The Employment Committee of Hertfordshire Council met on Tuesday 27 January 2026 to discuss and approve the council's pay policy for the upcoming financial year, review its pay principles and structures, and address the recruitment of a Programme Director for Local Government Reorganisation (LGR) transition. Key decisions included endorsing the pay policy for 2026-2027, approving adjustments to pay structures for specific roles within the Organisational Leadership Job Family, and agreeing to the creation and recruitment process for a Programme Director for LGR transition. The committee also discussed and approved the introduction of a Mutually Agreed Resignation Scheme (MARS) as part of the workforce savings programme.

Pay Policy 2026-2027

The committee reviewed and endorsed the proposed Pay Policy for April 2026 to March 2027. This policy, a statutory requirement under the Localism Act 2011¹, outlines the council's approach to remuneration for its senior managers and lowest-paid employees, aiming to enhance transparency and accountability. No fundamental changes have been made to the policy from previous years, with updates primarily consisting of revised figures. The policy will be presented to the full council for approval on 17 February 2026. The committee also noted the forthcoming data release, including the council's gender pay gap information for April 2026.

2025 Pay Review – Hertfordshire Pay Principles and Pay Structure

The committee endorsed the findings of the 2025 Pay Review concerning the council's pay principles and salary structures for employees on National Joint Council (NJC) Local Government terms. The review, conducted every three years, found that the current pay structures for levels 2 to 14 generally meet or exceed the market median, with Pay Point 3 of each level averaging 8% above the market median. Consequently, no significant adjustments to the pay structure values were recommended. The Strategic Management Board's² decision to maintain the current structure, with overlaps managed through existing policy, was also endorsed. The review of the Market Unsocial Hours Payment (MUSHA)³ recommended its retention in its current format pending a wider review.

2025 Pay Review – Organisational Leadership

The committee reviewed the 2025 Pay Review findings for the Organisational Leadership Job Family (levels 15-21). The review indicated that while most levels met or exceeded the market median, Pay Point 3 in Level 18 was found to be 2.4% below the market median. To address this, a recommendation was made to adjust the pay range for four roles at Level 18 from Pay Point 1-3 to Pay Point 2-4. This adjustment ensures the top of their range is at or above the market median and is expected to cost approximately £24,000 per annum once all four roles progress, with the first opportunity for progression being June 2026. No changes were recommended for Level 21, as the role in that level is already on a market-enhanced range above the median. The review of 22 roles on market-enhanced ranges across levels 15-21 concluded that these ranges continue to effectively benchmark against their specific markets, with no immediate changes recommended. The committee was also informed about ongoing discussions regarding the pay of Coroners, following the withdrawal of the national negotiating body.

Recruitment Programme Director – LGR Transition

The committee approved the creation of a new fixed-term post for a Programme Director for LGR Transition, to be hosted by Hertfordshire County Council and jointly funded by all 11 Hertfordshire councils. This role, initially for 24 months, will provide strategic leadership and oversight for the LGR programme, ensuring a coordinated and effective transition to new unitary authorities. The Programme Director will report to the Chief Executives Coordinating Group (CECG)⁴ for objectives and delivery, and to the Deputy Chief Executive and Executive Director of Resources for day-to-day management. The position will be advertised at Level 18, Pay Points 2 to 4, with an estimated annual cost of £157,000-£174,000, including on-costs. The recruitment process will be collaborative, with Hertfordshire County Council leading the campaign, and an interim Programme Director will be appointed to bridge the gap until the permanent role is filled, likely between April and June 2026.

Workforce Programme – Savings Update

The committee endorsed the proposal to introduce a time-limited Mutually Agreed Resignation Scheme (MARS)⁵ as part of the council's workforce savings programme. This voluntary severance tool aims to achieve workforce cost reductions without resorting to compulsory redundancies, aligning with the council's People Strategy and supporting organisational change. The scheme will operate under clear eligibility criteria to ensure critical service delivery is maintained, and applications will be subject to the council's discretion. The Director of People will engage with recognised Trade Unions on the specifics of the scheme. This initiative is part of a broader effort to achieve approximately £5 million in workforce savings, in response to a projected reduction in central government funding of over £40 million per year by 2028-29.