Select Committee on Welsh Affairs Minutes of Evidence

Supplementary note from The Children's Society


  The calculation (based on the 2001-02 budget) is as follows:

    —  Gross budgeted expenditure for England and Wales £46 million;

    —  Gross budgeted expenditure for Wales £3.8 million; and

    —  Wales expenditure as a percentage of the total 8.3 per cent.


  In the North East of England the Children's and Young People's Division is budgeted to spend a gross amount of £1,020,000 which, after deducting projected income from local authority partners and central government of £380,000, leaves the Society making a contribution of £640,000 from its own voluntary income.

  The net income from the North East from all fundraising activity including shops is projected to be £440,000 leaving a balance of £200,000 to be funded from central fundraising activities and other regions in England.


  The document referred to in the discussion prior to paragraph 204 is attached and the relevant section is headed "2.1 Implementing the Reward Strategy and Cost of Living increases (£1.3 million)".

  In the previous six months there had been a thorough examination of what human resources specialists calls a reward package ie the combination of salary, pension provision, annual leave, sickness provision and other benefits offered to staff. This took place because we needed to modernise our present pay systems with which there was much staff dissatisfaction. We also needed to be more sensitive to the employment markets as we were losing key managers to new government initiatives and other organisations, both voluntary and statutory, which were able to offer higher salaries.

  The paper shows that £705,000 had been set aside for inflation in line with the expected settlement for local authorities which the Society follows.

  The sums totalling £617,000 under the heading "reward" were separated out to show the costs for staff additional to cost of living increases. This total amount breaks down roughly into two equal halves.

  The first half is for increments, which as stated at the Committee hearing, are a contractual obligation for all staff who are paid on incremental scales (see note about Directors below).

  The second half is for increases for those posts where it is clear that salaries have to be increased if we are not to lose key staff to other organisations.

  For the record, the Chief Executive and the Directors of the Society are not entitled to increments, automatic cost of living increases or London Weighting. They are paid a fixed sum which is reviewed each year by the Finance Committee which acts as the Society's Remuneration Committee. The past practice has been to follow the cost of living increase which has been agreed for all other staff and which is in line with that paid by local authorities. As with all other staff, the Directors do not receive bonuses in any form whatsoever.


  2.  A breakdown of the £3.7 million in voluntary income based investments is:

    2.1.  Implementing the Reward Strategy and Cost of Living increases (£1.3 million).

      2.1.1.  Children and Young People (£547,000 Cost of Living; £409,000 Reward).

      2.1.2.  Fundraising (already incorporated in restructuring).

      2.1.3.  Human Resources (£36,000 Cost of Living; £39,000 Reward).

      2.1.4.  Finance and Administration (£105,000 Cost of Living; £162,000 Reward).

      2.1.5.  Directorate (£17,000 Cost of Living; £7,000 Reward).

    2.2.  Re-instating the pension contribution (£1.1 million).

      2.2.1.  Children and Young People (£885,000).

      2.2.2.  Fundraising (already incorporated in restructuring).

      2.2.3.  Human Resources (£55,000).

      2.2.4.  Finance and Administration (£162,000).

      2.2.5.  Directorate (£26,000).

    2.3.  Other direct investments in the Children and Young People's division (£1.2 million).

      2.3.1.  Seedbed funding for new initiatives (£200,000).

      2.3.2.  Support to managers and projects in order to enhance capacity at regional and project level (£250,000).

2.3.3.  Additional funding for training and development (£300,000).

      2.3.4.  Additional funding to compensate for carry forward provision (£460,000).

    2.4.  Other investments (£80,000).

    2.4.1.  Additional funding for training and development for other divisions (£30,000).

    2.4.2.  Funding needed to finance lease obligations post project closures (£50,000).


  The Society's Human Resources Consultant in Wales (Lynn Williams) reports that the last advertisement in the press for a staff vacancy was on 4 October from which no appointments were made. The Trustees' decision about Wales was made on 18 October. She can find no evidence of any cases where anyone being offered employment with TCS had given notice to a former employer within the period in question.

  At the time of the announcement Ms Williams asked Managers to provide information on posts where offers of employment had been made but staff had not yet taken up post. No-one was identified. Offers of employment that had been made in September and October were mainly in respect of sessional contracts where the person concerned was not in employment or was continuing in a current part-time post in addition to doing sessional hours for the Society. The only withdrawals Ms Williams is aware of are cases where someone had decided to take up another offer of employment and one case where the person had not yet given in her notice.

Ian Sparks

Chief Executive

9 January 2002

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