Public and Commercial Services Union

The DWP Trade Union Pay Offer 2010

1. Coverage and Settlement Date

1.1 This is a 1 year pay offer which covers the settlement date of 1 July 2010.

2. Entitlement to the Pay Award

2.1 Entitlement to the pay award will be dependant upon two things. Firstly, an individual must be employed by the Department for Work and Pensions on both the 30 June and 1 July 2010; and secondly must not have been marked as unsatisfactory for the performance year ending March 2010.

2.2 Eligibility for 2010 Pay Award

2.3 As part of the Emergency Budget on 22 June, a pay freeze was announced for all public sector workers earning over £21,000 Full Time Equivalent (FTE).

2.4 Employees earning £21,000 FTE or less who meet the entitlement criteria will be eligible for a pay increase.

2.5 Where an employee is in receipt of a specified allowance which takes their total salary above £21,000 FTE they will not be eligible for a pay increase.

2.6 The specified allowances are Recruitment and Retention Addition, Private Secretary Allowance, Regular Shift Allowance, Procurement Allowance, Language Allowance, Proficiency Typing and Audio Allowances and Supplements (reserved rights).

2.7 Mark Time Pay (MTP) is not included in the calculation of earnings, but will be eroded by any consolidated pay award in accordance with current policy.

3. Details of the pay award

The 2010 pay award covers;

• A fixed value consolidated pay increase per grade and grade equivalent for employees earning £21,000 FTE or less;
• End of Year Performance Awards for all employees with the exception of unsatisfactory performers; and
• Specialist pay arrangements.

4. Cost of the Offer

4.1 The value of the offer is:

• £38m in consolidated pay increases

• £55m in non-consolidated End of Year Performance Awards

4.2 In total the offer provides 1.3% in new money and 1.9% in non-consolidated individual bonus payments.

5. Key Details

5.1 Effective from 1 July 2010:

• Increases to AA minima ranging from £870 to £1,060
• Flat rate increases and increases to maxima for those earning £21,000 or less ranging from £400 to £540 (with the exception of a few employees on pay rates above DWP maxima).
• End of Year Performance Awards worth £55m
• Introduction of a taper mechanism to prevent ‘leapfrogging’

6. Changes to Payscale Minima

6.1 Increases to the minima will be made to all existing band minima where the current minima rate is below £21,000 FTE.

6.2 AA and equivalent minimum uplifted by more than the flat rate consolidated pay increase.

6.3 Payscales are included at Appendix 1.

7. Changes to Payscale Maxima

7.1 Increases to the maxima will be made to all existing band maxima where the current maxima rate is below £21,000 FTE.

7.2 All maxes on or below £21,000 will be uplifted by the flat rate consolidated pay increase.

7.3 There will be no use of non-consolidated pay for top ups to any employees who have reached the maximum of their payscale.

8. Flat Rate Consolidated Pay Increase

8.1 Flat rate consolidated pay increases will be made to employees who are entitled to the pay award and who meet the eligibility criteria for the 2010 pay award.

8.2 The amount of the flat rate increase will be calculated for each grade equivalent.

8.3 The flat rate increase will be the same for all employees within that payscale regardless of their position on the payscale.

9 Taper

9.1 To prevent leapfrogging, a taper is being introduced. Leapfrogging is where someone earning over £21,000 FTE could be overtaken by someone earning under £21,000 FTE.

9.2 The taper ensures that an employee earning £21,000 FTE or less cannot ‘leapfrog’ a colleague earning more than £21,000 FTE.

9.3 The taper will come into effect for employees earning between £21,000 FTE and the sum of £21,000 FTE plus the fixed value increase for their payscale.

