The Association of Chief Police Officers Submission to the. Police Remuneration Review Body. January 2015

Transcription

1 The Association of Chief Police Officers Submission to the Police Remuneration Review Body January

2 Contents Table of Contents Contents... 2 Executive Summary... 5 CHAPTER Introduction The role of the police The structure of policing Police officer roles and responsibilities The office of constable The broader police family The future of ACPO Chapter 1 Findings CHAPTER The Operational Context The Prioritisation of Demand Chapter 2 Findings CHAPTER The Economic Context Changes to Police Officer numbers by rank The Future of Police Funding The impact of austerity on forces Predictions for the UK labour market Chapter 3 Findings CHAPTER The Workforce Context Police Recruitment

3 4.3 Analysis of Recruitment Data Fast Track and Direct Entry Schemes Fast Track Constable to Inspector Direct Entry Metropolitan Police Service Police Now Force Recruitment Predictions for future numbers Promotion Opportunities Career Pathways and post specific recruitment Police Officer retention Attendance data Morale and Motivation Wellbeing Police Staff context The Impact on Diversity Chapter 4 Findings CHAPTER The College of Policing Chapter 5 Findings CHAPTER Police Reform The Winsor Report The ACPO Position for the Winsor Review Progress on Winsor Recommendations Pay scales A link between pay and skills Changes to bonus payment and allowances

4 6.7 Restricted and Recuperative Duties Other Winsor recommendations with less relevance to pay Pension Reforms Linking contribution and competence to pay Key changes to the PDR Defining and Assessing Competence Future Reform Development of a People Strategy for Policing The College of Policing Leadership Review Chapter 6 Findings CHAPTER The Total Reward Package The impact on the Individual Chapter 7 Findings CHAPTER Regional Pay The London Lead for Inspecting Ranks Chapter 8 Findings CHAPTER Future options for change Adjustments to pay and allowances for 2015/ Appendix 1 - Summary of Collaboration Case Studies Appendix 2 Starting Salaries and Recruitment Appendix 3 Sickness Data Appendix 4 - Regional Allowances

5 Executive Summary This first submission to the Police Remuneration Review Body comes at a time when policing is experiencing significant challenges and is in a period of transition. Although the traditional headline measures for crime are down, the demands on policing have grown in other areas; these are often more complex and serious than the demands they replace. At the same time forces have seen budgets cut and face the prospect of further reductions over the next spending review period. The first PRRB follows a wide-scale review of police officer terms and conditions where recommendations were made about the pay structure, allowances, entry routes and other requirements of being an officer. Many of these have been implemented, but a large proportion of these and other significant reforms are still in transition. This is therefore a time to allow recent change a chance to take effect and for outstanding recommendations to be implemented. The need to just concentrate on an annual pay award and outstanding issues dealing with regional and London pay and allowances is welcomed. However, given the future challenges it is also an opportunity to set out early thoughts about a future model for a reward package for policing that balances the needs of the tax payer, the community, the organisation and the individual. Every police officer has a duty to prevent crime and disorder and protect the public. The range of roles that police officers need to fulfil to meet the current and future demands is wide and continues to grow. As crime becomes more complex and borders disappear, the skills and competence needed by police officers and the ability to operate co-operatively must grow. The College of Policing is currently undertaking an analysis of the demand faced by policing and this will help to better understand how policing and the workforce needs to respond. Police forces receive funding from the government, in the form of a police grant, and through local precept. The proportion of these two sources varies across the country and so, when police grant is reduced at a consistent rate, the impact of cuts is different for each force. Despite seeing an average reduction in grant of 23% over the 4 years to April 2015, forces have responded well to the challenge. Inevitably, when over 80% of budget is staff related, the workforce has reduced. Police officer numbers in England and Wales have reduced by 11% in that period (16,300) and police staff and PCSOs have reduced by 17% and 22% respectively. The financial pressures on police budgets will continue and the announcement in December 2014 of a cash reduction of 5.1% on police grant for 2015/16 was worse than the assumptions used for planning purposes. The predicted budget for 2016/17 (subject to further review after the election) also indicates a 5.06% cash reduction, again worse than the assumption of 3.2% used in financial plans. In terms of pay, most forces have assumed a 1% average pay award for officers in 2015 and 2016 and any increase above that will necessitate further savings from other budgets. A number of measures are considered within this report to assess the impact of police reform on police forces and whether this has affected forces as employers of choice and how it has affected individuals. Although recruitment has been limited in many forces, the number and academic qualifications of applicants is high when forces do recruit. Retention levels remain good, but there are small signs that voluntary resignations have increased and this will need to be monitored as further changes to pay and pensions are introduced. Many officers have traditionally seen promotion as an opportunity for pay progression as well as development, but as the numbers of supervisors reduces and direct entry routes are implemented then a different approach towards 5

6 progression will be needed for some. Attendance levels of police officers have continued to reduce however more work is needed to explore sickness trends. The well-being of staff is becoming an increasingly important responsibility for employers and the service is following the lead in other sectors. The College of Policing has been established as the professional body for policing and has the responsibility for equipping the police workforce with the necessary skills and knowledge for the future. It is currently conducting a fundamental review into police leadership and will report in spring Although issues of pay and conditions are out of scope of the review it is likely that the recommendations will have an impact on the work of the PRRB and will help to inform any future strategy. The Winsor review into policing made 121 recommendations and these provided a framework for the reform of police pay and conditions. Many of these have been implemented as originally intended, some are still being considered and others have been rejected. Whilst the interim report delivered savings for forces (primarily due to a two year increment freeze for officers at all ranks), the recommendations from the full report were broadly cost neutral and any savings were generally reinvested. However, the impact for individuals has been different. Officers not yet at the top of their scale were affected by the increment freeze, others have seen some allowances reduce and new ones introduced. The changes to the constable pay scales mean that officers start at a lower rate but then reach the top pay point quicker. When these are coupled with changes to pension contribution rates (and benefits) it is very difficult to quantify the changes for individuals, as each is different. It is true that the total reward package for individuals is less than expected for most and that this has reduced in real terms for all (as pay awards have been below inflation). The requirement for a satisfactory grade in a professional development review to get an increment rise will create a link between an officer s pay and appraisal. The forthcoming pilots to test foundation and advanced threshold assessments will introduce a link between pay and competence. These two important foundations will support the further professionalisation of policing and ensure that the workforce continues to develop the skills needed for the future. In the final chapter of this submission possible options for a future reward structure are set out that build on the findings through this report, the emerging work of a national people strategy for policing and the principles being used to shape reform for police officers and police staff. In terms of regional allowances, the evidence confirms the variations across the country in terms of pay, employment and cost of living. Having a single pay structure for policing is supported, but the flexibility to apply local uplifts or supplements already exists for officers and needs to be explored further. The London lead for inspecting ranks is the one example where different pay structures exist. When the Winsor review considered this they found little evidence to justify the payment. The demands on the middle ranks in forces will vary across the country dependant on a range of factors, but it is hard to justify the basis for differences without a full analysis of the scale of roles. This is an example where a force should apply a market supplement if justified, rather than have a different pay scale. The pressure on police budgets is great and any pay award will inflate staff costs in future years. However, the pressure on individuals finances has also been increased in recent years and there is a need to consider the balance between the individual, the need to maintain an effective and efficient service and the use of public money. Several options are put forward in chapter 9 that enable the PRRB to consider how a pay award might best meet the challenges set out in this report. Applying a 1% award to all ranks would avoid divisions across the service, be in line with budget assumptions 6

7 and meet government guidelines on pay policy. However, other options are explored that could limit the long term impact on pay costs and target any pay award towards specific groups. In summary this report makes the following recommendations in terms of the immediate issues to be considered by the PRRB: 1. Apply a consolidated 1% increase on all pay points for federated and superintending ranks. 2. Confirm the use of regional allowances (or supplements) to allow flexibility to respond to local requirements. This work will be developed further in future years in tandem with work on the national pay structure for police officers. 3. Maintain an additional payment for the London inspecting ranks at the current rate but differentiate between the basic pay of inspecting ranks and the London lead supplement (which would be reviewed in future years and be subject to local requirements). 7

8 CHAPTER 1 Introduction This is the first submission to the newly formed Police Remuneration Review Body. It contains evidence and information provided by the Association of Chief Police Officers (ACPO), a body that represents the senior leadership of the police service and chief constables as employers, and the College of Policing. This report is prepared on behalf of all 43 police forces in England and Wales, although there will also be a separate submission from the Metropolitan Police Service on London specific issues. The Home Secretary set out the areas that the PRRB are expected to consider in its first year. These were contained in the remit letter, dated 3 rd November This letter was also influenced by the Chief Secretary to the Treasury s letter dated 29 th July regarding the Governments approach to public sector pay for 2015/16. In the remit letter 1, the Home Secretary identified the immediate issues for PRRB as: 1. What adjustments should be made to pay and allowances for police officers up to and including the rank of Chief Superintendent, having regard to the Government s policy that public sector pay awards in 2015/16 average up to 1%. 2. Whether the additional amount paid to the inspecting ranks in the London forces ( the London lead ) should be retained. 3. Observations on the level and scope of existing arrangements for differentiation of police officer pay and allowances at the regional and local level, with a view to making substantive recommendations in subsequent years, with a focus on local labour markets. The Home Secretary also identified a number of issues that were deferred by Winsor for consideration by the PRRB. These included: 1. Review the national on-call allowance. 2. Consider whether to increase the gap between the constable and sergeant pay scales, and between the inspector and chief inspector scales. 3. Consider whether there is a case for the buy-out of sergeants casual overtime. 4. Consider the impact of changes to the management of officers on limited duties, including reviewing the value of the deployment component of the x-factor. 5. Assess the feasibility of attaining a greater degree of coherence between the terms and conditions of police officers and police staff. 1 tary_remit_letter_ pdf 8

