NHS Terms and Conditions of Service 2018 Pay, transition and ESR
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1 NHS Terms and Conditions of Service 2018 Pay, transition and ESR 3 July 2018
2 Aim of today To understand: the new pay structure the transitional arrangements how ESR will interact with the new pay arrangements employer next steps.
3 Context Unfinished business from NHS terms and conditions service (TCS) 2004 implementation: Removal of overlaps between pay bands. Shorter timeframe to progress to the going rate for the job. Building on the NHS TCS 2013 changes linking pay progression to performance: Public sector pay policy to move away from automatic annual progression. 27 June - NHS Staff Council formally ratified the Framework Agreement, the government confirmed the additional funding in Parliament and the NHS Pay Review Report published endorsing the deal. 1 July - NHS TCS 2018 went live.
4 New pay structure Year 1 From 1 April 2018 The bottom overlap point is removed from each band, the exception being band 2 where the bottom three points have been removed. Band 1 moves to a spot salary and will close to new starters from 1 December A minimum pay rate for the of NHS of 17,460 (above the voluntary living wage) Those on the top pay points in bands 2-8c will receive an increase of three per cent. The top pay points in bands 8d and 9 have been increased by the monetary value of the increase to band 8c.
5 New pay structure Year 2 From 1 April 2019 Further points will be removed from the bottom of each band: Band 3 two points, band 4 one point, band 5 two points, band 6 &7 three points and bands 8a to 9 one point. The top pay point in band 2-8c will be increased by 1.7 per cent. The top pay points in bands 8d and 9 will be increased by the monetary value of the increase to band 8c. Staff employed on the top pay point in their pay band on 31 March 2018 shall receive a one off nonconsolidated cash lump sum in their April 2019 pay (see NHS TCS Annex 2). Those at the top of their pay band will receive: For bands 2 8c this will be 1.1 per cent of the value of the top pay point For staff on bands 8d and 9 the non-consolidated lump sum will be the same value as that given to band 8c.
6 New pay structure Year 3 From 1 April 2020 All overlapping points will have been removed Bands 2-4 and 8a-9 will loose further points and comprise of two points Bands 5-7 will loose a further point and will comprise of four points (three substantive and one transitional which will disappear on 01 April 2021) The top pay points in band 2-8c will be increased by 1.67 per cent. The top pay points in bands 8d and 9 will be increased by the monetary value of the increase to band 8c. As at 31 March 2021 staff on one of the following transitional pay points will move to the next pay point up on 1 April ,416 (Band 5) 33,779 (Band 6) 41,723 (Band 7)
7 Anomalies from structural reform 1. Transitional points in year three (2020/21) Applies to band 5 to 7 only 2. Consolidated payments for Bands 8a+ in year three (2020/21): Paid in year three (2020/21) and protected until employees are eligible to progress to the top pay point. Payments to be made monthly. 3. In Year 1 & 2, some overlapping points will have different values. Band Year 1 Year 2 Band 2/3 pt 7 & 8 pt 6 & 7 Band 3/4 pt 11 Band 4/5 pt 16 Band 5/6 pt 22 Band 6/7 pt 28 Band 7/8a pt 33 Band 8a/b pt 37 Band 8B/c pt 41 Band 8c/d pt 45 Band 8d/9 pt 49
8 The new pay scale table Previous Agenda for Change Pay Values 17/18 Band Existing Paypoint Numbers 2017/18 Band NHS Terms and Conditions of Service 2018 Pay Values Years of experience 2018/ / /21 Band ,404 Band 1 < 1 year 17,460 17,652 18,005 TOP 3 15, years 17,460 17,652 18,005 Band ,404 Band 2 < 1 year 17,460 17,652 18, , years 17,460 17,652 18, , years 17,460 17,652 19, , years 17,460 17,652 19, , years 17,460 17,652 19, , years 17,787 17,983 19,337 TOP 8 18, years 18,702 19,020 19,337 Band ,968 Band 3 < 1 year 17,787 18,813 19, , years 17,787 18,813 19, , years 18,429 18,813 21, , years 18,608 18,813 21, , years 19,122 19,332 21, , years 19,700 19,917 21,142 TOP 12 19, years 20,448 20,795 21,142 Band ,409 Band 4 < 1 year 20,150 21,089 21, , years 20,150 21,089 21, , years 20,859 21,089 21, , years 21,582 21,819 24, , years 22,238 22,482 24, , years 22,460 22,707 24,157 TOP 17 22, years 23,363 23,761 24,
9 How to read a pay journey Previous Agenda for Change Pay Values 17/18 Band Existing Paypoint Numbers 2017/18 Band NHS Terms and Conditions of Service 2018 Pay Values Years of experience 2018/ / /21 Band ,128 Band 5 < 1 year 23,023 24,214 24, , years 23,023 24,214 24, , years 23,951 24,214 26, , years 24,915 26,220 26, , years 25,934 26,220 27, , years 26,963 27,260 27, , years 28,050 28,358 30,615 TOP 23 28, years 29,608 30,112 30,615 Pay progression (Read vertically downwards) Pay progression (Read horizontally left to right) Annual award increases Individual pay journeys (diagonally to the bottom right)
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18 Exceptions
19 Pay Progression NHS Staff Council will be looking to finalise negotiations for the framework by December Pre-launch, including resources and engagement will begin in January. NHS TCS 2018 Handbook will be updated ahead of 1 April 2019 implementation. Existing staff, employed prior to 1 April 2019, will follow the transitional arrangements. New starters, employed on or after 1 April 2019, will follow the new pay progression arrangements.
