 1 April 2004 position)
4. The main features of this pay award are as follows:
5. The order of calculation of the 2003 pay award is as follows:
6. The total standard progression payment will be paid in two stages. The total payment will be calculated as described in the pay progression section of this letter. With effect from 1 July 2003 a payment will be made of either 2.6% of their 2002 salary or £500 or move to the new band minimum, whichever amount is higher. Any remaining balance up to the maximum will be paid from 1 April 2004.
7. Pay progression has always been a matter of joint concern to management and the trade unions. This award builds on efforts in previous pay rounds to offer faster progression. This year progression payments will be in two stages.
8. For executive grades/pay bands, the standard total progression payment will be equivalent to 1/6th of the difference between their new pay scale minimum and the new pay scale maximum. As strict application of this formula would produce an anomalous outcome for HEO/band D and grade 6/band G staff they will receive an increased progression payment worth £50 more than that on offer to EO/band C and grade 7/band F staff.
9. The following table shows the total amount added to your salary if you are below pay scale maximum:
| Grade/band | National | Specified location pay zone | London inner | London outer |
| EO/band C | £960 | £1,028 | £1,058 | £1,060 |
| HEO/band D | £1,010 | £1,078 | £1,108 | £1,110 |
| SEO/band E | £1,125 | £1,165 | £1,162 | £1,165 |
| G7/band F | £2,362 | £2,463 | £2,483 | £2,463 |
| G6/band G | £2,412 | £2,513 | £2,533 | £2,513 |
10. In pay 2003 the use of pay points to progress up the pay scale has been suspended and administrative staff and equivalents will receive a fixed standard total salary progression as follows:
| Grade/band | National | Specified location pay zone | London inner | London outer |
| Cleaners (all) | £750 | N/A | £750 | £750 |
| AA/band A | £750 | £800 | £800 | £800 |
| SGB2 | £750 | N/A | £800 | £800 |
| AO/band B | £850 | £900 | £900 | £900 |
| SGB1 | £850 | N/A | £900 | £900 |
The use of pay points for pay progression may be used in future pay rounds. To provide a starting point, the 2002 pay scales have been revised and uprated. Appendix 2 of this document shows these scales. It does not show how salaries will be adjusted in this years pay round.
11. This award is effective from 1 July 2003 and will be paid in two stages:
12. To qualify for this years pay award staff must be employed by DWP on 30 June 2003 and be a satisfactory performer.
13. To be entitled to a stage two payment an individual must have been employed on 30 June 2003 and 31 March 2004 and have received the stage one award. Payment of stage one will be offset when making the stage two payment subject to not exceeding the maximum of the pay scale.
14. Staff leaving the home civil service between 1 July 2003 and 31 March 2004 will not receive stage two of the pay award.
15. Staff returning from career breaks, long term sick absence, (either at nil pay or sick pay at pension rate) or special leave without pay, will receive the appropriate pay award and be assimilated onto the point on the pay scale as though they had remained at work and received a qualifying appraisal marking.
16. Unsatisfactory performers will have their salary frozen at pay 2002 levels unless they are below their new scale minimum, in which case their pay will be increased to the new band minimum.
17. Some staff from the former ITSA (ITSG), and in the former EO/HEO Accountancy pay bands have reserved rights to a maximum that remains above the corporate DWP maximum for the grade. These reserved rights apply to the staff shown in the table below:
| ITSA (ITSG) HEO (London outer) | £31,127 |
| ITSA (ITSG) HEO (London inner) | £31,927 |
| ITSA (ITSG) EO (National) | £21,639 |
| ITSA (ITSG) PES (National) | £16,821 |
| EO accountant (National) | £23,550 |
| EO accountant (London outer) | £26,430 |
| EO accountant (London inner) | £27,270 |
| HEO accountant (National) | £29,410 |
| HEO accountant (London outer) | £33,300 |
| HEO accountant (London inner) | £34,330 |
18. Staff with reserved rights to the above pay scales on 30 June 2003 will retain the right to progress to the frozen maximum of that scale until such a time as the DWP maximum exceeds the frozen maximum. All payments up to the level of the frozen maximum will be made as a consolidated award.
