Somerset Council has committed £3 million over the next two years to conduct a thorough review of its staff pay levels and rewards. This move aims to address recruitment and retention challenges by ensuring pay scales are competitive and equitable.
The council is currently undergoing a major transformation programme, which saved approximately £33 million in its first phase that concluded in April, resulting in around 300 job losses. In September, councillors approved appointing Newton Consulting Ltd. to lead the next phase, called ‘Inspiring Innovation,’ with a budget of up to £20 million over several years.
Separately, the council agreed on up to £3 million for an extensive pay structure overhaul, designed to streamline the system amid a complex mix of staff terms shaped by past insourcing, outsourcing, and mergers of five organizations into one.
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Councillor Theo Butt Philip, portfolio holder for transformation, human resources, and localities, emphasized the necessity of this review: “It has been 21 years since our last full review, and we face ongoing recruitment difficulties with salaries not aligned to the current market. We need a fair and consistent pay and grading system.”
This pay review funding will be drawn from asset sales but largely spent internally, with consultancy support from Korn Ferry as needed. Implementation of any pay changes is planned for April 2027 to allow ample staff and union consultations and prepare for potential legal challenges.
However, council officers warn that without staff reductions, wage bills could increase by £7 million by 2027/28 and by £14 million by 2028/29, potentially resulting in council tax hikes. Despite these concerns, no further staffing cuts are planned at present.
Shadow portfolio holder Councillor Lucy Trimnell raised concerns about potential equal pay legal claims, which could financially overwhelm the council as seen in other authorities like Birmingham City Council. Officials reassured there are currently no active claims but stressed the importance of pre-emptive action to mitigate future risks.
Dawn Bettridge, the council’s HR director, highlighted that delaying pay review increases the risk of costly equal pay claims, a significant issue in local government and other sectors. Clive Heaphy, interim CFO, echoed this, referencing multi-billion-pound pay-outs by councils like Birmingham and Glasgow as cautionary examples.
The council’s executive committee is set to give the final business case approval for the pay and grading review on November 5 in Taunton, moving Somerset Council closer to a fairer and more sustainable pay system—albeit with financial risks to navigate.