Agenda item

[NOTE:  Councillors D, Jones, G. Jones and E. Schiavone had earlier declared an interest in this item.]

The Committee considered a report providing an update on the Early Voluntary Retirement and Redundancy Budget, following a request by the Committee earlier in the year for further details on the approach taken and progress made in relation to School Redundancy and Early Voluntary Retirement (EVR).

The School Funding (Wales) Regulations 2010 established that expenditure in respect of the dismissal or premature retirement of any person and expenditure in respect of teachers’ emoluments are part of the Local Authority budget.  These costs are outside the direct control of the Department but the Department will seek to work with schools and trade unions to reduce the overall impact of staff termination costs.

School based staff are recruited by Governing Bodies and are employees of Carmarthenshire County Council.  Schools can have a budget shortfall due to a range of issues but predominantly it is due to a falling pupil roll.  When that happens it can lead to a review of staffing and potential reductions in the school workforce.  When staff become surplus to requirements the costs of releasing the staff are borne by the Council. 

The budget allocated to address Early Voluntary Retirement and Redundancy costs is held by the Department of Education & Children’s Services.  The majority of the budget is locked in as it relates to pension contributions and other costs for staff released in previous years.  Elements of these costs will continue until pensioners die.  There is less than £100k budget available to meet new expenditure arising within the year, which is giving rise to a significant projected over-spend in the current year.  For a number of years this budget has been under considerable pressure and has persistently over-spent over recent years by significant amounts.  Current predictions are that the budget will overspend by £300k in 2018/19.

With further significant rationalisation of the schools network planned through the MEP, some rural primary schools experiencing a continuing decline in forecast pupil numbers despite a generally increasing birth rate, and with secondary school pupil numbers forecast to decline for a couple of years yet, there is little prospect of the pressures on this budget easing in the foreseeable future.  Officers have been reviewing processes and practice in order to better manage expenditure and ensure that all business cases presented are robustly challenged.  Some changes made to date include:-

- the Premature Retirement and Redundancy Discretionary Compensation

  and School Safer Recruitment Policies have been reviewed and updated;

- the discretionary “added years” element has been removed;

- regular meetings are held between Finance, Human Resources and

  Education to consider this agenda;

- all current school structures have been analysed in order to develop a

  “Carmarthenshire Model School Staffing Structure” for different sized

  Schools;

- a “Change Review Panel” process has been developed to challenge schools

  on their plans which aligns the school process with the corporate process.

The following questions/observations were raised on the report:-

·       Reference was made to the fact that the budget is overspent year on year and officers were asked why they don’t make sure that the budget is correct in the first place.  The Director explained that that question is asked every year, however, we are in challenging financial times.  He reassured the Committee that he would be making representations again this year in this regard;

·       Concern was expressed that less than £100k is available for new retirees and officers were asked what happens in cases of normal retirement and whether that budget is also overspent.  The Committee was advised that contributions made by members fund the normal retirement applications.  If you are made redundant you are entitled to be treated as though you had gone down the normal retirement route.  The schools gets the efficiency savings but the cost of compensation falls on the Authority;

·       Reference was made to the role of school governors and officers were asked if they are prepared to make a decision with regard to redundancy when required or do they delay and lead the school further into the red.  Officers were asked if perhaps this should be included in the school governors’ programme of training.  The Head of Education Services advised the Committee that the response of Governing Bodies to such situations varies from school to school.  Fortunately, the Local Authority has good experience of some Governing Bodies acting proactively in such circumstances.  He added that he would pursue the issue of further training with colleagues in the Governance Section;

·       Asked how many people have left on EVR or redundancy, the Director agreed to circulate this information via e-mail;

·       Asked whether relocation is considered when the need for a reduction in staff is identified at a school, the Committee was advised that when schools receive their budget allocation they will start planning their staffing etc. for the coming September.  If, consequently, a teacher loses their job officers liaise with other schools in an attempt to secure alternative employment;

·       Reference was made to the fact that schools need to be made aware that there are implications in making someone redundant under a certain age.  The Director advised the Committee that not many schools have teachers over the age of 55 so now we are facing the possibility of compulsory redundancy for under 55s but then there are no implications on the Authority because they would not be eligible to access their pension.  He added that it would be possible to arrange a workshop for the Committee on teachers’ pensions.

RESOLVED that the report be received.