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Issued: 23 July 2004 Topic: Pay and Conditions

Implementation: 1 January 2004 onwards

Impact: Amends Police Circular 3/2003

Contact(s) for more information: George Vine (Tel: 0131 244 2155)
Martin McDermott (Tel: 0131 244 2160)
(at the above address)

Dear Colleague

Purpose of the circular: To draw attention to the amendments to the Special Priority Payments Scheme as set out in the memorandum to PNB Circular 03/16(Advisory), additional guidance contained in a PNB Official Side circular issued on 4 December and to the exclusion of superintendents and chief superintendents from the scheme as indicated at paragraph 9 of the guidance enclosed with Police Circular 10/2004. Annexes A and B set out how the Scheme will apply in Scotland.

Summary of contents:

Implementation of the Special Priority Payments Scheme as set out in PNB Circular 02/9 (Advisory) was authorised by Police Circular 3/2003. Subsequent agreements in the PNB amend the Scheme by:-

Increasing the value of the upper percentage limit from 30% to 40%; only in very exceptional cases should this limit be exceeded and only with the prior approval of the Scottish Ministers.

Encouraging cross force collaboration on a regional basis between all forces when drawing up Special Priority Payment Schemes for years two and three to avoid inter force anomalies. Scottish forces may wish to consider how to address this having regard to their own operational requirements and priorities and funding constraints.

Requiring diversity monitoring to be included in the reports on the operation of the scheme provided by forces to their police authorities.

Funding for Special Priority Payments has been included in Police GAE for each Scottish force and no separate funds will be made available.

A copy of this circular is enclosed for the Director of Finance in the police authority. Copies have also been sent to the Convention of Scottish Local Authorities, the police associations and the Accounts Commission.

George Vine
Police Division 1

ANNEX A

Special Priority Payments

Memorandum to PNB Circular 03/16 (Advisory)

At its meeting on 28 October 2003, PNB agreed to make the following amendments to the SPP Scheme:-

· The value of the upper percentage limit to be raised from 30% to 40%, save in very exceptional circumstances where agreed by the Secretary of State [Scottish Ministers] on an annual basis;

· The matter of inter-force anomalies to be addressed by the insertion of a footnote at Appendix C to the PNB pay and conditions agreement of 9 May 2002 as follows:-

"The PNB strongly encourages cross force collaboration on a regional basis between all forces when reviewing and drawing up SPP schemes for years two and three. This is also of a high priority when forces adapt schemes as a result of the increase in the threshold from 30% to 40% of force strength. Special attention should be given to inter-force units e.g. motorway patrol groups, where officers are undertaking a similar role but not all are in receipt of an SPP payment"

· Appendix C to be further amended to require diversity monitoring to be included within the regular reports on the operation of the scheme provided by forces to their police authorities.

PNB also agreed some detailed amendments to Section 3 and Appendix C of the 9 May Agreement to reinforce the emphasis of the SPP arrangements on posts rather than individuals, and to discourage undue complication and bureaucracy.

Annex B

Special Priority Payment Scheme

Extract from Additional PNB (Official Side) Guidance (4 December 2003)

1. We recognise that the contribution of all police officers is valuable, regardless of the post they fill. However, we also believe that it is appropriate that those officers in the most demanding and difficult frontline operational roles should attract additional rewards.

2. That is why the PNB agreed the Special Priority Payment (SPP) Scheme, under which additional one-off payments of between £500 and £3,000 normally, up to £5,000 exceptionally, will be made to officers in qualifying posts.

About the Scheme

3. The PNB Agreement of 9 May 2002, as amended by the PNB Agreement of 28 October 2003 (the relevant parts of which are attached) states that the SPP Scheme is to be targeted on frontline operational officers in particular. The Agreement also states that posts may qualify for payment where they:

· Carry a significantly higher responsibility level than the norm for the rank; or

· Present special difficulties in recruitment and retention; or

· Have specially demanding working conditions and working environments.

4. Forces have to spend minimum amounts on the scheme. In 2003/04, forces have to spend 1% of their basic paybill for 2002/03 for all federated ranks taking account of the national insurance contributions payable on the payments. In 2004/05, that rises to 1.5% and in 2005/06 to 2%.

5. The PNB Agreement records that PNB expects that no less than 20% and no more than 40% of force strength in the federated ranks should qualify for a payment except in very exceptional circumstances where agreed by the Secretary of State on an annual basis.