9.4 The amount they will receive is the fixed value increase for their payscale, less the amount over £21,000 FTE.

For example:

Full time EO/Band C National payscale employee earning over £21,000 FTE. Taper applied.
Salary @ 30/06/10 = £21,200
Fixed value increase for payscale £540
Increase to be paid £540 - £200 = £340
Salary @ 1/7/10 = £21,540

Whereas someone earning less than £21,000;

Full time EO/Band C National payscale employee earning £21,000 FTE or less.
Salary @ 30/06/10 = £20,990
Fixed value increase for payscale £540
Increase to be paid £540
Salary @ 1/7/10 = £21,530

10. Part-time Employees

10.1 Where an employee works less than full time conditioned hours their increased salary will be adjusted to reflect the hours that they are contracted to work.

10.2 The pay award will first be applied to the equivalent full time salary and then the new rate of salary will be pro-rated to account for the average number of weekly hours the employee is contracted to work.

11. Mark Time Pay

11.1 Mark time pay (MTP) will not be included in the calculation of pay award eligibility.

11.2 Mark time pay will be eroded by consolidated pay increases from 1 July.

For example:

Band B/AO Outer London

Salary @ 30/6/10 = £20,300
MTP = £1,200
Total @ 30/6/10 = £20,300 + £1,200 = £21,500
Fixed value increase = £490
£20,300 + £490 = £20,790 (Salary @ 30/6/10) + (Fixed Value Increase)
Salary due @ 1/7/10 = £20,790 + £710 MTP = £21,500 (MTP eroded by increase in base salary)

Band C/EO National

Salary @ 30/6/10 = £20,800
MTP = £500
Total @ 30/6/10 = £20,800 + £500 = £21,300
Fixed value increase = £540
£20,800 + £540 = £21,340 (Salary @ 30/6/10) + (Fixed Value Increase)
Salary due @ 1/7/10 = £21,340 (MTP fully eroded by increase in base salary)

12. Treatment of Employees Above the Max

12.1 Where an employee’s salary on 30 June 2010 is on or below £21,000 FTE but is above the maximum of their DWP payscale they will receive the most beneficial of;

• The balance up to the new DWP max; or
• A £250 consolidated increase.

13 Unsatisfactory Performers

13.1 Employees who are marked unsatisfactory for the relevant performance year (i.e. the performance year that immediately precedes the settlement date) are not eligible for that year’s pay award. Their salary will remain at the existing level. This means that they may remain below the new payscale minimum. Checks will be put in place to ensure that they do not fall below national minimum wage although we do not envisage that this situation is likely to arise.

13.2 Should an employee’s performance subsequently improve then they may become eligible for the following year’s pay award, providing the unsatisfactory marking has been removed and they receive a performance rating through People Performance. Where an employee’s salary is below the previous year’s scale minimum, it will first be rolled up to the scale minimum that applies at 30 June and then any payment applicable at 1 July will be applied.

14 End of Year Performance Award

14.1 Employees must be entitled to the DWP Main Pay Award 2010 and they must also be employed on 31 March 2010 to qualify for an end of year performance award.

14.2 Employees will receive an end of year performance award in recognition of their individual contribution if they are assessed as ‘Wholly Exceptional’ or ‘Consistently Good’ under People Performance. Unsatisfactory performers will not receive an end of year performance award.

14.3 Employees will receive the End of Year Performance Award appropriate to their pay band/grade equivalents

14.4 End of Year Performance Award Amounts.

Grade Wholly Exceptional Consistently Good
A/AA £610 £305
B/AO £725 £365
C/EO £1,015 £510
D/HEO £1,255 £630
E/SEO £1,555 £780
F/G7 £2,235 £1,120
G/G6 £2,835 £1,420

14.5 End of Year Performance Award will be:
• determined on the basis of the performance rating achieved for the relevant performance year i.e. end of year performance award based on the People Performance level for 2009/10, will be paid as part of pay 2010.
• paid at the level appropriate to the pay band/grade in which the employee has been assessed, unless otherwise stated (i.e. TDA to SCS)(see paragraph 16 – Movement into the Senior Civil Service);
• paid as a non-consolidated, non-pensionable, non-superannuable lump sum; and
• subject to tax and National Insurance.