20 Example: Band 2 Pay progression journey Example: Band 2 Number of years progression Entry 1 2 Band 2 Entry step-point 1. Ongoing regular appraisal discussions and appraisal takes place during this period 2. Manager informs staff. Line managers will receive notification prior to an individual s next pay-step date. The staff member and line manager will meet to review whether the standards have been met. A locally determined simple form, template or checklist should be used to support this process, which should be signed by the line manager and the member of staff. This will then be used as the basis for confirmation of movement to the top pay-step point
21 Example: Band 5 Pay progression journey
22 Example: Band 8C Pay progression journey Example: Band 8c Number of years progression Entry Band 8c Entry step point 1. Ongoing regular appraisal discussions and appraisal takes place during this period 2. Manager informs staff. Line managers will receive notification prior to an individual s next pay-step date. The staff member and line manager will meet to review whether the standards have been met. A locally determined simple form, template or checklist should be used to support this process, which should be signed by the line manager and the member of staff. This will then be used as the basis for confirmation of movement to the top pay-step point
23 Band One Closed to new starters from 1 December NHS Staff Council will support employers in two phases: Phase 1 - Preparing employers to close band 1 complete by December 2018 Phase 2 - Supporting employers to upskill employees complete by 31 March Re-profiling work focussing on job redesign of band 1 roles to band 2 roles. This will involve partnership working between employer and staff side colleagues. Consideration of employees who may need to remain in band 1 roles due to: Supported employment and capability Interaction with social system such as benefits.
24 Key dates DATE EVENT 1 April 2018 Date that basic pay is backdated to, retrospective pay for the period 1 April to 30 June inclusive in line with the 2018/19 pay award. Note: timing of when retrospective pay is paid will depend on local arrangements 1 July 2018 Staff paid new basic pay from July Terms and conditions changes (such as to unsocial hours enhancements, sickness absence etc) come in to force), see the Terms and Conditions of Service for full details. 1 September 2018 Changes for ambulance staff: New starters will be employed under Section 2 rather than Annex 5 Existing staff who change roles will switch to Section 2 from Annex 5 Existing staff not affected by a change of role will be offered a voluntary move to Section 2. 1 December 2018 Band 1 closed to new entrants. Work also starts on the upskilling of staff to band 2 roles (where appropriate) 1 April 2019 New pay progression framework becomes effective.
