FOI release

FOI21/22-165 - Information about pay award and pay changes

Updated 14 July 2022

Our ref: FOI21/22-165

Date: 21 March 2022

Dear

Re: Freedom of Information Act 2000

Thank you for your email of 21 February 2022 in which you requested from the Insolvency Service:

1) Name of unions which are signatories to your main collective agreement covering pay and conditions;

2) Number of employees covered by the agreement;

3) A copy of your 2021/22 pay settlement. Please provide the following information: a) Was the 2021/22 public sector pay freeze applied for all employees earning over £24,000pa with those earning less receiving either an increase in line with the National Living Wage or a consolidated £250, whichever the greater? b) Have there been any changes to the pay scales? If so, what were the changes? c) Were performance-related bonuses paid? If so, what were the arrangements for performance-related bonuses? d) Were any other non-consolidated payments made? If so, what were the arrangements for these payments?

Family friendly policies 4) What is the entitlement to occupational maternity pay for employees? Please specify: a) any service requirement b) period for which occupational maternity pay is paid c) level of payment eg. 26 weeks paid at 100% of pay for staff with one year’s service

5) What is the entitlement to occupational adoption pay for employees? Please specify:

a) any service requirement b) period for which occupational adoption pay is paid c) level of payment eg. 26 weeks paid at 100% of pay for staff with one year’s service

6) What is the entitlement to occupational shared parental pay for employees? Please specify: a) any service requirement b) period for which occupational shared parental pay is paid c) level of payment eg. 26 weeks paid at 100% of pay for staff with one year’s service

7) What is the entitlement to occupational paternity pay for employees? Please specify: a) any service requirement b) period for which occupational paternity pay is paid c) level of payment eg. 3 weeks paid at 100% of pay for staff with 26 weeks’ service

Your request has been dealt with under the Freedom of Information Act 2000 (FOIA).

I can confirm the agency holds the information that you have requested, and I have provided answers to your questions below:

1) Name of unions which are signatories to your main collective agreement covering pay and conditions - Prospect, The Public and Commercial Services Union (PCS), and the FDA (FDA - the union of choice for senior managers and professionals in public service).

2) Number of employees covered by the agreement – On 1 Aug 2021 there were 1,781 employees at the Insolvency Service (INSS) that are covered by the collective agreement covering pay and conditions.

3) A copy of your 2021/22 pay settlement - Please find a copy of the 2021 Pay award documentation attached (Pay award 2021-22). Please provide the following information: a) Was the 2021/22 public sector pay freeze applied for all employees earning over £24,000pa with those earning less receiving either an increase in line with the National Living Wage or a consolidated £250, whichever the greater? Yes b) Have there been any changes to the pay scales? If so, what were the changes? Please see the spreadsheet attached (Pay changes 2021-22) which evidences the 2021 changes. c) Were performance-related bonuses paid? If so, what were the arrangements for performance-related bonuses? There are no performance related bonuses paid in the Insolvency Service. d) Were any other non-consolidated payments made? If so, what were the arrangements for these payments? The Insolvency Service runs an in-year reward and recognition scheme with non-consolidated payments.

4) What is the entitlement to occupational maternity pay for employees? All pregnant employees, regardless of length of service or hours worked, have a statutory right to 26 weeks’ ordinary maternity leave (OML).

5) What is the entitlement to occupational adoption pay for employees? If you adopt and are the primary carer you can take 26 weeks ordinary adoption leave followed immediately by up to 26 weeks additional adoption leave.

6) What is the entitlement to occupational shared parental pay for employees? Shared parental leave and pay allows eligible parents to share up to 50 weeks of leave and 37 weeks of pay for the first year of their child’s life.

7) What is the entitlement to occupational paternity pay for employees? Normally, SPP is paid at the same rate as lower rate statutory maternity pay. However, the Insolvency Service pays employees who satisfy the statutory requirements full pay for a period of two weeks’ paternity leave, followed by standard SPP for the remainder of the period.