9 Initial comments on the above were invited with the intention that a more strategic assessment of police pay and conditions would be completed that will set the agenda for the next five years. Given that this is the first time that the PRRB has operated for police officers (it also considers pay and conditions for the National Crime Agency officers), the Body asked for information that covered its terms of reference. The PRRB requested that shared evidence be submitted wherever possible. The key stakeholders have communicated with each other during the preparation of the evidence and will continue to do so prior to oral submissions. However, the time constraints on the submission period have meant that joint submissions have been more challenging. It is important that any recommendations are supported by evidence. The Police Federation of England and Wales (PFEW) and Police Superintendents Association of England and Wales (PSAEW) have highlighted issues around data availability and quality in their submission and so this report will not cover those issues. It is accepted that PRRB needs to have access to good quality data to inform decision making. The collection of national data is strictly controlled to ensure that it does not place a disproportionate burden on forces. There is no single IT system for the core business support functions across forces and, though standardisation of data is the aim, any requirement for change must be balanced against cost considerations. Police officer pay and conditions are managed at a national level and implemented locally by each force. There have traditionally only been a few allowances that provide different levels of remuneration to officers (regional allowance, housing allowance, London allowance and the London lead for Inspecting ranks). The interpretations of regulations can, on occasion, cause differences between forces but steps are taken to ensure that there is a fair and consistent approach to pay and conditions. Over the last few years forces have found themselves facing significant challenges to meet the financial pressures on budgets. This has started to raise questions about the potential for greater local flexibility within a national framework. These issues will be explored in the economic context (chapter 3) and regional issues (chapter 8). There is no expectation that this will be addressed in the first year and that more evidence and time to accurately reflect the views of all chief constables will be required. This should then form part of the longer term agenda for reform. 1.1 The role of the police The modern police service was founded in 1829 by Sir Robert Peel and the principles set out by him almost 200 years ago are still valid to this day. They set out the basic mission for which the police exist, namely to prevent crime and disorder and to protect the public. In order to perform this duty, the police are provided with powers beyond those of a normal member of the public. The trust in the police relies on the careful execution of these powers. The Code of Ethics, published by the College of Policing in 2014, sets out the high standards that are expected by those who serve the public Further commentary about the role of the police can be found in the report Policing for a Better Britain led by Lord Stevens

10 1.2 The structure of policing There are 43 Home Office forces in England and Wales, varying in size from the Metropolitan Police Service to Warwickshire. The force structure has remained largely unchanged for the last 40 years, when the last amalgamation of some city and county forces took place. Mergers were explored by the last labour government, but the proposals were not pursued. A significant factor behind the lack of progress was the difficulty around equalising local funding across two or more forces Each force has a Chief Constable (or a Commissioner in the case of the Metropolitan and the City of London forces) who has overall responsibility for the operational and employment decisions. In November 2011, Police and Crime Commissioners (PCC) were introduced to hold Chief Constables to account for performance and spending (this function is exercised by the Mayor in London and by the City of London Corporation for the City). All police officers come under the direction and control of the Chief Constable/Commissioner, however police staff can be employed by either the Chief Constable or PCC. The reality is that most staff across the country are employed by the chief constable Collaboration across forces has played an increasing role in recent years. This has enabled forces to improve operational capability and resilience and to reduce costs. One consequence of collaboration is that officers now find themselves working alongside colleagues from different forces. This can cause difficulties if the interpretation of terms and conditions is different or would cause problems if there was a move away from a national framework. Examples of collaborated units are provided in Appendix At a sub-force level, local policing has generally been delivered by structures that are coterminous with local authority partners (Basic Command Units, Divisions, Boroughs or Local Police Areas being some of the names to describe these structures). The scope of these units can vary across forces, and has seen considerable change in recent years in response to financial pressures (see chapter 3) but they generally include neighbourhood policing, response and a local investigation function. The size of the units can vary considerably (to over 1000 in London Boroughs to less than 100 officers in many forces) Forces deliver the many specialist operational functions and those activities that benefit from economies of scale at a force or collaboration level. (For example intelligence functions, child abuse investigations, firearms units). The Metropolitan Police are also responsible for delivering several national functions and these, and other London specific issues, are expanded on in their separate submission The rate of change around the structure of police delivery has intensified in recent years to meet the changing nature of demand, the financial pressures and partnership structures. The ability to flexibly deploy police officers, given their employment status, enables such changes to be achieved. 10

11 1.3 Police officer roles and responsibilities Until recently all police officers entered the service as constables and spent a probationary period of two years learning the basic functions of a police officer, primarily within the operational response role. (See chapter 4 for different entry routes to policing and career paths). Thereafter officers can perform a wide range of roles, can be promoted and can be seconded to other organisations. Although the basic requirements of being a police constable are consistent across all posts, the range of additional skills, qualifications, competencies and behaviours that are needed is extensive. Forces do not generally use job descriptions for police officer posts but refer to the Police Professional Framework to specify the requirements for a role A Chief Constable has the ability to require an officer to work in a particular role to meet organisational or operational needs. The best example of this is the demands that were placed on policing during the summer riots in 2011 and the Olympics in 2012 where officers were required to deploy to different parts of the country (sometimes at short notice in the case of the riots). 1.4 The office of constable Police officers are servants of the crown and hold the independent office of constable. They are not employees and are not in an employment contract. The pay and conditions of police officers are governed by legislation. Police officers have various restrictions place upon them. These include: No right to strike Restrictions on their private lives and conduct, which include: o No membership of a political party o Business interest regulated o Restrictions to where able to live Requirement to obey a lawful order It is therefore important that the pay and conditions of police officer maintain a fair balance between the restrictions placed upon them, the danger that they might face and the benefit that they enjoy. The Reward package is described further in chapter 7. Maintaining a flexible workforce will be essential in the future to ensure that forces can meet both short term and long term demands. 11

12 1.5 The broader police family Over recent years policing has been delivered by a wider range of staff groups. Police staff play an increasing role in the delivery of organisational and operational support and, in PCSOs, are part of the visible presence in neighbourhoods. In some functions, for example police control rooms, there are often police officers and police staff sitting next to each other, performing the same role but bringing different experiences and skills to ensure that the service is both effective and resilient. Police staff can also be accredited with a range of powers that enable them to perform roles previously restricted to police officers (for example designated case investigators). Police staff terms and conditions and associated reform are considered further in chapter The numbers of volunteers in policing has increased since Special Constables are trained volunteers who have the same powers as officers and wear virtually the same uniform. They support policing in a wide variety of ways, often bring valuable additional skills and provide a vital link to the community. Forces also recruit a range of other volunteers to support policing, for example running police information points, assisting with administrative tasks etc. 1.6 The future of ACPO The Association of Chief Police Officers (ACPO) brings together the expertise and experience of chief police officers from the United Kingdom, providing a professional forum to share ideas and best practice, co-ordinate resources and help deliver effective policing which keeps the public safe. On 1 April 2015 ACPO will be replaced by a new co-ordinating body, the National Police Chiefs Council, which will better reflect the new landscape and the needs of the service ACPO has in the past set standards, policy and guidance for the service; this responsibility has transferred to the College of Policing. The new body will enable operationally independent and locally accountable chief constables to co-ordinate the work of the police service in order to protect the public. It will focus on operational coordination and working with the College of Policing to develop national approaches on issues such as finance, technology and human resources (for example pay and conditions) ACPO s core role of bringing together the expertise of police leadership to coordinate operational policing and agree national approaches in the public interest will be transferred into the body. However, the new body will be modernised and improved with a governance structure that ensures accountability; hosted by a police force rather than a company limited by guarantee and a membership of forces rather than individual chief officers Chief constables will represent their force perspective at Chief Constables Council, drawing on the efforts and experience of the chief officers in their team and subject matter leads, as the volume and complexity of the work over the course of the year would be too much for chief constables alone. The new body will not be a membership body per se but all chief officers will have the opportunity to shape and lead work being developed on behalf of the new body. 12

