Somerset Council is set to invest £3 million over the next two years in a thorough review of staff pay levels and reward structures. This initiative aims to ensure the council remains competitive in recruiting and retaining employees, while also working to reduce reliance on costly agency staff.
The council is simultaneously undergoing a significant transformation program, which has already saved approximately £33 million in its initial phase, completed in April. This phase saw the loss of roughly 300 positions. In September, councillors approved the appointment of Newton Consulting Ltd. to lead the subsequent phase, known as ‘Inspiring Innovation,’ with a planned expenditure of up to £20 million over several years, including an initial £1.5 million investment.
The pay and rewards review is separate from the Newton Consulting contract and was agreed upon in principle by the council’s executive committee in May. Funding for the review will come from the sale of non-operational assets, with much of the work being conducted internally. The council has also engaged consultancy firm Korn Ferry to provide external expertise and additional support as necessary.
READ MORE: Small Somerset village to gain 30 new homes after planning appeal success
Councillor Theo Butt Philip, portfolio holder for transformation, human resources, and localities, emphasized the urgency of the pay review. “We have not conducted a full review for 21 years, aside from a light update in 2014,” he stated. “Our staff work under varied terms and conditions following multiple organizational changes. We face recruitment challenges because our pay doesn’t always match the market, and there are numerous retention and recruitment allowances currently in place. We need a consistent and fair system for pay and grading.”
Nicola Houwayek, the council’s workforce transformation lead officer, described the review as “the next natural step following local government reorganization,” intended to make officer pay “affordable, fair, and equitable.” Any changes will not be implemented until April 2027, allowing sufficient time for consultation with employees and trade unions as well as preparation for potential legal challenges.
Financial estimates indicate that if staffing levels remain unchanged, the council’s wage bill could increase by around £7 million by 2027/28 and by £14 million by 2028/29, likely leading to higher council taxes to cover the costs. Though transformation efforts aim to create a smaller, well-compensated workforce, no immediate further cuts are planned.
Concerns were raised by Councillor Lucy Trimnell, shadow portfolio holder for adult services, housing, and homelessness, about the risk of equal pay claims. She cautioned against investing £3 million only to discover that the council might owe significantly more in unresolved pay disparities. Councillor Trimnell referenced the financial struggles faced by other councils due to such claims.
In response, Dawn Bettridge, service director for human resources, reported no current or legacy equal pay claims against Somerset Council but acknowledged the risks increase over time. “Given the pressures of recruitment and retention, timely action is essential to mitigate these risks,” she said.
Interim Chief Financial Officer Clive Heaphy highlighted the widespread nature of equal pay issues across the sector, citing the enormous payout Birmingham City Council made, totaling £1.2 billion—equivalent to four years of Somerset Council’s entire budget. Similar challenges face councils in Glasgow, Southampton, and even private sectors like major supermarket chains.
The executive committee will provide the final approval for the pay and grading review business case at its upcoming meeting in Taunton on November 5.