1. James Lazou Research Officer
Local Authorities NISC
Understanding the Pay Offer
James Lazou
Research Officer

2. Joint Union NJC claim
The deletion of NJC Spinal Column Point (SCP) 6-9 to reach the Foundation Living Wage now £8.75 (UK) and £10.20 (London)
A 5% increase on all NJC pay points
Progress on reform of the spine

3. Main arguments Staff have endured 8 years of pay cuts
Workers are thousands of pounds worse off due to the Government pay cap
Inflation is set to remain over 3% for the next few years
Local authorities are a low paying sector
Low pay in local authorities is deepening the gender pay gap
Pay rise is good for the economy

4. Real terms loss of earnings
Between April 2010 and April 2017 (loss of 21%)
SCP 6:
50p per hour worse off
£965 worse off per year
Has cumulatively lost £11,961 pounds in total
SCP 49:
£4.88 per hour worse off
£9,424 worse off per year
Has cumulatively lost £53,452 pounds in total
SCP 21 :
£2.25 per hour worse off
£4,332 worse off per year
Has cumulatively lost £24,568 pounds in total

5. The offer: Year 1 From 1 April 2018
Pay rise
Equivalent to
SCP 6
£1,380
9.191%
SCP 7
9.130%
SCP 8
9.052%
SCP 9
8.976%
SCP 10
£1,250
8.006%
SCP 11
£1,200
7.592%
SCP 12
£1,050
6.512%
SCP 13
£900
5.458%
SCP 14
5.363%
SCP 15
5.272%
SCP 16
5.167%
SCP 17
5.064%
SCP 18
£800
4.427%
SCP 19
£700
3.734%
SCPs 20 and above
2.0%

6. The offer: Year 2 From 1 April 2019
Introducing a new spine with the following changes:
A bottom rate of £9.00 per hour (£17,364) new SCP1
‘Pairing off’ old SCPs 6-17 to create new SCPs 1-6
Equal steps of 2.0% between new SCPs 1 to 22
Introduce new SCPs 10, 13, 16, 18 and 21 to which no old SCPs would assimilate.
New pay points will change the current number of pay points in a grade. Employers call for joint working
New SCPs 23 and above 2.0%

8. Issues to discuss: Political context
The offer has not been funded by the Treasury and no new money was announced in the Autumn budget
Council elections are coming up in May
The Labour group pushed this offer through against the Conservative leadership of the LGA
So far other public sector staff have not received higher offers than those proposed here

9. Inflation is forecast to rise by nearly 18% by 2021
Average City Economists Forecasts  
Latest inflation forecasts (RPI) for April 2018 are 3.6%
Latest inflation forecasts (RPI) for April 2019 are 3.3%
Source: IDR Pay Climate, December 2017
Source: HM Treasury Forecasts for the UK Economy, February 2017

10. FTE per 2017/18 SPC Over 2 years Real terms pay cut
50% of Council’s already pay the Living Wage
Many do this as an additional supplement
Real terms pay rise
2017: Current below the LW
2018: Below the LW April
2019: Lowest pay point £9 (projected LW)

11. For most it is still a pay cut in real terms

12. What happens to the pay systems?
Will employers use the new spine to claw back savings through reviewing pay and grading structures?
Some grades will now have increased numbers of pay points. What will this mean for progression?
Will other terms and conditions be targeted?

13. Discussion