Pay and Agenda for Change reform – March 2018
Overview 2 • The pay framework agreement covers pay rises and reforms to Agenda for Change • The proposal is fully funded by the Treasury – this is new money and not coming out of existing NHS Trust budgets • If accepted by members, it’s a three year deal from 1 April 2018 – 31 March 2021 • The RCM board is recommending acceptance of this proposal as the best that can be achieved through negotiation • The RCM member consultation will be 1 st May-31 st May 2018 – This will be an online consultation that will be emailed to members • For members in Wales, Scotland and Northern Ireland agreement would mean that budgets go through the Barnett Formula, to allow unions, devolved governments and employers to hold discussions on the Framework The Royal College of Midwives | www.rcm.org.uk
Current staff 3 • Pay award for the top of each pay band (52% of staff) 1 April 2018 – 3% 1 April 2019 – 1.7% (plus 1.1% cash lump sum) 1 April 2020 – 1.7% • Total over 3 years 6.5% plus 1.1% cash lump sum • Slightly lower percentages for bands 8d and 9 as increases are capped at the top of 8d (and a cash lump sum on 1 April 2019 of around £800) • Percentage increases are consolidated into basic pay. Cash lump sum isn’t. • These percentages are also applied to High Cost Area Supplements. The Royal College of Midwives | www.rcm.org.uk
Current staff 4 • Currently 48% of staff are not at top of their pay band • Pay progression will change, there will be fewer increments as overlaps are removed from the bottom of the band in 2018/19 and further points removed in 2019/20. They will now be called ‘pay points’ • The interval will no longer be yearly but progression to the top for most staff will be quicker. The next three years is a transitional period and current staff will see a yearly increase • By 2021 the vast majority of current staff will reach top of their band (remainder within following two years) • No change to current incremental dates • Agenda for Change progression framework implementation by 1 April 2019 • Expectation and funding based on staff progressing as normal The Royal College of Midwives | www.rcm.org.uk
New pay points 5 The Royal College of Midwives | www.rcm.org.uk
Attracting new staff 6 • Increased starting salaries and promotion pay for all pay bands combined with the announcement of 3000 more midwives will start to address shortages and workload issues • Minimum starting salary in NHS up from £15,404 to £17,460 from 1 April 2018. Above the current Living Wage Foundation rate, and an immediate increase for over 100,000 low paid staff • Band 1 closed to new entrants from 1 December 2018, and gone completely by 31 March 2021 The Royal College of Midwives | www.rcm.org.uk
Examples – MSW Band 2 (point 3) 7 Current pay - £15,671 The Royal College of Midwives | www.rcm.org.uk
Examples – Midwife Band 7 (point 34) 8 Current pay - £41,787 The Royal College of Midwives | www.rcm.org.uk
Examples – Midwife Band 6 (point 24) 9 Current pay - £29,626 6% of staff don’t reach top of band by end of year 3 – this is one such point, and staff on this point get to top in year 4 The Royal College of Midwives | www.rcm.org.uk
Other changes 10 • No change to annual leave • Work to ‘improve levels of attendance through a focus on staff health and wellbeing at a local and national level ’ a goal of the RCM’s Caring for You Campaign • Collective agreement on bank working to be considered, including looking at if there are ‘cost -effective incentives to encourage staff to offer their own time to internal staff banks to increase capacity ’ • National framework for buying and selling annual leave • Employers will work with trade unions to introduce local mechanisms to guarantee access to annual leave and time off in lieu (TOIL) provisions set out in the NHS Terms and Conditions of Service Handbook The Royal College of Midwives | www.rcm.org.uk
Unsocial Hours – Bands 1-3 11 • The employers wanted to harmonise all unsocial hours, which would have dramatically cut the rates for bands 1-3 • Instead the proposal is that the current cash value of a payment is frozen, then that amount is used to recalculate a new percentage (using the new salaries). It’s a smaller percentage of a bigger salary, but with the same amount of actual money • Instead of being based on the old pay points, eligibility for the payment of unsocial hours during sick leave would apply to salaries up to £18,160 The Royal College of Midwives | www.rcm.org.uk
Unsocial Hours – Bands 1-3 12 An example of how this would look in real terms for an MSW on band 2. Under the current system the unsocial hours elements of pay in band 2 is time plus 44% on Saturdays/nights and Time plus 88% on Sundays. On 2017/18 rates these are worth £4.09 and £8.17 per hour 17/18 18/19 19/20 20/21 Top of band 2 £18,157 £18,702 £19,020 £19,337 Plain time £9.29 £9.57 £9.73 £9.89 All time on Saturday (£9.29+£4.09) (£9.57+£4.09) (£9.73 + £4.09) (£9.89 + £4.09) (midnight to midnight) and any £13.38 £13.66 £13.82 £13.98 week day after 8.00pm and before 6.00am All time on Sundays (£9.29 + £8.17) (£9.57 + £8.17) (£9.73 + £8.17) (£9.89 + £8.17) and public holidays (midnight to £17.46 £17.74 £17.90 £18.06 midnight) The Royal College of Midwives | www.rcm.org.uk
Bands 8c, 8d and 9 13 • For these bands pay increases will be capped at the level of the top of 8c • An element of re-earnable pay will continue and be subject to annual appraisal – this was first introduced in 2013 • In the year after reaching the top of the band up to 5 or 10% of basic salary will become re-earnable • Salary will be able to be restored the following year subject to achieving agreed outcomes • Staff on the top two points of these bands on 31 March 2013 have reserved rights to the relevant point – this will be retained on a marked time basis The Royal College of Midwives | www.rcm.org.uk
What if the deal is rejected 14 • It is unlikely that the government will agree to re-open talks. • Instead they are likely to revert to the Pay Review Body (PRB) and ask it to recommend a one-year award. This is unlikely to be funded by extra money. • If the deal is rejected, the updating of Agenda for Change is also lost, and this may encourage local Trusts to develop local terms and conditions. The Royal College of Midwives | www.rcm.org.uk
Useful resources 15 • There is also a specially created joint union microsite www.nhspay.org with a pay calculator, FAQs and other resources. This ensures that all union members receive consistent information • www.nhsemployers.org/your-workforce/2018-contract-refresh employers website with a copy of Framework Agreement and more FAQs • Current A4C terms and Conditions http://www.nhsemployers.org/your- workforce/pay-and-reward/agenda-for-change/nhs-terms-and-conditions-of- service-handbook The Royal College of Midwives | www.rcm.org.uk
What to do now 16 • Ensure your email address is up to date with the RCM and you know your membership number • Look out for an email from the RCM on the 1 st May with a link to have your say through the online consultation The Royal College of Midwives | www.rcm.org.uk
For further information Website: www.rcm.org.uk Telephone: 0300 303 0444 Email: info@rcm.org.uk www.facebook.com/midwivesRCM @MidwivesRCM
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