25 AfC Pay Award Implementation 2018
26 NHS TCS 2018 Revised Rates of Pay The Award requires changes to the way in which pay grades are structured within ESR Certain additional Pay Spine Points will be added to the XR and XN Pay Scales There will be changes to the Pay Grade Structure to take account of these additional points This will create new spine points for reporting purposes
27 NHS TCS 2018 Revised Rates of Pay Where a current grade step feeds 2 Pay Bands due to overlapping values, new grade steps will be created and the original grade step removed from the relevant Pay Band This only applies to steps that no longer overlap in value We cannot delete a grade step point from a Pay Grade until there are no assignments on that step point Need to be very careful when selecting grade step for any new starters/changes/increments Advisable to check that correct Pay Grade/Grade step combination being used currently in readiness
28 Pay Rates Point Band 1 Band 2 Band 3 Band 4 Band 5 Band 6 Band 7 Band 8 Band 9 Range A Range Range C Range D Grade step New Grade step B 2 17,460 17, ,460 17, , , ,460 17, ,787 17, ,702 18, , , ,700 20, ,448 20, , , , ,460 23, ,363 23, , , , ,963 28, ,050 28, ,608 29,
29 Pay Rates Point Band 1 Band 2 Band 3 Band 4 Band 5 Band 6 Band 7 Band 8 Band 9 Range Range A B Range C Range D Grade step New Grade step 24 30, , ,171 33, ,222 33, ,403 34, ,644 36, , , , ,034 42, ,041 42, , , ,798 49, ,969 49, , , ,515 59, ,964 59, , , * 68,256 70, * 71,243 70, , , * 80,606 84, * 85,333 84, , , * 97, * 102,
30 Revised Grade Steps Pay Grade Name NHS(XR03) Review Body Band 3 Step Point NHS(XR04) Review Body Band 4 Step Point NHS(XR05) Review Body Band 5 Step Point NHS(XR06) Review Body Band 6 Step Point NHS(XR07) Review Body Band 7 Step Point NHS(XR08) Review Body Band 8 Range A Step Point NHS(XR09) Review Body Band 8 Range B Step Point NHS(XR10) Review Body Band 8 Range C Step Point NHS(XR11) Review Body Band 8 Range D Step Point NHS(XR12) Review Body Band 9 Step Point NHS(XN03) Non Review Body Band 3 Step Point NHS(XN04)Non Review Body Band 4 Step Point NHS(XN05) Non Review Body Band 5 Step Point NHS(XN06)Non Review Body Band 6 Step Point NHS(XN07) Non Review Body Band 7 Step Point NHS(XN08) Non Review Body Band 8 Range A Step Point NHS(XN09) Non Review Body Band 8 Range B Step Point NHS(XN10) Non Review Body Band 8 Range C Step Point NHS(XN11) Non Review Body Band 8 Range D Step Point NHS(XN12) Non Review Body Band 9 Step Point
31 Summary of Changes to XR Payscales From To Pay Grade Grade Step Step Point Grade Step Step Point NHS(XR03) Review Body Band NHS(XR03) Review Body Band NHS(XR04) Review Body Band NHS(XR04) Review Body Band NHS(XR05) Review Body Band NHS(XR05) Review Body Band NHS(XR06) Review Body Band NHS(XR06) Review Body Band NHS(XR06) Review Body Band NHS(XR07) Review Body Band NHS(XR07) Review Body Band NHS(XR08) Review Body Band 8 Range A NHS(XR08) Review Body Band 8 Range A NHS(XR09) Review Body Band 8 Range B NHS(XR09) Review Body Band 8 Range B NHS(XR10) Review Body Band 8 Range C NHS(XR10) Review Body Band 8 Range C NHS(XR11) Review Body Band 8 Range D NHS(XR11) Review Body Band 8 Range D NHS(XR12) Review Body Band NHS(XR12) Review Body Band
32 Summary of Changes to XN Payscales From To Pay Grade Grade Step Step Point Grade Step Step Point NHS(XN03) Non Review Body Band NHS(XN03) Non Review Body Band NHS(XN04)Non Review Body Band NHS(XN04)Non Review Body Band NHS(XN05) Non Review Body Band NHS(XN05) Non Review Body Band NHS(XN06)Non Review Body Band NHS(XN06)Non Review Body Band NHS(XN06)Non Review Body Band NHS(XN07) Non Review Body Band NHS(XN07) Non Review Body Band NHS(XN08) Non Review Body Band 8 Range A NHS(XN08) Non Review Body Band 8 Range A NHS(XN09) Non Review Body Band 8 Range B NHS(XN09) Non Review Body Band 8 Range B NHS(XN10) Non Review Body Band 8 Range C NHS(XN10) Non Review Body Band 8 Range C NHS(XN11) Non Review Body Band 8 Range D NHS(XN11) Non Review Body Band 8 Range D NHS(XN12) Non Review Body Band NHS(XN12) Non Review Body Band
33 NHS TCS 2018 High Cost Area Supplement Element Name Allow Type/Meaning Percentage Existing Minimum Rate Existing Maximum Rate New Minimum Rate New Maximum Rate AfC High Cost Area NHS Fringe AfC High Cost Area NHS Outer London AfC High Cost Area NHS Inner London AfC High Cost Area NHS Qual Fringe AfC High Cost Area NHS Qual Outer London AfC High Cost Area NHS Qual Inner London