13 The body will have the following functions: Co-ordination of national operations including defining, monitoring and testing force contributions to the Strategic Policing Requirement. Command of counter terrorism operations and delivery of counter terrorist policing through the national network as set out in the S22A agreement. Co-ordination of the national police response to national emergencies and the mobilisation of resources across force borders and internationally. National operational implementation of standards and policy as set by the College of Policing and Government. Working with the College, development of joint national approaches on criminal justice, value for money, service transformation, information management, performance management and technology. Working with the College (where appropriate), development of joint national approaches to staff and human resource issues (including misconduct and discipline) in line with Chief Constables responsibilities as employers. 1.7 Chapter 1 Findings a) Collaboration between forces has increased in recent years in response to financial pressures and the opportunity to improve operational capability and resilience. b) The structures of forces vary and have undergone considerable change in recent years. c) Although the basic role of the constable is the same for all, officers perform a wide range of functions and require different skills and competences. d) Police officers can be deployed anywhere in England and Wales (and other areas in certain circumstances) in response to planned or spontaneous incidents. e) Police officers have several conditions that restrict both their personal and professional lives. f) ACPO will be replaced with the National Police Chiefs Council on 1 st April

14 CHAPTER The Operational Context The most recent Crime Survey for England and Wales 3 suggests that crime is at its lowest level since the survey began in The annual figures from the survey for the 12 months to June 2014, showed a 16 per cent fall on the previous year s survey. Police recorded crime data 4 tells a similar story, with crime at its lowest level since the mid 1990 s Reports of anti-social behaviour have also declined over the last year. In 2013/14 there were 2.1million incidents of anti-social behaviour, this represents a 7 per cent reduction from 2012/13 5. Although the headline figures show an overall decrease in recorded crime, analysis of force crime data suggests that recorded crime in some parts of the country is increasing. Analysis of force data for the 12 months to June 2014 shows that 24 forces have seen an increase 6. However, there are probably several reasons for this increase, including higher levels of compliance with crime recording standards, greater confidence in reporting certain categories of crime and genuine increases in new crimes Despite reductions in crime and anti-social behaviour in recent years many officers report that they are as busy as ever. The College of Policing has therefore been commissioned to research the demand on the Police Service. This work was not complete in time for the written submission deadline but will be provided to the PRRB when available One of the issues for policing is how to describe the demand that it faces. Police recorded crime can provide a measure of demand but it does not include demands that do not result in a recorded crime (for example road traffic collisions, fear for welfare, calls for service etc) and it masks changes within crime types that can have a disproportionate impact on police resources (for example a reduction in criminal damage offences could mask significant rises in rape allegations) The demands on the police can be grouped into two distinct categories: Public demand mainly covering calls for service or incident to which the police respond. Protective demand more proactive work which the police are required to undertake, mainly connected to safeguarding the public Protective demand is unlikely to be captured by traditional data gathering and the allocation of resources to both demands will vary

15 2.1.7 Early findings from the demand work suggest that: The complexity of crime is increasing the number of defendants fined at Crown Court is higher than 10 years ago. o Reporting of sexual offences has risen dramatically since several high profile cases. o Reports of child sexual exploitation have risen. o Fraud reporting has increased by 34% in the 12 months to September o The National Crime Agency National Strategic Assessment 7 highlights the risk of human trafficking and modern slavery. o Technological change has seen a fundamental shift in how some crime is committed. The Home Office research Cyber Crime: a Review of the Evidence 8 highlights the scale of the problem. o The threat posed by organised crime groups (OCGs) has increased with an estimated 5,500 active OCGs operating against the UK, compromising 37,000 people. The volume and type of non-crime incidents is changing. o Although incident levels have reduced, the decline is greater in crime related incidents rather than non-crime incidents. o Incidents classified as public safety and welfare are increasing (for example incidents relating to mental health, missing persons etc). The protective demands on policing appear to be more significant. o Multi Agency Public Protection Arrangements (MAPPA) place a statutory responsibility on the police and other agencies to protect the public from serious harm by sexual and violent offenders. MAPPA offenders have increased by a third in the last 5 years 9. o Non-statutory work to protect the vulnerable has increased (for example the number of Multi Agency Risk Assessment Conferences, that protect high risk victims of domestic abuse, have increased by 17% from 2011/12 to 2012/13) The changing nature of demand, in particular the increase in complexity and rise in protective work, has seen significant shifts in the responsibilities and capabilities of all officers. Whether it is protecting the vulnerable or tackling cybercrime, this work is not the preserve of the specialist officer. Every police officer needs to have an understanding of these new and summary.pdf

16 growing challenges and to have the capability to respond. However, the increasing technical and specialist nature of some elements of this demand also requires officers with high levels of skills and training to effectively respond. 2.2 The Prioritisation of Demand The responsibility for setting the police and crime objectives for an area rests with the Police and Crime Commissioner (PCC). The PCC answers to the public on the delivery and performance of their force and therefore must consult with the public and with the chief constable when setting the aims of the force in their areas. The PCC publishes a Police and Crime Plan which sets out their objectives and how they will be achieved Although the PCC and Chief Constable have responsibility for policing in their area, they also have a responsibility to contribute to national policing. The Strategic Policing Requirement 10 sets out the capabilities that forces are expected to have in place to protect the public from serious harm and maintain national security. This ensures that when officers and staff are required to deal with a national threat or incident, there are sufficient people who are trained and equipped to a consistent level. The use of mutual aid to support forces at times of need is a well rehearsed process (for example in planned events, spontaneous response to unplanned events and to support complex and lengthy investigations). The ability to brigade officers will become increasingly important to maintain a resilient police service at times of reduced budgets. This does have implications in terms of pay and conditions when officers are expected to work together for extended periods. 2.3 Chapter 2 Findings a) Traditional measures for crime have shown significant reductions. b) The College of Policing is researching police demand and this will be available in due course. c) New and emerging demand for policing appears to be more complex and requires higher levels of skills and training. d) All officers need to have a basic understanding of new and emerging demand in order to provide an initial response. e) It is likely that forces will need to provide more mutual aid to other forces as budgets contract. f) The need for officers from different forces to work together has implications for the consistency and fairness of pay and conditions for police officers

17 CHAPTER The Economic Context Police forces in England and Wales receive funding from two main sources the Home Office (central government police grant) and the police precept component of the local council tax 11. In recent years the number of sources of funding has changed (as the police no longer receive funding via the Department for Communities and Local Government, instead all is routed via the Home Office) and the restrictions on some budgets have been relaxed (for example requirement to spend a specialist grant on Police Community Support Officers has now been consolidated into main grant without restrictions). In addition to government grant and police precept, Police and Crime Commissioners are able to generate income from charging for policing commercial events. Other income to forces is generally limited and covers the cost of providing additional services The level of police precept as a proportion of total budget varies considerably across forces (from 14% in Northumbria to 52% in Surrey). The rate of police precept was historically determined by Police Authorities and some took decisions, during the last decade, to increase local funding for policing by considerable amounts. In recent years the opportunity for Police and Crime Commissioners to increase police precept has been capped The police grant is allocated to forces in line with the Police Allocation Formula (PAF) 12. The PAF uses data from various sources (such as incident levels and population density) to share money between forces. It is not a calculation of absolute need but shares out the money designated for policing between forces based on relative need. The allocation is then dampened by applying floors and ceilings to the proposed budgets. A review of PAF has been proposed for several years as there are some concerns about the validity of the current mechanism. However, this will not take place until after the next general election and the process of moving from one system to a new one will be difficult to achieve, given that there are likely to be winners and losers. In 2014/15, the police grant represented over 8bn (with over 2bn being allocated to the Metropolitan Police Service and 56m to Warwickshire) Police forces have been required to reduce budgets by 2.53bn 13 (or just under 20% in cash terms which equates to 23% in real terms) over the spending review period. The level of reductions varies across forces (as the savings to police grant were allocated at the same rate to all forces, this had a differential impact on total force budgets when precept is included). The estimated savings requirement for forces as a proportion of 2010/11 gross revenue expenditure ranged from about 10% for North Yorkshire to about 27% for Warwickshire State of Policing the Annual Assessment of Policing in England and Wales 2013/14 by HMCIC Tom Winsor 17

18 3.1.5 Forces developed savings plans to deliver the cuts to budgets. Although every force has developed slightly different plans (based on individual circumstances, including historical allocation of funding) all forces have worked hard to prioritise savings in goods and services while seeking to protect police officer and staff posts. Twenty-nine per cent of planned savings come from non-staff costs even though these areas represent only 20% of police s overall costs (see HMIC Valuing the Police 4 report 14 ) Although forces have limited the savings needed from workforce budgets there have, inevitably, been reductions in the numbers of staff. The planned workforce reductions between March 2010 and March 2015 are: England and Wales Police Officer March 2010 FTE (actual) 143,700 March 2015 FTE (planned) 127,500 Total Change (planned) 16,200 Percentage Change (planned) -11% Police Staff 83,200 68,700 14,500-17% PCSOs 16,900 13,300 3,600-21% Total Workforce 243, ,500 34,300-14%

