The Employment Committee of Hertfordshire Council met on Tuesday 27 January 2026 to discuss the council's pay policy for the upcoming financial year, review existing pay structures and principles, and consider the recruitment of a Programme Director for Local Government Reorganisation (LGR) transition. The committee also discussed an update on the workforce savings programme, including the potential introduction of a Mutually Accepted Resignation Scheme (MARS).

Pay Policy 2026-27

The committee was asked to recommend the proposed Pay Policy for April 2026 to March 2027 to the full council for approval. This policy is a statutory requirement under the Localism Act 2011 and aims to enhance transparency and accountability in local government pay. No fundamental changes have been made to the policy from previous years, with updates primarily consisting of revised figures. The policy outlines the council's approach to recruitment, pay reviews, and managing leavers, and also addresses pay ratios and gender pay gap information. The full council is scheduled to approve the policy on 17 February 2026.

2025 Pay Review – Hertfordshire Pay Principles & Pay Structure

A review of the council's pay principles and salary structures for employees on National Joint Council (NJC) terms and conditions was presented. The review, conducted in line with a three-yearly cycle established in 2022, found that the current pay structure, particularly at Pay Point 3 of each level, generally meets or exceeds the market median. Consequently, no significant changes to the structure were recommended. The Market Unsocial Hours Payment (MUSHA) was also reviewed and recommended to be retained in its current format pending further review.

2025 Pay Review – Organisational Leadership

This report focused on the pay review for the Organisational Leadership Job Family (Levels 15-21). The review indicated that while most levels meet or exceed the market median, Pay Point 3 in Levels 18 and 21 were found to be below the median. A recommendation was made to adjust the three-point pay range for four roles at Level 18 from Pay Point 1-3 to Pay Point 2-4. This change, effective from 1 April 2026, is estimated to cost approximately £24,000 per annum once fully implemented, but will not incur immediate costs. The report also provided an update on Coroners' pay, noting the cessation of the national negotiating body and the council's move towards local management of these roles.

Recruitment Programme Director – LGR Transition

The committee was asked to agree to the creation of the host Programme Director role for the LGR transition, endorse the proposed recruitment approach, and delegate authority to the Chief Executive to take the necessary steps for recruitment and appointment. This role, jointly funded by all 11 Hertfordshire councils, will provide strategic leadership and programme oversight for the LGR project. The position will be hosted by Hertfordshire County Council and will be a fixed-term contract for 24 months, with a salary range of £121,449 – £134,011 (plus on-costs) at Level 18 of the council's pay structure. The recruitment process will be collaborative, with Hertfordshire County Council leading the campaign, and is expected to involve external advertising and potentially an executive search agency. The proposed start date for the successful candidate is between April and June 2026.

Workforce Programme – Savings Update

The committee was asked to endorse the use of a time-limited Mutually Accepted Resignation Scheme (MARS) as part of the council's workforce savings programme and to approve the Director of People to engage with recognised trade unions on the scheme. This voluntary severance tool aims to achieve workforce cost reductions without resorting to compulsory redundancies, supporting the council's need to find approximately £40 million in savings annually by 2028-29. The scheme would operate under clear eligibility criteria, and the council would retain discretion over application acceptance. Concerns were raised by some councillors regarding the potential impact on staff morale and the lack of a defined target for staff reduction.