14.6 In the following circumstances the end of year performance award will be pro-rated to reflect the number of days in service and/ or working pattern;
• where the employee has not been in post for the whole of the reporting year 01/04/09 to 31/03/10.
• where the employee has not worked full time for the whole of the performance year.
• Where the employee is a part time or part year worker

14.7 For this year we are changing the pay treatment for those individuals who have less than 60 days performance and therefore do not have a performance level, but who come under one of the ‘exception’ reasons. This is because it is the first year of People Performance and there is no direct read across to the previous performance system.

14.8 As a rule, employees who do not have 60 days performance will not have had their performance assessed and will not be entitled to an end of year performance award. Exceptions to this are where:
• the reason is due to maternity, paternity, adoption or disability related sickness absence.
• no performance rating is due because of the employee’s surplus status but the employee has more than 60 days service during the relevant performance year.
For this transitional year they will be deemed as ‘Consistently Good’.

14.9 Graduate Fast Streamers who are assessed against Band E/SEO competencies from the third year of the programme will receive the end of year performance award appropriate for Band E/SEO.

15 Fast Stream Payscale

15.1 Changes to HEO(D), Economic Assistant, & Assistant Statistician Payscale Minimum

15.2 The minimum of the Graduate Fast Stream payscale has been harmonised across government. The HEO (D), Economic Assistant and Assistant Statistician band minimum will reduce from £28,250 to £27,000. Existing employees appointed prior to 1 July 2010 within this pay band will not be affected.

15.3 New entrants to the HEO (D) schemes joining after the 1 July 2010 will go onto the new minimum.

15.4 To ensure any new entrants brought in between 1 July 2010 and the implementation date of this pay award were not overpaid, a ‘safe rate’ of £27,000 was used from 1 July 2010.

15.5 For in service candidates the new minima will be used as the basis for Starting Pay on Promotion and re-grading calculations.

15.6 Guaranteed Review Rate

15.7 It has been agreed in principle, to introduce a guaranteed minimum salary after 2 years on the scheme so that salary reflects the higher level of work being undertaken.

16 Movement into the Senior Civil Service (SCS)

16.1 Employees who permanently change band / grade into the SCS during the reporting year ending 31 March 2010 are covered by the SCS award. The DWP junior pay award does not apply.

16.2 Employees who permanently move into the SCS after 31 March 2010 but before 1 July 2010 will be paid an End of Year Performance Award by the SCS relating to the performance marking earned in the band / grade in which the employee has been assessed.

16.3 Employees on TDA to the SCS for less than six months of the performance year will be assessed in the substantive Band/Grade. Employees on TDA to the SCS for the majority of the year (more than 183 days) will be assessed in line with SCS pay and performance arrangements, unless they are no longer on TDA/TP on 31 March 2010. In this case employees will be assessed in the substantive Band/Grade. Bonus payments relate to the level of assessment and Band/Grade employees are assessed in.

17 New Entrants on or after 1 July 2010

17.1 New entrants joining on or after 1 July 2010 will not be eligible for the pay award; except that any individuals who are on the previous year’s scale minimum (i.e. because the pay award had not yet been implemented when they started) will be uplifted to the new scale minimum if it has increased.

17.2 Any individuals employed on Flexible Starting Pay who take up post before the pay award is implemented will see no change in salary if their pay is higher than the new scale minimum. The only exception is if their contract specifies a particular point on the payscale and pay has to be adjusted to preserve that.

18 Transfers / Loans into DWP

18.1 Any employee who transfers either permanently or on loan, into DWP on or after 2 April 2010 from another government department, will not have automatic entitlement to the DWP pay increase from 1 July 2010.

18.2 In these circumstances, DWP payroll will contact the previous department to establish if the employee is entitled to the DWP pay award or the exporting department’s pay award.

18.3 The pay award will be calculated and implemented separately from the main pay award but will be effective from 1 July 2010.