19 3.1.7 Police forces were recognised for the work that they have done to protect the front line from the effects of the cuts. However, despite this the number of people (officers, staff and PCSOs) working on the front line will have reduced by approximately 14,900 by March 2015 (a decrease of 8%). The number of officers will reduce by 8,500 (a decrease of 7%). However, given that the numbers of staff reduced in other areas is greater, it means that a greater proportion of the workforce is on the front line (from 74 percent to 78 percent for all staff and from 89 percent to 92 percent for officers) Forces have delivered savings in a variety of different ways including: Reducing non pay savings (contract renegotiations, collective procurement, controlled purchasing, estate and fleet management, IT savings). Pay savings including pay restraint, reductions in overtime and the implementation of the Winsor reforms. However, the vast majority of savings in pay have come through reductions in workforce numbers The workforce reductions have been managed by: Workforce modernisation ensuring that forces have the right mix of officers and staff. Structured reform of business units, balancing the need for local delivery with economies of scale. Collaboration (with forces and other partners) particularly in relation to specialist operational functions. Changing the rank profile in forces reducing more senior management posts (including in Wiltshire where the Chief Inspector and Chief Superintendent ranks have been removed). 3.2 Changes to Police Officer numbers by rank Full-time equivalent Number 31/03/10 Number 31/03/14 Chief Officers Chief Superintendent Superintendent Chief Inspectors Inspectors Sergeants Constables ,031 1,975 7,242 23, , ,779 5,930 19,767 99,107

20 3.2.1 In the same way that forces have seen a different impact on their total budget, forces have also seen significant variations on the reductions of planned workforce between March 2010 and March As at March 2014 the position was as follows: Estimated planned workforce reductions between March 2010 and March 2015 force by force (as of March 2014) The above chart shows that there have been reductions in all ranks. The greatest percentage reduction has occurred in the Superintending ranks (a loss of 380 officers, equivalent to 25% from March 2010 to March 2014) The above chart only includes police officers and it is possible that with some workforce modernisation the supervision ratios could have changed either way (this detail is not readily available to test). However, staff associations have raised concern about resilience at certain ranks (particularly given the specific legal requirement and operational responsibilities to maintain operational effectiveness)

21 3.3 The Future of Police Funding The Autumn Budget Statement in 2014 presented by the Chancellor of the Exchequer set out the prediction for the economy and the proposals for public sector spending. Since then the other main political parties have also outlined their proposals. Although the exact detail will not become clearer until after the General Election in May 2015 and then the Comprehensive Spending Review (CSR) in the summer of 2015, there is no doubt that austerity measures will continue for the next 3 5 years. What will vary will be the pace, scale and priorities, depending on the make-up of the next government On an annual basis forces publish a Medium Term Financial Plan (MTFP) that covers, as a minimum, the proposals for the next three years. These are based on the information that is available at that time and on assumptions where information is not available. The details about the two key sources of funding are only available towards the latter part of the financial year (the police grant is announced at the end of December and council precept is finalised in mid-february). Forces therefore have to make plans about budgets that only have a degree of certainty for a single year. Given the election in 2015 and greater uncertainty beyond that point, the clarity about police budgets after 2015/16 is more difficult to predict. As a consequence forces have been encouraged by the Home Office and HMIC to use the same assumptions around police grant for 2015/16 and beyond (5% real term reduction and 3.2% actual reduction per annum) However, it was feared that these figures could change significantly if the Home Office was required to make larger savings than other government departments. The police grant settlement announced in December equated to a reduction of 5.1% in cash terms compared to 2014/15. The Home Office top sliced additional sums of money to support national initiatives (Independent Police Complaints Commission, national infrastructure etc). It is likely that all forces will need to adjust their MTFPs in light of these changes and amend previous assumptions and identify new savings, or bring forward future savings plans. The budget reductions for 2015/16 have also increased to an estimated cash reduction of 5.06% of police grant (compared to an assumption of 3.2%) This will inevitably result in greater staff losses (in fact one large metropolitan force has already adjusted plans to reduce police officer numbers by an additional 200 more than their MTFP over the next three years) Given the proportion of police budget that is allocated to pay, the assumptions that forces make around pay increases are important. If the pay awards differ from the assumptions then this can have an in-year impact on budget, as pay awards are implemented in September. The Chancellor s announcement in the Budget that public sector pay awards will be limited to an average of up to 1 percent in 2015/16 has helped to inform the budget setting process In terms of pay several assumptions for the future the below chart sets out the figures currently being used by forces (26 forces responded to the request for information) Home-PoliceGrant.pdf 17 ete.pdf 21

22 FORCE Pay Award Assumption by force Avon & Somerset 1% 1.5% 2% Cheshire 1.6% 1.6% 1.6% City of London 1% 1% 1% Cleveland 1% 1% 1% Cumbria 1% 1% 1% Dorset 1% 2.5% 2.5% Durham 1% 1% 1% Essex 1% 2% 2% GMP 1% 1% 1.875% Hertfordshire 1% 1% 2% Humberside 1% 1% 2% Kent 1% 2% 2% Lancashire 1% 1% 1% Leicestershire 1% 2% 2% Merseyside Met Norfolk Northants North Wales South Wales South Yorks Suffolk Surrey TVP West Mids West Yorks 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 2.5% 2.5% 1% 1% 1% 1% 1% 1% 1% 2% 2% 1% 2% 2% 1% 1% 1% 1% 1% 1% As can be seen from the above, only one force has assumed a pay award above 1% in 2015 and the majority have assumed an average pay award of 1% in

23 3.3.7 The MTFP provide planned estimates for the number of police officers, police staff and PCSOs are also included. However, they should be used as a guide only as the assumption can change and, if the budget has not yet been balanced, then the numbers of workforce reductions could increase as savings work is completed. The most recent workforce reductions for the different categories of staff from 2014 to 2017 are provided in Chapter 4 on the Workforce Context The MTFP also includes details about changes to overtime budgets for police officers (which equates to 4% of police officer pay expenditure), these demonstrate that these have reduced and will continue to reduce in future years. The use of overtime can provide a very flexible way to use resources, if targeted effectively. The reduction in overtime will also have an impact on individuals (given the cumulative impact of pay restraint, loss of allowances etc. see Chapter 7). The below chart indicates the actual and likely reduction in overtime (the data was provided by 26 forces prior to the police grant announcement in December 2014). Police Officer Overtime Budget FORCE 2011/12 (Actual) 2014/15 (Actual) Reduction(%) 2011/12 to 2014/ /18 (Estimate) Reduction(%) 2011/12 to 2017/18 Avon & Somerset 6,188,102 5,032,700 19% 5,000,000 19% Cheshire 6,930,800 2,978,758 57% 3,057,030 56% City of London 2,192,312 1,906,519 13% 1,754,223 20% Cleveland 2,023,000 1,354,000 33% 1,444,000 29% Cumbria 1,767,300 1,643,900 7% NK NK Dorset 2,890,933 2,270,000 21% 2,395,800 17% Durham 2,900,000 1,900,000 34% 2,100,000 28% Essex 6,285,741 6,432,054-2% NK NK GMP 23,107,161 13,747,426 40% 14,531,932 37% Hertfordshire 4,699,622 4,247,676 10% NK NK Humberside 5,119,162 4,175,500 18% 3,543,219 31% Kent 6,230,000 5,620,000 10% NK NK Lancashire 3,796,151 2,924,797 34% 2,005,297 47% Leicestershire 4,193,237 2,515,843 39% 2,397,959 43% Merseyside 9,269,000 5,500,000 41% 5,500,000 41% Met 148,800,000 93,000,000 38% 78,000,000 48% 23

24 Norfolk 3,147,454 2,287,000 27% 2,337,000 26% Northants 1,152,609 1,500,498-30% 1,304,861-13% North Wales 3,121,911 2,132,580 32% 1,827,812 41% South Wales 6,700,435 8,259,968-23% 4,954,483 26% South Yorks 7,853,890 5,365,094 32% 4,855,292 38% Suffolk 2,084,172 1,536,000 26% 1,576,000 24% Surrey 4,522,600 3,778,100 16% 3,854,000 15% TVP 7,830,000 6,450,000 18% 6,520,000 17% West Mids 20,440,300 11,540,500 44% 11,089,000 46% West Yorks 11,645,000 7,761,000 33% 6,100,000 48% It can be seen from the above chart that although 3 forces increased the overtime budget between 2011/12 and 2014/15, the majority saw significant reductions ranging between 7% (Cumbria) and 57% (Cheshire). It should be noted that higher levels of overtime in 2011/12 could have been due to pre-olympic spend. The size of reduction for future years (up to 2017/18) is less which suggests that forces have reached the lower limit for overtime budgets. 3.4 The impact of austerity on forces Forces have already delivered significant reductions in budget and will be required to make further reductions in future years. The question of the impact of these on policing is now being considered in a number of different groups (HMIC National Advisory Debate Group and Home Office Future Police Funding Group). It is also being played out in the media as a result of a number of contributions, for example by the Chief Constable of Lincolnshire 18 and the Commissioner of the Metropolitan Police Service 19. Given that staff costs represent over 80% of total budget spend then further reductions will have a significant impact either on the number of staff employed or the way that they are paid Lincolnshire-Police-Chief-Constable-Neil-Rhodes.html

