Following representations from ALACE, DCLG has dropped its plan to
demand that councils adopt targets for the pay multiple (the ratio between top
pay and median pay). Such a requirement had previously appeared in the draft
statutory guidance on pay policy statements. However, ALACE pointed out in its
comments on the draft that there was no such requirement in the Hutton report
on fair pay in the public sector; and DCLG subsequently changed the text of the
final guidance to make clear that local authorities “are not required to
develop policies on reaching or maintaining a specific pay multiple”.
This follows earlier success by ALACE in helping dissuade Will Hutton
from favouring any limit at all on pay multiples in the public sector. The
government had initially asked him to consider a maximum multiple of 20; and
his interim report explicitly stated that his final report would recommend what
the maximum should be. In the event, however, following discussions between
ALACE and his team, the final report said that public sector organisations
should not have to comply with any cap at all.
The Code of Recommended Practice for Local Authorities on Data
Transparency does advocate publishing data on the actual pay multiple; but
there is no requirement for it to be included in the Pay Policy Statement, or
for there to be any policy or target for the multiple.