19. Staff who have protected rights to temporary promotion and are satisfactory performers or above in the temporary promotion grade/pay band, will have both their substantive and higher grade/pay band salaries progressed as normal.
20. Those staff who had a protected temporary responsibilities payment (TRP) rate in 2002 following merging of the split bands will continue to receive protection as follows:
21. Individual performance bonuses will be paid to all eligible staff employed by DWP and in post as at 1 July 2003 including casuals, as shown in the table below. Payment will be made as a non-consolidated lump sum payment to those staff who have achieved the box markings as set out in the tables below:
| DWP (excluding child support agency) | ||||
| Payband | Box 1 | Box 2 | Box 3 | Box 4/5 |
| Band A/AA | £160 | £120 | £100 | Nil |
| Band B/AO | £190 | £150 | £120 | Nil |
| Band C/EO | £240 | £185 | £150 | Nil |
| Band D/HEO | £300 | £230 | £180 | Nil |
| Band E/SEO | £370 | £290 | £220 | Nil |
| Band F/G7 | £480 | £380 | £290 | Nil |
| Band G/G6 | £600 | £475 | £360 | Nil |
The ex DSS HQ Box 1 – 5 system equates to the ex-DfEE box A – E system.
| DWP (excluding child support agency) | ||||
| Grade/payband | Box A | Box B | Box C | Box D |
| Band A/AA | £140 | £115 | Nil | Nil |
| Band B/AO | £180 | £140 | Nil | Nil |
| Band C/EO | £220 | £175 | Nil | Nil |
| Band D/HEO | £280 | £220 | Nil | Nil |
| Band E/SEO | £340 | £275 | Nil | Nil |
| Band F/G7 | £450 | £360 | Nil | Nil |
| Band G/G6 | £570 | £450 | Nil | Nil |
The ex DSS BA box A – D system equates to the ex-DfEE 4 box marking system for officers in Runcorn.
| Child support agency | |||
| Grades/paybands | Box A | Box B | Box C |
| All grades/paybands | £600 | Nil | Nil |
22. Performance bonus payments are non-consolidated, non-pensionable payments and non-reckonable for overtime purposes. Payments are reckonable for tax and national insurance contributions. The calculation of the amount due for the 2002-2003 performance year will be in accordance with existing pay policies as detailed in appendix 3.
23. We believe that bonus payments represent a payment for a contribution made, for example either by achieving a target or by making an exceptional contribution, as a result of continuous actual attendance at the place of work. Therefore, with effect from 1 April 2004, subject to the remainder of this paragraph and the principles in general, an individual will not be eligible for a bonus in respect of a period when they are not actually at work. Bonus schemes will therefore, other than very short term paid absences of 5 days or less in any one performance year and periods of annual, public and privilege leave, count only periods at work as reckonable for bonus payment purposes.
24. In very exceptional cases, for instance where there are out of the ordinary compassionate or public service factors that are clearly outside the control of the individual in question and not covered by existing pay and condition policies, paid absence over and above the 5 day limit can be treated as reckonable for bonus purposes. Where managers believe that there are compelling reasons to disregard a period of absence they should consult their HR business partner and obtain specific clearance from their respective business head of reward. The business head of reward must consult the corporate reward team before making a decision.
25. From 5 April 2004 we intend to extend the availability of flexible starting pay to successful applicants for posts in recruitment exercises/trawls that are not advertised externally but are extended beyond DWP to other government departments and other designated partnerships.
26. Flexible starting pay will be available to managers to use when recruiting staff from other government departments where that recruitment is done through fair and open competition as part of a recognised exercise.
27. During 2002 and the early part of 2003 a review was carried out of the main specialist pay scales in DWP. The review included benchmarking salaries to help us compare DWP specialist pay with other public and private organisations. As a result of this review it has been decided to make some alterations to the pay arrangements for some specialist staff. These include:
28. A full explanation of changes to specialist pay scales is explained at appendix 4.
29. EWHA will be abolished from 5 April 2004. Staff in child support agency (CSA) at the 4 April 2004 will retain entitlement on a reserved right basis.
30. In order for CSA staff to have reserved rights to EWHA they would need to be:
31. All staff that transfer permanently out of CSA will immediately lose their entitlement to EWHA regardless of the terms of the transfer and would not regain entitlement to EWHA on any subsequent return.