25 3.5 Predictions for the UK labour market The latest commentary on what might be expected to happen in the UK labour market in 2015, based on economic forecasts already in the public domain, was provided by the CIPD s chief economist, Mark Beatson. The report 20 raises the following issues: The UK can expect economic growth of around 2.4% in 2015 slightly lower than in Employment might grow by about half a million in 2015, slightly more than the Office for Budget Responsibility (OBR) forecast. Wage growth is likely to remain in the 1-2% range for most or all of 2015, although lower inflation might mean that real earnings increase slightly. No significant increase in wage growth can be expected until 2016 and even then is not guaranteed. Employers need to raise their productivity and that includes developing their workforce before skill shortages mount. Productivity should again be the focus of economic policy during Chapter 3 Findings a) The Government police grant to forces has reduced by 23% in real terms over the course of the Comprehensive Spending Review. b) The impact on forces varies depending on the proportion of force budget supported by local precept. c) Given that over 80% of budget is spent on pay, it is inevitable that cuts will impact on workforce numbers. d) The number of police officers in England and Wales has reduced by 11% over the CSR. e) HMIC assesses that forces have responded well to the financial constraints. f) The majority of forces have assumed a pay award of 1% in 2015 for police officers and the same again in 2016 (although a few have assumed higher increases). g) Any award above the assumption (of 1%) would necessitate greater savings, any award below would relieve pressures on budgets and avoid the need for savings in other budgets. h) Overtime budgets have reduced over the CSR period in the majority of forces with some seeing significant reductions

26 i) The announcement in December 2014 reduced police grant by 5.1 % in 2014/15 and estimated a reduction of 5.06% 2015/16 in cash terms (compared to assumptions of 3.2% p.a.). This is likely to result in more staff losses than predicted. CHAPTER The Workforce Context Information about the workforce is collected on an annual basis by the Home Office 21 and as part of the data collection for the Valuing the Police inspection by HMIC 22. Headline figures from Home Office data shows that police officer numbers, having increased up to 2009, have seen year on year reductions since that time. The Metropolitan Police had the most officers, accounting for 24.2 per cent of all officers across the 43 forces on 31 March The 8 metropolitan forces (City of London, Greater Manchester, Merseyside, Metropolitan Police, Northumbria, South Yorkshire, West Midlands and West Yorkshire) comprised 47.8 per cent of all officers. Figure: Change in the number of police officers, as at 31 March 2005 to 2014, compared with the previous 12 months, England and Wales

27 4.1.2 However, the change in police officer numbers in the last 12 months has been different across the country. Officer numbers in the 43 police forces rose in the last 12 months in the following 10 forces: Cumbria; Devon and Cornwall; Dyfed-Powys; Merseyside; the Metropolitan Police; Norfolk; North Yorkshire; Nottinghamshire; Suffolk; and Thames Valley. Of these, Nottinghamshire (63 officers or 3.0%) had the largest increase in percentage terms, whilst the Metropolitan Police had the largest numerical increase (534 officers or 1.8%) Officer numbers decreased in the last 12 months in the remaining 33 forces. Bedfordshire (-73 officers or -6.7%) fell the most in percentage terms, whilst West Midlands Police (-327 officers or -4.3%) experienced the largest numerical decrease It should be noted that some changes can occur when regional or collaborated units are established hosted by one force and officers are transferred from neighbouring forces (for example the establishment of Regional Organised Crime Units in some areas saw staff transferred to the host force). 27

28 Figure: Police officers, percentage change between March 2013 and March 2014, England and Wales More detailed commentary on key areas will be considered in later sections of this chapter. It has already been noted that the availability and quality of some national information needs to be addressed, however this must be balanced against the data burden on forces. The collection of national data is strictly controlled and any requests must now be agreed through a gateway process. Where data is more limited then additional requests have been made to forces to provide a snapshot of a selection of forces. The assessment of headline data, not covered in future sections, suggests the following: Age/service profile - the statistics will not come as a surprise given the limited recruitment in recent years, a profile which reflects an ageing workforce and longer serving officers. However, just 1.1% of officers are aged over 55 and just one quarter of officers have 20 years service, or more. 28

29 Police officer ill health retirements - the rate of ill health retirements appears to have levelled recently, however it has more than doubled in the last 5 years. There is a view that the level will remain high due to an ageing workforce and no change to the definition of permanence. Representation in the workforce - there seems little evidence to suggest a sea-change to in improving workforce representation and, with low levels of police officer recruitment, there are unlikely to be significant changes in the short term future. 4.2 Police Recruitment The entry routes to policing were considered by the Winsor review and the findings and recommendations were set out in Chapter 3 of that report 23. At that time the only entry point into policing was at the rank of constable, that position has now changed (see chapter 4). The number of applications and quality of recruits can provide an indication as to the attractiveness of policing as a career The College of Policing is now responsible for setting the minimum standards for police officers, however chief constables are able to decide how they recruit and apply higher standards. The College runs the national assessment centre for new recruits (SEARCH) 24 and all candidates must pass this before being eligible for appointment as a police constable. The eligibility standards for recruitment are set out in a number of Home Office Circulars. These cover medical 25, eyesight 26, biometric vetting 27, fitness 28 and entry qualifications 29. The last of these were amended in November 2013 as a result of the Winsor review so that now all police officers are required to have a Level 3 qualification, or prior experience as a PCSO / Special Constable or a policing specific qualification The introduction of the Certificate in Knowledge of Policing (CKP) was introduced in April 2012 to provide a pathway for police officers to complete some of their training prior to joining 30. The CKP gives candidates an official qualification and allows future police officers to take responsibility for their learning and can be used as evidence for the Diploma in Policing. A few 23 report/report-vol-1?view=binary

30 forces are now making achievement of CKP a local entry requirement. The advantage for forces is that they will be able to reduce the amount (and cost) of classroom based training provided to new recruits. The impact on applicants from under-represented groups is being carefully monitored and schemes to support individuals with additional funding are being explored The number of candidates that have successfully completed the CKP qualification to date through a College of Policing Pre-Join Approved Provider is 4067, with 2859 currently undertaking the qualification and an estimated 1276 likely to enrol in the remainder of 2014/15 financial year The College of Policing Professional Entry to Policing Pre-Join Strategy and Guidance 31 provides an overview of the CKP qualification and also explains the Pre-Join Approved Provider Scheme referenced above Some forces are also working with academic institutions and the use of foundation degrees. Individuals are typically required to undertake their two year academic work and at the same time perform the role of special constable. The combination of the academic and practical achievements means that individuals, if successful, join the service requiring less supported training. This shifts the burden from forces to individuals, but in return, provides a more certain employment opportunity upon graduation. 4.3 Analysis of Recruitment Data Recruitment has taken place in around 75% of forces in England and Wales since Where data is available on force websites and in local media, it shows an average of 17 applicants for each constable post (compared to 14 applications per vacancy in the NHS; 48 per vacancy for the Civil Service Fast Stream; and a range of around per vacancy in the graduate jobs market). Although the ratio of applications to posts is lower than in some other sectors, supply continues to outstrip demand in every case and each recruitment round generates significant local interest. It is important to ensure that the quality of candidates, as well as the quantity, is sufficient now and into the future The College of Policing holds data on the number and background of all applicants for the SEARCH assessment centres and the success rates for those that pass. The last few years have not been typical in terms of the numbers and routes that forces have chosen, given the financial pressures on workforce numbers. The below provides an analysis of the results for all Police SEARCH Recruit Assessment Centres taking place from 5th November 2012 to 31st October Overall candidates have been assessed. The national success rate was 84.1% (16946 candidates successful) The records indicate that 11.5% (2312) of candidates were from a Minority Ethnic Group (MEG). 65.1% (1506) of MEG candidates were successful compared with 86.6% (14282) of White candidates. This data shows a difference of 21.5% between the pass rates for MEG 31 Published by the College of Policing in September 2013, version

31 candidates as a whole compared to the White majority. The pass rates of MEG candidates as a whole compared with the White majority does not exceed the adverse impact threshold of 80% (75%) The majority of candidates were male (68.4%), 31.6% were female. Overall, female candidates have a higher success rate than male candidates (87.1% versus 82.7%). Candidates who indicated their age was between years had the greatest representation (45.2%). Candidates who indicated that their age was years had the highest success rate of 87.0%. 27.8% and 16.6% of candidates indicated that they were Special Constables or PCSOs respectively. Special Constables had a success rate of 89.3%, compared to 90.6% for PCSOs In terms of the qualifications of those who applied the highest academic level that was selfreported by the applicants, for the same period, was: Academic Qualification Numbers Percentage Postgraduate % Graduate % A Level % GCSE % No formal qualification % Not stated % Total The above table shows that almost 80% of applicants to the police have a minimum qualification of A-level standard. 4.4 Fast Track and Direct Entry Schemes The police service has operated a scheme to support officers who demonstrate the potential to be senior leaders for many years. The most recent High Potential Development Scheme (HPDS) 32 was introduced in 2002 to replace the Accelerated Promotion Scheme. It was designed to enable officers to meet the challenges of senior leadership in the police by giving them operational credibility, management skills and strategic awareness. The final version of the scheme was open to constables and sergeants and successful applicants took part in a five year programme of professional and academic development. When an officer demonstrated that he / she was competent in the next rank then they were promoted The National Policing Improvement Agency introduced an HPDS (graduate) in 2009 which identified new recruits to policing who had an upper second class honours degree and who had the potential for senior leadership. The scheme ran for only one year, primarily due to the impact of austerity and limited recruitment, and the numbers of successful officers was in single figures