34 NHS Enhanced Multipliers Existing Rate Existing Rate Existing Rate Existing Rate Existing Rate New Rate New Rate New Rate New Rate New Rate Grade Saturday Enh Unsocial Enh Sunday Enh Bank Holiday Enh Rest Day Enh Saturday Enh Unsocial Enh Sunday Enh Bank Holiday Enh Rest Day Enh Enhanced Multipliers NHS XN Enhanced Multipliers NHS XN Enhanced Multipliers NHS XN Enhanced Multipliers NHS XR Enhanced Multipliers NHS XR Enhanced Multipliers NHS XR
35 NHS TCS 2018 OSP Average Will be amended to stop at Spine point 7 and will include new spine point 6.1 Payroll message changed to warn of move to spine point 8 and above Changes effective from 1 July 2018 If paying enhancements you need to advise managers to stop New starters to the NHS
36 Pay Grades XR XN Pay Grades with effect from 01/04/2018 Payscale Name Grade Step 1 2 NHS(XR01) Review Body Band 1 Step Point NHS(XN01)Non Review Body Band 1 Salary 17,460 17,460 Grade Step NHS(XR02) Review Body Band 2 Step Point NHS(XN02) Non Review Body Band 2 Salary 17,460 17,460 17,460 17,460 17,460 17,787 18,702 Grade Step NHS(XR03) Review Body Band 3 Step Point NHS(XN03) Non Review Body Band 3 Salary 17,787 17,787 18,429 18,608 19,122 19,700 20,448 Grade Step NHS(XR04) Review Body Band 4 Step Point NHS(XN04)Non Review Body Band 4 Salary 20,150 20,150 20,859 21,582 22,238 22,460 22,683
37 Pay Grades Continued Grade Step NHS(XR05) Review Body Band 5 Step Point NHS(XN05) Non Review Body Band 5 Salary 23,023 23,023 23,951 24,915 25,934 26,963 28,050 29,608 Grade Step NHS(XR06) Review Body Band 6 Step Point NHS(XN06)Non Review Body Band 6 Salary 28,050 28,050 29,177 30,070 31,121 32,171 33,222 34,403 36,644 Grade Step NHS(XR07) Review Body Band 7 Step Point NHS(XN07) Non Review Body Band 7 Salary 33,222 33,222 34,403 36,111 37,161 38,344 39,656 41,034 43,041 Grade Step NHS(XR08) Review Body Band 8 Range A Step Point NHS(XN08) Non Review Body Band 8 Range A Salary 42,414 42,414 44,121 45,827 47,798 49,969
38 Pay Grades Continued Grade Step NHS(XR09) Review Body Band 8 Range B Step Point NHS(XN09) Non Review Body Band 8 Range B Salary 49,242 49,242 51,737 54,625 57,515 59,964 Grade Step NHS(XR10) Review Body Band 8 Range C Step Point NHS(XN10) Non Review Body Band 8 Range C Salary 59,090 59,090 61,105 63,966 68,256 71,243 Grade Step NHS(XR11) Review Body Band 8 Range D Step Point NHS(XN11) Non Review Body Band 8 Range D Salary 70,206 70,206 73,132 76,707 80,606 85,333 Grade Step NHS(XR12) Review Body Band 9 Step Point NHS(XN12) Non Review Body Band 9 Salary 84,507 84,507 88,563 92,814 97, ,506
39 Not Paying NHS TCS 2018 Award? ESR holds a National rate you will need to build local pay grades and elements as appropriate
40 Ambulance Staff Need to enter the enhanced multipliers and not the percentage allowance for new joiners and changes from 1 st September 2018 Need to collect hours details to make payments Hours will need to be input onto ESR to make payments How will managers know who is on what mechanism for payment?
41 Plan for Update to ESR ESR will be updated for the new rates over the weekend commencing 6 th July (This is subject to successful build and testing completion) Arrears will be paid in August retro queues held from 6 th to the 24 th July Review of Protections, Maternity, Pension rates etc. to be done locally
42 Pay Progression Incremental pay progression for all pay points will be conditional upon individuals demonstrating that they have the requisite knowledge and skills/competencies for their role and that they have demonstrated the required level of performance and delivery: Requirement to Hold Appraisals Performance Related Increment Managing Payment/Retention of Increments New progression framework from April 2019 Work to be done to stop automatic increments in ESR Functionality available through ESR Self Service to support Appraisal process and incremental progression
43 Managing Pay Progression in ESR Key Features: Appraisal Creation and Management Review Performance and Delivery Complete Personal Development Plan Supported Training and Development - Integration with OLM Record and Manage Appraisal Outcome Download / Upload Appraisal Data Using Excel Specific templates for Appraisee/Appraiser Manage Objectives and Competencies Reporting Automates the deferral of incremental progression dependant on the outcome of the appraisal NHS TCS 2018 Increment Deferral role and notifications to alert role holders of required action
44 Any questions?
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