The People, Performance and Development Committee met to discuss staff matters relating to local government reorganisation, equality, diversity and inclusion, agency and interim staff, and settlement agreements. The committee agreed to endorse the updated Officer Code of Conduct and recommend its approval to the Council. They also requested to see unidentifiable data from staff sentiment surveys in future meetings.

Local Government Reorganisation (LGR) and Staff Transfer

The committee discussed the ongoing local government reorganisation (LGR) and its implications for staff, particularly concerning the transfer of employees to new authorities under the TUPE¹ legislation. A key concern was how staff would be allocated to the new unitary authorities, especially in a scenario with two unitary models. It was clarified that the primary factor would be ensuring a balance of skills and experience across the new organisations. Other considerations include:

• If people are in a location dependent role, they would most likely transfer to the new organisation that covers the geography of where they will transfer to the new organisation.
• Staff home post codes will be used as a starting point to create a list of which organisations staff will transfer to.

It was acknowledged that after the transfer, there would likely be a period where staff in the new authorities would have different terms and conditions of employment, pay rates, and annual leave entitlements, protected under TUPE.

Councillor Paul Follows, Liberal Democrats Group Leader, asked about the status of chief executives in the TUPE process. It was clarified that the structural changes order from the government, expected in the autumn, would determine the position of chief executives and the top three tiers of the organisation.

Workforce Equality, Diversity and Inclusion (EDI)

The committee received an update on the progress against the workforce elements of the 2024/25 Equality, Diversity and Inclusion (EDI) action plan, and the proposed actions for 2025/26.

Bella Smith, Head of Insights, Systems & Governance, presented the Annual Workforce Report 2024/25, which highlighted changes in workforce demographics. Key points from the report included:

• An increase in the number of people sharing they have a disability.
• A slight decline in people declaring they are from ethnic minority backgrounds.
• Low voluntary turnover, which impacts the ability to attract a more diverse workforce.

Councillor Follows requested to see the data from staff sentiment surveys, to understand the themes emerging from staff feedback.

The committee discussed the challenges in obtaining accurate data on ethnicity and disability, as many staff members choose not to disclose this information. There was also discussion of the council's legal obligation to report on and publish information about the demographic make-up of our workforce, and to publish annual reports on our Gender Pay Gap.

The committee also discussed the EDI priorities for 2025/26, which include:

• A review of staff networks.
• Improving workforce EDI data recorded on My Surrey.
• In-house delivery of EDI training modules.
• Sustainable ways of working for workplace adjustments.
• Development of Wellbeing and Inclusion Champions.
• Improving the experience of staff who have joined from overseas and may be on restricted visas.
• A reverse mentoring programme.
• A review of policies and guidance in response to changes in legislation.

Agency and Interim Spend

The committee reviewed the Agency and Interim Spend for the 2024/25 financial year. The report provided a detailed analysis of the agency and interim spend, noting a reduction of over £4 million compared to 2023/24, with a total spend of £32,592,297.

The report highlighted that the Children, Families and Lifelong Learning directorate had the highest agency spend, mainly due to the requirement to cover Qualified Social Worker and other specialised roles. However, there has been a marked reduction in the spend and reliance on agency workers, due to the stabilisation programme monitored through the Recruitment, Retention and Culture Board.

The committee noted that the organisational KPI for off-payroll spend is 7% of the organisation's total pay bill, with the current rate at 7.3%.

Annual Statement of Settlement Agreement Costs

The committee reviewed the Annual Statement of Settlement Agreement Costs. The report provided information about the cost of settlement agreements that have taken place during the last complete financial year.

The council paid termination costs (known as ex-gratia payments) in 29 cases totalling £425,821 in 2024/2025. This is a reduction compared to 2023/24 when the council paid £551,967 in termination costs for 24 cases.

The ex-gratia payments made in 2024/25 ranged from £20 to £75,000. The average payment was £14,683 and the median was £12,000.

Officer Code of Conduct

The committee endorsed the updated Officer Code of Conduct and recommended its approval to the Council. The updated code included a reviewed Section 4, a new section in Section 7 on the duty of candour², and an added reference in Section 9.3 to the Ending Bullying and Harassment Policy.