32 4.5 Fast Track Constable to Inspector Fast Track is an accelerated three-year promotion and development programme which gives the most talented graduates the skills, knowledge and experience to advance to the rank of inspector from police constable within three years. The scheme is open to both current constables who meet the eligibility criteria and non-police officers. The latter group complete their initial training over a year and then join the internal cohort Fast Track External 33 By December 2014 more than 600 people had applied for the Fast Track programme in forces across England and Wales which will see exceptional candidates reach the rank of inspector in three years The programme, which is open to police staff, graduates and police specials to apply, has received 657 applications across 26 police forces Of those, 361 are male and 296 are female. This includes 55 black or minority ethnic candidates Fast Track Internal 34 By December 2014 more than 500 internal candidates had applied for the fast track programme. Of this number 180 will be selected to go forward to the assessment centre in early 2015 with the top performing 80 candidates being selected. 4.6 Direct Entry The Direct Entry (Superintendent) Programme ran for the first time in It is designed to attract highly talented leaders from outside policing to come into the police service at a senior rank, bringing fresh perspectives and new ideas. Candidates will be trained over 18 months, and given coaching and mentoring, to equip them with the skills to excel as superintendents There were 888 applications for 19 direct entry superintendent posts across the seven forces taking part 35. This equates to about 47 applicants for every post. When the process was complete there were 9 successful candidates that will join 4 forces Metropolitan Police Service Police Now Developed through the Metropolitan Police Service s Commissioner s 100 programme by frontline officers, the mission of Police Now 37 is to transform the most challenged

33 communities, reduce crime and increase the public s confidence in policing by recruiting and developing outstanding and diverse individuals to be leaders in society and on the policing frontline. The programme was launched during October 2014 by the MPS and, as part of the programme s pilot year, 50 participants will join the programme during the summer of Policing has too often been dismissed, or simply left unconsidered, as not providing a suitable career for significant numbers of the very best graduates with high aspirations. To transform policing the MPS recognised the need to transform this perception in order that the brightest of UK graduates see policing as being on a par with other professions such as the law, medicine, finance and commerce Fundamentally different to current methods of recruitment and attraction to the police service, police now attempt to emulate the success of Teach First. Police Now has the potential to contribute to the transformation of some of the most challenged communities and the police service that serves them by attracting a different type of recruit into policing. The MPS is now seeking to explore the potential for expanding the Police Now programme to other forces for the 2016 programme, which will start recruiting in the autumn Force Recruitment Forces control the levels of recruitment based on workforce numbers and predictions, based on budgets and wastage levels (leaving through retirement, dismissal, transfer etc.). Traditionally forces have been able to predict wastage levels with reasonable accuracy, given the current pension arrangements, however the new 2015 pension scheme and any changes to retention levels are likely to make that more difficult in the future Forces are also able to set the starting salary for new recruits within a range from 19,000 to 22,000 based on qualifications, experience or other local factors (for example market salary levels) Forces were asked to provide information about recent recruitment, future recruitment, salary levels and retention. Twenty-two forces responded to the request and details about starting salary were obtained from force websites. Although not complete, the response provides a good picture of recent and future police recruitment that supplements national, historic data. The data is included at Appendix 2. The data indicates the following: Forces have experienced very different recruitment levels in from April 2013 to September 2014 with MPS recruiting over 3600 and Durham and Dorset not recruiting any police officers. The levels are not based solely on size (West Yorkshire has seen limited recruitment) or geography (North Wales has recruited over 100 officers and Gwent only 24). At the time of the request for information most forces intended to recruit in early 2015 and then into 2015/16 (however these predictions were before the government grant settlement for policing in December 2014). The data provided for 2015/16 looked more encouraging for most forces

34 Where past recruitment numbers were low, forces appear to have restricted applications to internal staff (Police staff, PCSOs and Special Constables). Where campaigns have included external applicants then interest appears to have been high. Forces appear to open campaigns for a limited time or cap the number of applications at a specific level (for example Nottinghamshire only processed the first 75 applications in 2014/15). Fifteen forces use a starting salary range of between 19,000 and 22,000 based on skills and experience (based on national guidance). All other forces start either at the maximum level or close to the maximum (for example 21,500). There does not appear to have been any significant change to the numbers of officers leaving prior to pensionable age (on a voluntary basis). 4.9 Predictions for future numbers Details about the size of the police workforce are collated by the Home Office on an annual basis and therefore trends on police numbers are readily available. The Valuing the Police inspection by HMIC collected data on predictions for the workforce during the Comprehensive Spending Review period from 2010 to April 2015 (these are set out in the Chapter 3 on the economic context) Forces were also asked to provide the latest information about numbers of police officers, police staff and PCSOs for 2014 (actual), 2015 (planned), 2016 (estimate) and 2017 (estimate). The later years are likely to be subject to change given the uncertainty about police funding and the likelihood that savings plans for later years are still being developed. The responses from 26 forces provide a reasonable assessment of the changes to the size of the police workforce. The workforce will continue to reduce The following charts show that (using estimates for data missing from some force returns and for only those forces that provided information): Police officer numbers are estimated to reduce by up to 3000 from 2014 to 2017 (this equates to 3% of the total 96,000 for the 26 forces). However, the MPS are showing a predicted increase of 1,200 officers and this masks the reduction in the other 25 forces. Police staff numbers are predicted to reduce by over 4400 from 2014 to 2017 (this equates to over 8.5% of the 51,000 for the 26 forces). Given that some forces were not able to provide estimates for future years given that they were currently developing plans, this figure is likely to be higher. PCSO numbers are predicted to reduce by almost 1250 from 2014 to 2017 (this equates to almost 13% of the 9750 for the 26 forces). This figure could be higher than other categories as some PCSOs have been supported by partnership funding. 34

35 Number of Police Officers FORCE April 2014 (Actual) (pre- December 2014 grant announcement) April 2015 (Planned) April 2016 (Estimate) April 2017 (Estimate) Avon & Somerset Cheshire 1956 NK NK NK City of London Cleveland Cumbria Dorset 1,218 1,263 1,221 1,177 Durham 1,200 1,200 1,130 Essex GMP Hertfordshire Humberside Kent Lancashire 3,022 2,939 2,938 2,938 Leicestershire Merseyside Met 30,712 31,957 31,957 31,957 Norfolk TBC Northants North Wales 1,435 1,395 1,385 1,383 South Wales South Yorks Suffolk Surrey TVP West Mids West Yorks TBC 1,914 1,913 1,913 1,913 4,177 3,991 3,955 3,

36 Number of Police Staff (excl PCSO) FORCE April 2014 (Actual) April 2015 (Planned) April 2016 (Estimate) April 2017 (Estimate) Avon & Somerset Cheshire 1265 Info not provided as Force is undergoing a PBB exercise City of London Cleveland Cumbria Dorset Durham 795 Essex GMP Hertfordshire Humberside Kent Lancashire 1,699 1,624 1,603 1,603 Leicestershire Merseyside Met 12,306 12,406 11,713 11,633 Norfolk Northants NK NK NK North Wales South Wales South Yorks Suffolk Surrey 1,910 1,905 1,905 1,905 TVP 2,682 2,665 2,646 2,606 West Mids West Yorks

37 Number of PCSOs FORCE April 2014 (Actual) April 2015 (Planned) April 2016 (Estimate) April 2017 (Estimate) Avon & Somerset Cheshire 222 Info not provided as Force is undergoing a PBB exercise City of London Cleveland Cumbria Dorset Durham Essex GMP Hertfordshire Humberside Kent Lancashire Leicestershire Merseyside Met 2,048 2,137 1,800 1,800 Norfolk Northants North Wales South Wales South Yorks Suffolk Surrey TVP West Mids West Yorks

38 4.10 Promotion Opportunities One of the potential consequences of austerity and the need to reduce the size of the workforce, particularly in supervisory ranks, is the lack of opportunities for progression through promotion. In a rank based, hierarchical organisation, such as the police, individuals have traditionally sought promotion as a means of professional and personal development and pay progression. There have been reports of increasing numbers of officers qualified to the next rank with limited prospects for promotion (constables and sergeants have to pass a national OSPRE 38 exam to proceed to the next rank) Forces were asked to identify the numbers of officers qualified to the next rank (where applicable, the number of applicants to any process run in 2014, the actual number of promotions in 2014, whether applications were sought from other forces and the prospects for promotion in The responses from 26 forces are shown in the following tables. 38 OSPRE - Objective Structured Performance Related Examination. Officers from England and Wales forces and PSNI can be assessed for suitability for promotion through the OSPRE process or the National Police Promotion Framework. All officers must pass OSPRE Part 1. 38

39 PROMOTION TO SERGEANT No. of FORCE OSPRE No. of External Prospect of promotions Qualified at applications in candidates promotions in to rank in included? 2015? 2014 Avon & Somerset N Y Cheshire 218 NK 16 NK Possible City of London NA Y Cleveland N Y Cumbria N Y Dorset N Y Durham N Y Essex N Y GMP 1683 NK 43 N Y Hertfordshire N Y Humberside N Y Kent N Y Lancashire N NK Leicestershire N Y Merseyside N Y Met N N Norfolk N Y Northants N Y North Wales N Y South Wales N NK South Yorks N Y Suffolk N NK Surrey N Y TVP N Y West Mids N Y West Yorks 602 NA 0 N N 39