Developing Local Schemes

6. It is for each chief constable and police authority to determine locally the posts that should attract payment under this scheme, and the level of payment to be made to each qualifying post. In doing so, they should have regard and give due weight to the following factors:

· The importance of individual posts to national and local policing priorities;

· The relative importance of continuity in the post; and

· Whether the posts meet one or more of the national criteria specified in the PNB Agreement, set out in paragraph 3 above.

7. PNB strongly encourages cross force collaboration on a regional basis between all forces when reviewing and drawing up SPP schemes for years two and three. This is also of a high priority when forces adapt schemes as a result of the increase in the threshold from 30% to 40% of force strength. Special attention should be given to inter-force units e.g. motorway patrol groups, where officers are undertaking a similar role but not all are in receipt of an SPP payment.

8. Chief constables and police authorities are required to consult local staff associations before deciding their local scheme.

9. This scheme is about making extra payments to special priority posts in local schemes. Forces should put in place a procedure whereby a postholder in a designated post may ask for a review of a decision to exclude him from payment on the grounds that he is not fully competent in and highly committed to the duties and responsibilities of the post, as set out in paragraph 4 of Appendix C.

Targeting Local Schemes on Frontline Operational Posts

10. The PNB Agreement requires police authorities and chief constables to target their local schemes on frontline operational officers in particular, and to apply the criteria outlined above. The scheme envisages local schemes being tailored to the requirements of local circumstances. The scheme provides flexibility for managers to reward those posts where individuals are required to operate above and beyond the norm for the rank and to enable managers to respond to local management issues and requirements.

11. In developing local schemes, the PNB Official Side recommends that police authorities and forces give particular weight in their considerations to:

· Those frontline posts that normally involve working in particularly demanding areas, in direct contact with the public;

· Important and demanding posts in which it is particularly important to retain officers over a period of time (in order, for example, that they can establish and maintain good working relationships with local communities, or where a particularly high level of specialist skills is required for the role);

· Particularly demanding detective posts, for example those that routinely require long hours because of the nature of the work (and where that workload cannot be reduced through other management action)

12. Local schemes should also have regard to the policing priorities agreed in the annual policing plan, which, in England and Wales, must take into account the Home Secretary's strategic priorities for the police service as set out in the National Policing Plan.

13. Local schemes should demonstrate that chief officers and police authorities have correctly applied the scheme criteria and this guidance in finalising their list of qualifying posts; and that the types of posts that were most important in terms of national and local policing priorities have been rewarded.

14. Finally, local schemes should not discriminate on the grounds of gender, race, sexual orientation, religion or any other immaterial factor.

Funding

15. The PNB Agreement of 9 May 2002 states that forces have to spend minimum amounts on the SPP scheme. In 2003/04, forces have to spend 1% of their budgeted basic paybill for 2002/03 for all federated ranks. In 2004/05, that rises to 1.5% and in 2005/06 to 2%.

National Insurance Contributions

16. Forces will have to take account of the National Insurance contributions payable on the payments. The minimum costs for each year of the scheme are intended to include employer's NI contributions.

2003/04

17. In 2003/04 every force will have to spend a minimum of 1% of its budgeted annual basic paybill for 2002/03 for all federated ranks on its SPP scheme. The first payment to postholders, in December 2003, will be based on the number of months, between April and December 2003, that the postholder has spent in a qualifying post.

18. Assuming that a force had a budgeted annual basic paybill for 2002/03 of £50million, its minimum SPP spend for April-December 2003: would be:

9/12x (1% x 50,000,000) = £375,000 (including NI contributions)

2004/05

19. In 2004/05 every force will have to spend a minimum of 1.5% of its annual basic paybill for all federated ranks on its SPP scheme. The payment to postholders in December 2004 will be based on the number of months, between January and December 2004, that the postholder has spent in a qualifying post.

20. Funding for January to March 2004 has been provided based on the budgeted annual basic paybill for 2002/03. Assuming that a force had a budgeted annual basic paybill for 2002/03 of £50 million, its minimum SPP spend for January to March 2004 would be:

3/12 x (1% x 50,000,000) =£125,000 (including NI contributions)

21. Funding for April to December 2004 will be based on the budgeted annual basic paybill for 2004/05. Assuming that a force has a budgeted annual basic paybill for 2004/05 of £50 million, its minimum SPP spend for April to December 2004 would be:

9/12 x (1.5% x 50,000,000) = £562,500 (including NI contributions)

22. It is the responsibility of chief officers and police authorities to ensure that their schemes comply with the PNB Agreement of 9 May 2002, as amended by the PNB Agreement of 24 October 2003, and have regard to this Official Side guidance.

