Decision Maker: Personnel Committee, Cabinet

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Date of Decision: February 11, 2026

Purpose:

Content: Decision   RESOLVED that Cabinet:   1.1) noted the feedback from consultation with staff on the pay award 2026/27 set out in Appendix A (to be provided at the committee) 1.2) recommended to Council a local pay award of 4% for all staff for 2026/27 as part of the Pay Policy Statement 2026/27, subject to the outcome of consultation with staff.    Reasons for decision   In order to maintain good employee relations and secure the most effective recruitment and retention outcomes, it was vital that we monitor pay movements nationally and in neighbouring local authorities, both in Hertfordshire and in the nearest London boroughs. As is the case across all local authorities, Hertsmere continued to struggle with recruitment and retention difficulties in the current candidate driven recruitment market. For Hertsmere, the challenge was greater still because of the proximity to several London boroughs.   The Council was not party to the NJC Agreement on Pay and this therefore meant that last year Hertsmere were able to settle our local pay award early and pay it from 1 April 2025. The NJC award which was an increase of 3.2% to all staff, was not settled until July 2025.   This year, provision had been made in the draft revenue budget for 2026/27 to allow for a pay award of 3% with effect from 1 April 2026. A standard percentage increase across all grades was recommended. The recommendation ensured reasonable headroom between the lowest paid worker (£13.56 per hour) and the new national minimum wage of £12.71 from 1 April 2026. It also ensures that our lowest paid workers are paid more than the UK Real Living Wage which will be £13.45 from 1 April 2026. (The Real Living Wage is a voluntary hourly pay rate, calculated annually by the Living Wage Foundation to reflect the actual cost of living).   Alternative Options Considered   The risk of losing or not being able to attract the necessary human resources to deliver the Council’s service commitments and to progress towards the achievement of the Council’s Vision and Corporate Plan was listed as a ‘serious’ risk in the Corporate Risk register with a very likely chance of occurring. The measures set out in this report were relevant to the mitigation of these risks.