40 INSPECTOR No. of FORCE No. of External Prospect of OSPRE promotions applications candidates promotions in Qualified to rank in in 2014 included? 2015? 2014 Avon & Somerset N Y Cheshire 98 Info not provided 1 Info not provided Possible City of London N N Cleveland N Y Cumbria N Y Dorset N Y Durham N Y Essex N Y GMP N Y Hertfordshire 68 NK 7 N Y Humberside N Y Kent N Y Lancashire N NK Leicestershire N Y Merseyside N Y Met N Y Norfolk 117 NA NA N N Northants N Y North Wales N Y South Wales N NK South Yorks N Y Suffolk 118 NA NA N NK Surrey N Y TVP N Y West Mids N Y West Yorks 157 NA 0 N Y 40

41 FORCE Avon & Somerset OSPRE Qualified No. of applications in 2014 CHIEF INSPECTOR No. of External promotions candidates to rank in included? N Y Prospect of promotions in 2015? Cheshire 0 0 NA Y City of London 15 6 N N Cleveland 0 1 (HPDS) N Y Cumbria 0 NA NA Y Dorset 9 5 N Y Durham 0 0 N N Essex 0 0 N Y GMP 0 0 N NK Hertfordshire 11 4 N Y Humberside 31 6 N N Kent 0 0 N Y Lancashire 21 1 N NK Leicestershire NA Info not provided 41 Info not provided Info not provided Info not provided Merseyside N Y Met 0 0 NA Y Norfolk 22 3 N Y Northants 0 0 N Y North Wales 19 3 N Y South Wales N NK South Yorks 26 6 N Y Suffolk 22 4 N NA Surrey 24 1 N N TVP Y Y West Mids N N West Yorks 0 0 N N

42 FORCE Avon & Somerset OSPRE Qualified No. of applications in 2014 SUPERINTENDENT No. of External promotions candidates to rank in included? N Y Prospect of promotions in 2015? Cheshire 0 0 NA Y City of London 7 2 N Y Cleveland 0 0 N N Cumbria 0 NA NA Y Dorset 6 3 N Y Durham 0 0 N N Essex 19 4 N Y GMP N NK Hertfordshire 9 2 N Y Humberside 13 4 N N Kent 15 3 N Y Lancashire 19 0 N NK Leicestershire NA Info not provided 42 Info not provided Info not provided Info not provided Merseyside 16 4 N Y Met Y Y Norfolk 2 1 N Y Northants 0 0 N Y North Wales 9 2 N Y South Wales 17 7 N NK South Yorks 18 5 N N Suffolk 2 1 N NK Surrey 0 0 N N TVP 44 9 Y Y West Mids 0 0 N Y West Yorks 9 2 N N

43 FORCE Avon & Somerset OSPRE Qualified No. of applications in 2014 CHIEF SUPERINTENDENT No. of External promotions candidates to rank in included? N Y Prospect of promotions in 2015? Cheshire 4 1 Y N City of London 4 2 N N Cleveland 0 0 N N Cumbria 6 1 N N Dorset 0 0 N Y Durham 0 0 N N Essex 9 0 Y Y GMP 0 0 N NK Hertfordshire 6 1 N Y Humberside 11 3 N N Kent 3 1 Y Y Lancashire 6 0 N NK Leicestershire NA Info not provided 43 Info not provided Info not provided Info not provided Merseyside 6 3 N Y Met NK 25 Y Y Norfolk NA NA N N Northants 0 0 N Y North Wales 0 0 N Y South Wales 7 1 N NK South Yorks 4 1 N N Suffolk Na NA N NK Surrey TVP 6 3 N Y West Mids 22 7 Y N West Yorks NA 0 N N

44 At those ranks where the OSPRE qualification applies, the data does tend to support the perception that there are significant numbers of officers who are qualified to the next rank but who are unlikely to get promoted in the near future. Given that an OSPRE pass is valid for only 5 years before a re-examination is required, officers are obviously keen to be able to gain promotion within a reasonable period The data suggests that for some forces the lack of opportunities is more acute (Greater Manchester Police promoted only 43 sergeants from a pool of 1683 and only 6 inspectors from a pool of 591). In 2014 there were no opportunities 39 to apply for promotion in another force at either sergeant or inspector level, with only one force seeking external applicants at chief inspector (Thames Valley Police) and two at superintendent (TVP and the Metropolitan Police Service). Most forces indicated that they would be promoting officers at each of the ranks (although the percentage of forces reduces for higher ranks) predictions for numbers of promotions were not requested and might have been unreliable before the budget setting process for 2015/16 has been concluded in February Career Pathways and post specific recruitment The history of policing has seen periods where officers are encouraged to be Omni competent with the ability to move between core and specialist posts, allowing opportunities for others to compete for specialisms and to ensure that there was knowledge and skills transfer to core functions. The use of tenure of post supported that principle in the 1990s As many parts of policing become highly specialist and posts require the completion of accredited training, the demonstration of competence in role and evidence of continuous professional development, forces and the College of Policing are developing career pathways so that officers are able to chart a path that develops their career whilst maximising the use of specialist skills and knowledge. The opportunity to recognise and reward lateral development and the attainment and maintenance of specialist skills is not yet reflected in the current pay system The impact of market pay differences related to specialist skills is probably more evident in police staff rather than police officer posts (retention as a police officer has traditionally been much higher). However, as officers become highly skilled in sought after specialisms (such as cyber related crime) and changes to police pensions take effect, then retention might be more difficult for police officer roles as well More pressing are the difficulties that some forces are experiencing in filling certain posts. Forces were asked to identify any hard to fill posts and possible reasons for these difficulties. The most common themes were: Small pools for recruiting from, in the case of smaller forces, resulting in a lack of the right set of skills for specialist Police roles. 39 This is based on the 26 responses received from forces 44

45 The high risk, high demand, low staffing levels, nature of work and on-call requirements for Protecting Vulnerable People based roles, firearms, public order and Control Room caused recruitment and retention issues. Perceptions of lack of career progression opportunities in certain departments like Custody. Remuneration (in the form of pay and allowances) featured for police officers in limited numbers (constables in 3 southern forces and 1 northern force and detectives in 2 forces). Certain posts face an associated risk as forces are constantly reviewing their resourcing demands and needs. For forces surrounding London there is additional competition with the Metropolitan Police Service, sometimes for specialist posts. Remuneration especially in terms of specialist police staff roles in IT, HR etc. The local market tends to offer more remuneration than the Police As can be seen from the above there is limited evidence to suggest that remuneration plays a part in filling those posts that are currently considered hard to fill. The reasons for these difficulties are more likely to be linked to additional accountability, workload and the level of risk associated with the role. General recruitment trends linked to affordability will be monitored and this might support the need to review pay levels, either nationally or locally Police Officer retention Voluntary resignations in the police have been increasing as a proportion of the workforce, but remain far lower than other parts of the public and private sector. The police Annual Data Return shows an historical rate of police officer voluntary resignations of around 2% in recent years, although the latest data suggests a rise to around 3%. The following chart shows police leavers as a proportion of the workforce: 2008/ / / / / /14 Voluntary Resignations % 1.93% 1.90% 2.70% 2.30% 3.06% Other Leavers % 1.42% 1.83% 1.82% 1.66% 1.63% Total (wastage) 1.94% 3.35% 3.73% 4.55% 3.97% 4.70% 40 voluntary resignations do not include retirements or transfers but would include any voluntary exit schemes. At this stage only Staffordshire Police has used voluntary exit arrangements so far with around 20 officers exiting the scheme in Durham Constabulary is the only other force known to be considering use of voluntary exit at this time. 41 Other leavers include dismissals, medical retirements, transfers and deaths. 45

46 The overall average wastage rate (including internal transferees, retirements etc) for police forces in England and Wales in 2009/10 was 4.7% of the forces strength in 2013/14. In 2012/13, it had fallen to 4%. This is the rate that is most comparable to turnover rates for other sectors - it will never be a wholly reliable comparison because different organisations include different types of leaver and timeframes vary. However, as a very broad indicator, we can say that other sectors demonstrate higher headline wastage rates over the last year: NHS - 8.5% Civil Service - 7% NOMS - 7.5% For teachers the rate remained roughly stable at 8-10% between 2004/05 and 2010/11 (the last year there was a national rate published). CIPD gives a median turnover figure of 11% for the labour market as a whole and Xpert HR puts it at nearer 20% Recent increases in public sector turnover may be a reflection of increased confidence in the labour market. Turnover can become an issue where organisations lose experience and knowledge. However, HMIC has found that forces are planning to protect the frontline, with an anticipated six percentage point increase in the proportion of police officers carrying out frontline activity by There is no optimum wastage rate, but a degree of turnover is essential to avoid stagnation Attendance data Forces provide data regarding sickness as part of the Annual Data Return (ADR) to the Home Office. Police sickness data from the ADR has been considered unpublishable for some years since the quality of the data supplied is patchy, inconsistent in places and has not been verified with forces. The 2012/13 and 2013/14 data has recently been validated with each force by the Home Office Stats team. It shows that for police officers: Sickness as a proportion of available hours has remained stable between 2012/13 and 2013/14; and There have been decreases in the number of hours lost in all three sickness categories (short, medium and long) between 2012/13 and 2013/ The full data table for 12/13 and 13/14 is attached at Appendix 3. Charts that indicate trends are shown below: 46