19. Unpaid Non-Attendance

19.1 Employees that are on carers leave, long-term sick absence, unauthorised absence or special leave without pay including maternity, paternity and adoption leave on 1 July 2010 will qualify for the pay award subject to their having a satisfactory performance level. Employees marked unsatisfactory will remain on the salary they received at the time the absence began.

19.2 Employees will be progressed through the pay award to the point on their payscale as if they had remained at work, but will receive no consolidated payment.

20 Allowances

20.1 There will be no change to the rate at which allowances are paid; they are to be frozen at 2009 rates for this pay award. However, those that are paid as a percentage of salary or an hourly rate will automatically increase as a result of any increase in salary.

20.2 The allowance rates are shown at Appendix 2.

21 Specialist Pay Arrangements

21.1 Legal Trainees

21.2 As Legal Trainee National rates are not more than £21,000 they will be increased.

21.3 Increases will ensure there will be an appropriate differential between the two rates.

21.4 Accountancy AAT Payment

21.5 To recognise the achievement of AAT membership a £250 payment will now be made to grades up to and including HEO who have been supported by DWP to study for the full AAT qualification and have subsequently become AAT members.

21.6 Employees supported to study for the full professional CCAB qualification (either locally supported or through the FMDS) who have received an award of £250 on becoming an AAT member will on completion of their CCAB receive an award of £750.

21.7 There is no change in the total lump sum awarded (£1,000) for completion of the full professional academic syllabus but this £1,000 payment will now be made in two parts to those who have become AAT members.

21.8 Harmonisation of Pay Treatment on Promotion

21.9 From January 2011 the calculation of all pay treatments on promotion or TDA will be harmonised. This means that from January 2011 all employees who are promoted will receive the better of;

• New band minimum; or
• 10% of substantive salary, capped to new band maximum.

This ensures that the same principles are applied to permanent promotion and TDA.

22. Obsolete Grades

22.1 The following grades will be removed from RM as they are no longer required. There are no employees on these payscales.

22.2 Senior Assistant Statistician & Senior Assistant Economist: All current and future Government Economic Service (GES) and Government Statistical Service (GSS) Fast Stream recruitment will be for the Assistant Statistician (AS) and Assistant Economist (AE) grades.

22.3 Cleaner & Senior Cleaner: There are no employees in these grades. There is no current or future business intention to recruit into these grades.

Appendix 1: Worksheet 2010 DWP pay offer

Appendix 2

Allowance Type	1 July 2010
Central Emergency Officer Addition (per rostered period) Weekdays Priv/Sat/Sun/Public/Bank Holiday	£16.51 £78.64
Extended Working Hours Allowance Paid as percentage of hourly overtime rate	50%
Language Allowance (rate shown per annum) Full Rate Reserve Rate	£730 £310
Night Duty Addition Paid as a percentage of base pay up to the salary ceiling shown	£39,337
On Call Addition (rate shown per rostered period) Weekdays – 12 hours or more (paid pro rata for periods less than 12 hours) Priv/Sat/Sun/Public/Bank Holiday – 24 hours (paid pro rata for periods less than 24 hours)	£11.31 £33.68
Private Secretary Allowance (rate shown per annum) Band G/Grade 6 Band F/Grade 7 Band E/SEO Band D/HEO Band C/EO Band B/AO	£6,320 £6,320 £3,910 £3,910 £3,910 £3,200
Procurement Allowance (rate shown per annum) Diploma Membership CIPS MCIPS	£1,045 £1,745 £4,645
Recruitment And Retention Addition Annual limit of total RRA payments per person	£7,000
Regular Shift Allowance Paid as a percentage of basic pay up to the salary ceiling shown	£39,337
Responsibility Allowance (rate shown per annum) Band G/Grade 6 Band F/Grade 7 Band E/SEO Band D/HEO Band C/EO	£2,550 £2,000 £1,500 £1,200 £1,000
Temporary Duties Allowance Paid as the better of either the higher pay band minimum or a percentage of basic pay	10%