32. Although EWHA is to be abolished, recruitment and retention addition policy will be enhanced to include the possibility of making payments to staff contracted to work non-standard hours where this is necessary to recruit and retain staff.
33. From the 5 April 2004, claims for the payment of excess flexi hours will be calculated using the following formula, for both full and part time staff:
34. The policies for advances of pay have been harmonised to ensure full alignment for all staff across DWP. A full list of the policies concerned are listed at appendix 5.
35. This allowance will be abolished from the 5 April 2004.
36. From the 5 April 2004 travelling time payments will be abolished for staff in grades 6/band G and grade7/band F across DWP.
37. A number of policies relating to travelling time have been harmonised to ensure full alignment for all staff across DWP. An outline of changes to the policy is provided at appendix 6.
38. We have made a number of changes to the existing RRA policy with effect from 5 April 2004. An outline of changes to the policy is provided at appendix 7.
39. From 5 April 2004 all staff returning from being on loan to another government department will be entitled to return to DWP on a salary (subject to the DWP maximum) which is the higher of:
40. From 1 July 2003 the rates of responsibility allowance will be as follows:
| Band C/EO | £1,000 pa |
| Band D/HEO | £1,200 pa |
| Band E/SEO | £1,500 pa |
| Band F/G7 | £2,000 pa |
| Band G/G6 | £2,550 pa |
41. From the 5 April 2004, SDIA will remain in payment for all DWP staff during periods of sick leave, reducing only at the same time, and in the same proportion, as sick pay is reduced. For example SDIA will be reduced by half when an officer goes on to half-rate sick pay.
42. This allowance will be abolished from the 5 April 2004.
43. A new harmonised corporate DWP language allowance will be introduced from 5 April 2004. An outline of changes to the policy is provided at appendix 8.
44. All pay allowances will be increased by 3.1% from 5 April 2004. This does not include the RRA or responsibility allowance payments.
For details of the 2002 and 2003 pay scales please see the attached document.
In pay 2003 the use of pay points to progress up the pay scale has been suspended, and all staff have been given a grade specific progression payment eg for band B/AO (National) £850 has been added to 2002 salaries in the two stages in July and April. The use of pay points for pay progression may be used in future pay rounds. To provide a starting point, the 2002 pay scales have been revised and uprated. For further details and to view the payscales please see the attached document. It does not show how salaries will be adjusted in this years pay round.
3.1 Payment of the individual performance bonus will be based on the actual appraisal mark for the year ending 31 March 2003 and the substantive grade to which that appraisal relates. If an officer has been in the same grade/business during the reporting cycle but has more than one performance appraisal review (PAR) mark recorded, the PAR marking recorded for the performance year ending on 31 March 2003 will be used for bonus purposes
3.2 For those staff who have had a gap of less than 91 days in their performance year because of a change of grade or business, payment will be made for the full performance period on the mark and grade recorded prior to the date of change. Staff who change business units – bonus payment will be calculated on a pro-rata basis using the PAR mark held for each business unit.
3.3 Staff returning from career breaks, long-term sick absence (either at nil pay or sick pay pension rate) or special leave with out pay will not receive a performance bonus if they do not have an appraisal marking on the system for the performance year ending 31 March 2003.
3.4 Staff who change grade during the reporting cycle and have two PAR marks recorded will have the performance bonus calculated to reflect the period in each grade on a pro-rata basis using both PAR marks.
3.5 Permanent, casual, and temporary staff who have an appraisal marking for the performance period ending 31 March 2003 but were not in service for the whole of the reporting period will receive the performance bonus on a pro rata basis to reflect the number of days in service.
3.6 If there has been any break in service, other than a weekend and/or public/privilege holiday, performance bonus will be paid on a pro-rata basis from the first day of the latest period of service.
3.7 If there is a gap in PAR history no marking will be deemed. Performance bonus will only be paid once an appropriate appraisal box marking has been received.
