Skip to content

Council to consider annual pay policy

Published on Wednesday, March 14, 2018

COUNCILLORS in Leicester will be asked to consider an annual statement on the council’s pay policy.

The report – which details pay of the council’s chief officers within the context of its wider workforce – must be published annually under section 38 of the Localism Act.

Based on the latest available data, the report shows that the salaries of Leicester City Council’s chief officers are comparable, or lower, than those paid at Coventry, Derby and Nottingham city councils.

The top earner at Leicester City Council is the chief operating officer. This statutory role is paid a significantly lower salary – £30,000 to £55,000 less – than that of chief executives at the neighbouring unitary authorities. Under the mayoral model of governance at Leicester City Council, the role of chief executive was deleted.

It is also recommended that councils publish the ratio of top earner to median earner employed by the authority.

At Leicester City Council the ratio is 5.7:1, based on the top salary of £130,048 to the median salary of £24,174. The gap is significantly smaller than at neighbouring unitary councils, which have a ratio of at least 7:1.

Since 2013, the city council has backed the National Living Wage. This means that 800 of the lowest paid council staff are paid a supplement to bring their salaries into line with the National Living Wage, which is currently £8.75 per hour.

In a separate report, the council has published details of its gender pay gap, in line with The Equality Act 2010 (Gender Pay Gap) Regulations 2017.

At Leicester City Council, the median hourly rate is £12.01 for men, and £11.63 per hour for women. Therefore, the gender pay gap is 3.1%. This compares favourably with the national figure of 9.1% (source: ‘Understanding the gender pay gap in the UK’, Office of National Statistics, Jan 2018).

City Mayor Peter Soulsby said: “It is essential that there is public accountability and full member involvement in agreeing local authority pay policies.

“This annual statement helps ensure that Leicester City Council’s pay policies are open and transparent. This is particularly important during what has been the longest and most severe period of spending cuts we have ever experienced.

“It is encouraging that this latest statement reflects our commitment to fair pay and to reducing the costs of senior management.”

Leicester City Council’s Pay Policy 2018/19 will go before full council at its meeting on Thursday 22 March. Once approved, it will be available to view on the city council’s website.