The General Purposes Committee of Brent Council met on Monday 15 July 2024 and approved severance payments for up to four employees whose posts are redundant as part of a restructure within the Housing Management Service. The committee also approved the minutes from the previous meeting held on 28 May 2024.

Approval to Make Severance Payments

The committee approved severance payments for up to four employees whose posts are redundant. These payments consist predominantly of actuarial strain costs related to the release of pensions. The redundancies are part of a wider restructure within the Housing Management Service, which aims to improve resident services, increase the supply of social homes, and achieve cost savings.

Councillor Mili Patel introduced the report, noting that the redundancies were a consequence of new legislation, including the Building Safety Act 2022 and the Social Housing Regulation Act 2024, which necessitate a focus on regulatory readiness and tenant satisfaction. The report indicated that ten volunteers had come forward for redundancy, with two requiring committee approval and a further two at risk if they do not secure alternative roles.

The financial implications of the restructure include an estimated ongoing reduction in staffing costs of £0.67 million per annum once fully implemented. The report stated that the estimated costs for redundancy, severance, and pension strain are lower than the projected future savings, with a payback period of less than a year. Any in-year budgetary shortfalls arising from termination payments will be managed through earmarked reserves.

The committee was assured that the payments adhere to the council's Managing Change Policy and the requirements of the Local Government Pension Scheme. The report also confirmed that the payments do not include any special severance elements beyond statutory and contractual entitlements. An equality impact assessment has been conducted and will continue to be reviewed following the implementation of the restructure.

The decision to approve the severance payments was made under the council's powers to enhance statutory redundancy schemes and make severance payments, as outlined in the Local Government (Early Termination of Employment) (Discretionary Compensation) Regulations 2006. The council's Pay Policy Statement also requires termination payments exceeding £100,000 to be agreed by a committee.

The committee resolved to approve the severance payments as detailed in the exempt appendix to the report and to note that these payments do not include any additional elements beyond those calculated in accordance with the Council's Managing Change Policy and the Local Government Pension Scheme.

Minutes of the Previous Meeting

The committee approved the minutes of the previous meeting held on Tuesday 28 May 2024 as a correct record. The minutes from that meeting detailed the approval of severance payments for one employee, which was deemed an urgent item at the time due to the timing of the voluntary redundancy process. The previous meeting also covered the review of the representation of political groups on sub-committees and the subsequent appointments to various sub-committees for the 2024-2025 Municipal Year.