3.8 Part time staff will receive a pro rata lump sum payment based on contractual hours during the reporting period.
3.9 The performance bonus payment will:
4.1 Following the specialist pay review completed early in 2003, it has been decided to make changes to some of the specialist pay scales. The changes are detailed on the table below:
| Accountants |
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| Communications |
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| Psychologists |
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| Audit |
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| Medical officer |
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| Legal |
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| Analysts |
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| PSD - IT |
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4.2 The standard progression payment will be paid in two stages.
4.3 The pay award for staff currently paid as specialists will be calculated as follows:
Stage One (1 July 2003):
Stage Two (1 April 2004):
4.4 Recruitment and retention addition (RRA) will be consolidated to qualifying staff in post on the pay award implementation date, with effect from 1 April 2004. The RRA will be consolidated in full at its current amount for the following groups:
4.5 Where staff are in post and are serving a formal qualifying period for either the award of an RRA or for the increase of a staged RRA, any award or further increase due will be consolidated in full from the date of entitlement.
4.6 Any specialist staff who are in receipt of a personal rate RRA which was approved on an individual skills/retention basis will continue to receive their RRA under the normal rules. It will not be consolidated into base pay and will still be subject to the normal annual review process.
4.7 With effect from 1 April 2004 the arrangements for procurement staff who qualify for an RRA will remain the same however the procurement RRA will be converted from a renewable RRA into a specific procurement allowance. Existing entitlement rules will be transferred to the new allowance.
4.8 Where an individual has their RRA consolidated the following process will be applied:
Step one - apply 2003 pay award stage 1
Step two – apply 2003 pay award stage 2
Step three – consolidate RRA within following principles:
4.9 Staff currently paid as generalists who will be moving to the new specialist pay scales will have their salary calculated as follows:
Stage one (1 July 2003):
Stage two (1 April 2004):
5.1 The following pay advance policies have been harmonised:
5.2 Unless otherwise stated, these will be effective from the 5 April 2004.
5.3 All staff who meet the appropriate qualifying conditions, can apply for an advance to purchase a bicycle and any relevant safety equipment to travel between their home and office.
5.4 The amount of the advance has an overall limit of £1,000 and line managers must:
5.5 The advance is normally recovered over 12 months, with the option to repay over less time. The first recovery is made with payment of the advance.
5.6 Staff may receive a further advance to replace a bicycle only if they have repaid their previous advance.
5.7 Any outstanding balance will become immediately repayable on leaving the department.
5.8 All staff who meet the appropriate qualifying conditions, can apply for an advance to purchase a season ticket for travel between their home and office.
5.9 The amount of the advance is limited to the cost of the season ticket and is recovered over the period of the season ticket i.e. a quarterly ticket advance would be recovered over 3 months. The first recovery is made with payment of the advance.
5.10 Staff will be able to receive a further advance to replace a season ticket surrendered voluntarily before the expiry date where a change in personal/business circumstances justifies this. Any outstanding balance will become immediately repayable on leaving the department.
5.11 Mid-monthly advances will be available to all new entrants and for staff returning from a period of authorised unpaid leave.
5.12 New entrants can apply for an advance for a maximum of 6 months. The amount of advance will reduce proportionally each month as follows:
5.13 There is no overriding limit to the amount.
5.14 Staff returning from authorised unpaid leave of one month or more, can apply for an advance of up to 50% of their net monthly salary, with no overriding amount, for a maximum of 2 months.
5.15 To be eligible for a mid-monthly advance staff must not be in receipt of the religious festival/christmas advance.
5.16 Staff can apply for a holiday advance for a period of annual leave, including public/privilege and flexi-time leave. This provision includes payment of an advance to reserve forces going on special leave.
5.17 To be eligible for a holiday advance staff must not:
5.18 Staff will be able to apply for a maximum of 50% of their net monthly salary.
5.19 A holiday advance needs to have been fully recovered before a further application can be made.
5.20 The advance should be applied for in time for it to be paid with the salary in the month prior to that in which the leave starts. It will be recovered from the next salary payment.
5.21 Staff will be able to apply for up to 4 advances per year for religious festivals e.g. Christmas, Eid Ul Adha, Diwali, Hannukah (this list is not exhaustive.)