If you are not satisfied with the response we have provided you and would like us to reconsider our decision by way of an internal review (IR), please contact our Information Rights Team at foi@insolvency.gov.uk or by post at:

Information Rights Team
The Insolvency Service
3rd Floor
Cannon House
18 Priory Queensway
Birmingham
B4 6FD
United Kingdom

You also have the right to contact the Information Commissioners Office (ICO) if you wish for them to investigate any complaint you may have in regards to our handling of your request. However, please note that the ICO is likely to expect an IR to have been completed in the first instance.

Kind regards

Information Rights Team The Insolvency Service

The Department for Business, Energy and Industrial Strategy, Official receivers and the Adjudicator are Data Controllers in respect of personal data processed by the Insolvency Service. For the details about how personal data is processed by the agency, please see the full Insolvency Service Personal Information Charter here: Personal information charter - The Insolvency Service - GOV.UK (www.gov.uk)

Pay award 2021/22

What is the pay award?

The pay award is the annual agreed pay approach for the Insolvency Service. The annual pay award includes the new pay range minimum and maxima for the year, as well as any pay increases for our staff that are agreed under the pay remit.

Pay Pause.

In November 2020 the Chancellor announced as part of the Spending Review 2020 that there will be a temporary pause on pay rises for most public sector workforces in 2021/22, including the Civil Service. This pay pause will mean that no Civil Servants earning more than £24000pa will receive a pay award in 2021/22 and there will be no changes to the minimum and maxima pay scales to staff earning more than £24000pa.

Those staff earning a full time equivalent base salary less than £24000pa excluding overtime and allowances will receive a consolidated increase of £250. For those who will be receiving an increase to the new National Living Wage rate of £8.91 an hour, they will receive the National Living Wage increase or £250, whichever is greater. In practise this means that all staff with a full time equivalent base salary under £24000pa in the Insolvency service will receive a £250 pay award effective from the 1st August 2021.

What happens next?

If you are currently paid less than £24000pa lease ensure you check your pay slip for August 2021, which should be available on or around 23/08/2021. It should for eligible employees show the pay increases and changes resulting from the pay award. Please ensure your pay is correct.

How did we approach this year’s award?

The 2021/22 pay award is in line with the Treasury annual pay guidance for 2021/22 that applies across the Civil Service and may differ from guidance for other parts of the public sector where multi-year approaches agreed with Treasury continue.

The pay award for 2021/22 is unique in that it has been imposed across the Civil Service by government as part of the spending review of 2020. This has meant that for the 2021/22 pay award pay negotiations and consultation from Trade Unions has been minimal.

What is in the 2021/22 pay award?

The 2021/22 pay remit guidance is clear that no Civil Servants except those covered by an agreed multi-year pay deal (this does not apply to the Insolvency Service) will receive an increase in their pay unless they earn a full time equivalent base salary of less than

£24000pa. Full details regarding the pay pause and the pay remit guidance for 2021/22 can be found here: Civil Service Pay Remit Guidance 2021/22 - GOV.UK (www.gov.uk)

Please be aware that pay awards are historically re-negotiated with the Trade Unions annually under a collective bargaining agreement. The terms offered in the 2021/22 pay award are unusual in that they have been imposed due to the Spending Review of 2020.

For the 2022-23 (and beyond) pay remit process, all consolidated and non-consolidated payments will be subject to the pay remit agreed in line with the 2021-23 (and beyond) Civil Service Pay Guidance.

Insolvency Service Pay - changes

01 August 2020 01 August 2021
Equivalent Civil Service Grade Grade Entry Max Grade Entry Max
London       London    
AA A1   21,789 A1   22,039
             
National       National    
AA A1   18,900 A1   19,150
AO A2   20,877 A2   21,127
EO B1 23,557 26,406 B1 23,807 26,406