Content

Decision
 
RESOLVED that
Cabinet:
 
1.1) noted the feedback from
consultation with staff on the pay award 2026/27 set out in
Appendix A (to be provided at the committee)
1.2) recommended to Council a
local pay award of 4% for all staff for 2026/27 as part of the Pay
Policy Statement 2026/27, subject to the outcome of consultation
with staff. 
 
Reasons for
decision
 
In order to maintain good employee relations
and secure the most effective recruitment and retention outcomes,
it was vital that we monitor pay movements nationally and in
neighbouring local authorities, both in Hertfordshire and in the
nearest London boroughs. As is the case across all local
authorities, Hertsmere continued to struggle with recruitment and
retention difficulties in the current candidate driven recruitment
market. For Hertsmere, the challenge was greater still because of
the proximity to several London boroughs.
 
The Council was not party to the NJC Agreement
on Pay and this therefore meant that last year Hertsmere were able
to settle our local pay award early and pay it from 1 April 2025.
The NJC award which was an increase of 3.2% to all staff, was not
settled until July 2025.
 
This year, provision had been made in the draft
revenue budget for 2026/27 to allow for a pay award of 3% with
effect from 1 April 2026. A standard percentage increase across all
grades was recommended. The recommendation ensured reasonable
headroom between the lowest paid worker (£13.56 per hour) and
the new national minimum wage of £12.71 from 1 April 2026. It
also ensures that our lowest paid workers are paid more than the UK
Real Living Wage which will be £13.45 from 1 April 2026. (The
Real Living Wage is a voluntary hourly pay rate, calculated
annually by the Living Wage Foundation to reflect the actual cost
of living).
 
Alternative Options
Considered
 
The risk of losing or not being able to attract
the necessary human resources to deliver the Council’s
service commitments and to progress towards the achievement of the
Council’s Vision and Corporate Plan was listed as a
‘serious’ risk in the Corporate Risk register with a
very likely chance of occurring. The measures set out in this
report were relevant to the mitigation of these risks.