5.22 To be eligible for a religious festival advance staff must not be in receipt of:
5.23 Staff will be able to apply for up to 50% of net monthly salary.
5.24 The advance is paid mid-monthly and recovered from the net monthly salary paid at the end of the month.
6.1 With effect from 5 April 2004 the following travelling time (T/T) policies have been harmonised. These are:
6.2 Policy will define travelling time and official travel as:
6.3 Official travel is travel on official business it includes:
6.4 Official travel does not include:
6.5 If staff voluntarily return home rather than staying overnight for the intermediate period, they are paid for the excess travelling time as long as this is not more than the difference between:
6.6 Staff cannot be given time off in lieu for these intermediate journeys. They must claim the limited payment.
6.7 Staff cannot be paid travelling time for mid-weekend journeys. These journeys must be excluded from the claim.
6.8 If staff stay overnight at the new location and return home only for intervening weekends, they are not eligible for payment of travelling time for those weekend journeys. Only travelling time for the initial journey to and the final journey from the new location may be paid.
6.9 Travelling time policy will be aligned so that, all part-time staff can claim travelling time at the appropriate daily rate without first having to complete full time conditioned hours.
6.10 The payment of travelling time is to be aligned to the most beneficial rate for staff. Staff will be able to claim and be paid for travelling time amounting to 15 minutes, and thereafter in multiples of 15 minutes. Provisions will exist for any balance or where payment cannot be made to be added to flexi sheets.
6.11 Staff that have to make an additional home to office journey to attend work in the evening outside the normal opening hours of their office, then the time spent travelling can be claimed as travelling time. If staff attend work outside normal office hours and this links with work during normal office hours (i.e. staff did not return home between working their normal hours and the excess hours) then they cannot claim any travel time.
6.12 This will not replace the recall to duty allowance provisions for those staff that are eligible.
6.13 Staff will no longer be required to make a deduction for normal home to office travel when travelling on a non working day.
6.14 Travelling time is not payable during periods of detached duty at a stay away location, for travel home on intervening weekends, except on weekends incorporating a bank holiday.
6.15 Travelling time is payable for the first journey to the detached duty location and the final journey home when the period of detached duty has ended.
6.16 Staff that are transferred permanently at public expense to a new location that justifies moving home, can only claim travel time for the initial journey to their new location.
6.17 Legacy child support agency (CSA) policy allows for staff that have been compulsory transferred because their office has closed or, CSA work has been moved from the office to claim travelling time for three years. This provision will be abolished from the 5th April 2004.
6.18 CSA staff who have been compulsory transferred, or have a compulsory transfer arranged prior to the 5th April 2004 as a result of their office having closed or the CSA work been moved from the office will retain a reserved right to claim travelling time for up to three years from their date of transfer.
6.19 If an officer voluntarily permanently transfers from CSA then eligibility to claim the additional travelling time ceases.
7.1 From 5 April 2004 there are a number of changes to the RRA policy currently contained in DWP HR circular 23/02 these are as follows:
7.2 Where it is necessary to recruit and retain staff of a suitable calibre to work non-standard hours, the facility to offer additional payments (ie RRAs) should be available subject to meeting the relevant RRA criteria.
8.1 From 5 April 2004 a new corporate DWP language allowance will be introduced for staff in administrative bands/grades and executive band C/EO. Eligible staff will be required to use foreign language or British sign language in the course of their duties.
8.2 All the current allowances/RRAs will be abolished and replaced by the new allowance. There will be no requirement to allow staff to retain the abolished allowances on a reserved rights basis except for 4 staff currently in receipt of foreign language allowance of £691, as the rate is more beneficial. Payment for the new allowance will end when staff no longer meet the eligibility criteria.
8.3 Staff in administrative bands/grades and executive band C/EO may be considered for the DWP language allowance if they use foreign languages other than those indigenous to the British Isles for at least 25% of their time in the course of their normal duties, or, use British sign language regularly in the normal course of their duties. It is for managers to decide what constitutes regular use.
8.4 Full rate language allowance is £500 pa paid pro rata to part time staff.
8.5 Where managers decide their business requires them to keep a retainer list of staff to provide cover for leave etc they may select staff to place on the list. There is no automatic right for any staff member to be placed on the list and there is no minimum usage of their time.
8.6 Reserve rate language allowance is £250 pa paid pro rata to part time staff.