2005/06

23. In 2005/06 every force will have to spend a minimum of 2% of its annual basic paybill for all federated ranks on its SPP scheme. The payment to postholders in December 2005 will be based on the number of months, between January and December 2005, that the postholder has spent in a qualifying post.

24. Funding for January to March 2005 will be based on the budgeted annual basic paybill for 2004/05. Assuming that a force has a budgeted annual basic paybill for 2004/05 of £50 million, its minimum SPP spend for January to March 2005 would be:

3/12 x (1.5% x 50,000,000) = £187,500 (including NI contributions)

25. Funding for April to December 2005 will be based on the budgeted annual basic paybill for 2005/06. Assuming that a force has a budgeted annual basic paybill for 2005/06 of £50 million, its minimum SPP spend for April to December 2005 would be:

9/12 x (2% x 50,000,000) = £750,000 (including NI contributions)

Attachment to Annex B: Revised Extract from May 2002 Agreement

3 ACHIEVING GREATER FLEXIBILITY AND TARGETED REWARDS IN THE PAY SYSTEM

3.1 A scheme for Special Priority Payments will operate in each force, as at APPENDIX C. This scheme will be targeted on front line/operational posts in particular.

3.2 Payments under this scheme to individuals will not be less than £500 a year or more than £3,000 a year normally, although exceptionally, payments of up to £5,000 a year may be made. They will be taxable but not pensionable and will be paid as a single lump sum in December. The first payments will be made in December 2003, and then annually each December thereafter. The PNB expects that no less than 20% of force strength in the federated ranks will benefit from this scheme and no more than 40%, save in very exceptional circumstances where agreed by the Secretary of State on an annual basis. In the case of a post holder who has been in a qualifying post for less than the calendar year, the payments will be pro-rata. Pro-rata means a fraction of the amount allocated to the targeted post corresponding to the fraction of the calendar year spent in the qualifying post.

3.3 In the first year at least an additional 1% of the force's annual basic paybill for the federated ranks will be spent on this scheme; in the second year at least 1½% and in the third year, and thereafter, at least 2%. Funding will be provided centrally to meet these minimum costs.

Appendix C SPECIAL PRIORITY PAYMENTS

1. Police authorities and chief constables will agree, in consultation with the appropriate staff associations, a local scheme of payments [1] in line with the target post criteria in paragraph 3 below and having regard to any guidance from the Home Secretary, Scottish or Northern Ireland Ministers, as appropriate.

2. In the first year at least an additional 1% of the force's annual basic paybill for federated ranks will be spent on this scheme; in the second year at least 1½% and in the third year, and thereafter, at least 2%. Funding will be provided centrally to meet these minimum costs.

3. Posts may qualify for payment where they:

· Carry a significantly higher responsibility level than the norm for the rank; or

· Present particular difficulties in recruitment and retention; or

· Have specially demanding working conditions or working environments.

This scheme will be targeted on front line/operational posts in particular.

4. To qualify for payment, officers must be fully competent in and highly committed to their duties and responsibilities. The PNB intends that assessing whether individuals meet these two criteria should be a simple, unbureaucratic process. The PNB expects that no less than 20% of force strength in the federated ranks will benefit from this scheme and no more than 40%, save in very exceptional circumstances where agreed by the Secretary of State on an annual basis.

5. Payments will be made annually on a one-off basis and should be no less than £500 and no more than £3,000 normally, although exceptionally, payments of up to £5,000 may be made. They will be taxable and non-pensionable.

6. Police authorities will receive regular reports on the operation of this scheme and its impact on various parts of their force, including its impact on diversity.

[1] The PNB strongly encourages cross force collaboration on a regional basis between all forces when reviewing and drawing up SPP schemes for years two and three. This is also of a high priority when forces adapt schemes as a result of the increase in the threshold from 30% to 40% of force strength. Special attention should be given to inter-force units e.g. motorway patrol groups, where officers are undertaking a similar role but not all are in receipt of an SPP payment.