47 2009/ / / / /14 Police Officer hours lost to sickness 4,645,580 4,371,189 4,644,529 5,125,159 4,535,927 Source: iquanta 5,200,000 5,000,000 4,800,000 Police Officer hours lost to sickness 4,600,000 4,400,000 4,200,000 4,000,000 R² = Police Officer hours lost to sickness 3,800, / / / / / / / / / /14 Hours lost to Police Officer sickness as % of available hours 4.3% 4.3% 4.1% 4.3% 4.0% Source: iquanta Police Officer hours lost to sickness as % of available hours 4.6% 4.4% 4.2% 4.0% 3.8% 3.6% R² = % 3.2% 3.0% 2009/ / / / /14 Hours lost to Police Officer sickness as % of available hours Data on sickness is also presented within the HMIC Value for Money (VfM) 42 profiles. These suggest that there may have been a big drop in the HMIC snapshot figures for long term absence between 2010 and Further analysis found that 2010 figures may not be comparable since they seem to include other types of long term absence like maternity leave. In addition, 2011 data is missing. However, the numbers continue to show a small drop in the percentage of officers absent due to long term sickness between 2012 and (Short/medium measures are less reliable as they can be affected by a variety of factors for example when Easter is, a flu outbreak etc.)

48 In summary, across both sets of figures, (HMIC snapshot % of officers absent & ADR hours lost) there appears to be a degree of variation across forces a small number of forces appear to have seen a significant rise in hours lost to sickness since 2010 and some have seen a significant fall. The reasons for sickness are not collected, only whether it is short or long term. Therefore, it is not possible to say with any confidence whether or not claims about stress related illness increasing at a national level are valid Morale and Motivation National headlines about police morale have, through history, never been particularly optimistic: Police morale 'worst yet' BBC News 17 December Police morale is plummeting, says Lord Stevens The Telegraph 3 November Police officer numbers: Thousands 'plan to leave service', BBC News 29 October These headlines tend to emerge as a result of surveys commissioned by the staff associations or as part of independent reviews into policing. There is no national staff survey organised by forces, however each force tends to conduct either annual, or less frequent, surveys that attempt to track changes over time. Attempting to consolidate these surveys into a single picture is impossible It is possible to use proxy indicators of morale such as sickness, recruitment and retention rates and these have considered in previous sections of this submission. They suggest that there has been limited change to the sickness or turnover rates and that policing is still an attractive occupation. However, the most recent Police Federation of England and Wales (PFEW) survey and the Police Superintendents Association of England and Wales survey, both conducted in the of Spring 2014, do raise issues that must be considered. The findings of these surveys are presented in their submission and are not reproduced here A review of a selection of the force surveys tends to support the PFEW findings that staff take pride in delivering a quality service and in applying the values of the organisation. It is very difficult to try and draw together all of the findings from the surveys as they use different methodologies. Some do ask specific questions about reward and the level of pay and responses from two forces suggest the following (this is for all staff and not just police officers): Compared with other people in the force, I am satisfied with how well I am paid (Very satisfied or satisfied) Pay and reward structures in the force are fair (Very satisfied or satisfied) Force A 56% 40% Force B 48% 38% Lord-Stevens.html

49 A few forces have recently worked with Durham University Business School to undertake their staff surveys, led by Professor Tom Redman and Dr Les Graham. The survey is based on academic research and will, over time, allow a better understanding of the differences between forces and longitudinal studies to be done. At this stage only a few forces have completed the survey but it is probable that, by the time of the oral sessions with PRRB, more evidence will be available The aims of these staff surveys are typically: To establish key measures for work-place factors, staff attitudes, motivation and well-being which can be tracked over time. To investigate factors having the largest impact on focal measures to assist in the identification of priorities for action. To establish a selection of measures that allow a force to compare themselves with other forces The survey was designed using established academic scales which use a number of questions to assess each measure. For example, empowerment leadership is formed by averaging responses to 12 separate questions, while work-family conflict was measured using 5 questions. This has advantages in terms of achieving accuracy in the measurement of complex abstract variables, reducing measurement error and in allowing statistical tests to be conducted on whether measures are reliable in the sample achieved. It also assists in the analysis of relationships and relative importance for key measures for the setting of priorities for action The measures that will be of particular interest to PRRB are: Perceived Organisational Support - Employment relationships have commonly been viewed as having the characteristics of involving exchange. The employer provides a range of contractual and non-contractual benefits, including extrinsic and intrinsic rewards, opportunities for growth and development, respect, consideration and concern, which may be seen by the employee as going beyond contractual requirements. Where this is the case, the employee may perceive the organization as being supportive and so is likely to reciprocate by also going beyond contract in their behaviours. Perceptions of positive support from the organization have been found to be very important for well-being. Public Service Motivation (PSM) - Interest in public service motivation (PSM) has arisen from the observation that employees in the public sector behave differently from their private sector counterparts. PSM is seen as a unique attribute of public-sector employees that provides them with a desire to serve the wider community. PSM has been defined as the motivational force that induces individuals to perform meaningful... public, community and social service. 46 PSM comprises four key dimensions: self-sacrifice, attraction to public 46 Whistle Blowers in the Federal Civil Service: New Evidence of the Public Service Ethic. Gene A. Brewer and Sally Coleman Selden,

50 policy-making, commitment to the public interest or civic duty and compassion. PSM is considered as a useful basis for understanding public-sector employee motivation and can be considered as an attitude that motivates public-sector workers to display altruistic or prosocial behaviours. Emotional Energy - is central to individuals well-being and can be considered as the amount of emotional and mental energy individuals have available to them to meet the daily demands and challenges they face in their jobs. Low levels of emotional energy are manifested by both physical fatigue and a sense of feeling psychologically and emotionally drained at work. Prior research has found that low emotional energy levels are related to reduced organizational commitment, lower productivity and performance, reduced engagement, ill-health, decreased physical and mental well-being, increased absenteeism and turnover intentions and lower levels of persistence in the face of difficulties. Commitment - refers to the volitional psychological bond of dedication to, and responsibility for, that an individual feels towards a particular target. In the study we measure individuals commitment to different targets such as the public, the police service, the organisation and co-workers. Extra-Mile Behaviours - Well-functioning organisations not only need people who are reliable in the way they carry out their specific roles and job requirements, but who also engage in innovative and spontaneous activity that goes beyond their role requirements; going the extra-mile. The research examined extra-mile behaviours (EMBs) for police officers and police staff that measure behaviours useful for the organisation that relate to different foci and the nature of their jobs (e.g. for the public, the organization and for colleagues) The first survey in England and Wales forces was conducted with Durham Constabulary. The research is now at a stage where the relationship between measures can be tracked with sufficient reliability and conclusions can be made as to whether there is a relationship and, if so, how strong that relationship is. For example whether there is a relationship between pay satisfaction and organisational citizenship behaviours (going the extra mile). The findings were summarised in a presentation to the Excellence in Policing Conference in September It is hoped that the survey, also supported by the College of Policing, will be used in an increasing number of forces. This will strengthen the research base behind the questions and enable more accurate analysis to take place and allow a better understanding of the differences between forces. It will also provide a more academic rigour to force surveys and the question of morale in the police service and link to the discussion about the psychological contract that officers have with policing, as raised in the submission by PFEW and PSAEW AttitudesBehaviours.pdf 50

51 4.15 Wellbeing The issue of wellbeing is becoming much more topical in the police service as forces consider the broader factors around employees psychological and physical health. The service is working with Dame Carol Black, the Department of Health s expert advisor on work and health, who leads the government s Public Health Responsibility Deal 48 to develop a sector specific pledge for the police as employers Of interest is the Chartered Management Institute and Simplyhealth quality of working life report from July 2012 (Professors Les Worrall and Cary Cooper) which considered Managers Wellbeing, Motivation and Productivity 49. Key findings from this report include: Job satisfaction has reduced. Managers are losing faith in senior managers. Junior managers are the least committed to their organisations. In spite of economic conditions, managers remain motivated. Managers are working longer hours. Managers were concerned about adverse effects of long hours. Most managers have satisfactory/ good health. Sickness absence has risen slightly. Psychological wellbeing has declined. Highly motivated managers had higher levels of wellbeing. Organisations were less tolerant to those taking time off sick. A marked increase in presenteeism This was a self-reporting survey and is not police specific. However, many of the key findings do bear similarities to surveys run by police bodies Police Federation, Police Superintendents Association, and individual forces Forces are increasingly working with a number of academic institutions on a range of issues, including well being. Lancashire Constabulary have been leading much of the thinking on well being to date but it will be a core part of the national people strategy and has been the

52 subject of several discussions at national conferences. It is hoped that the national work should help to fill some of the gaps around softer people data The service is also working with the Police Mutual Assurance Foundation to develop a wellbeing toolkit which is now available online and has been well received so far 50. It is important that a menu of options for forces is developed to provide pathway support for line managers and occupational health professionals. In particular it is a priority to develop nonmental health interventions that help increase resilience. It will be vital that interventions are linked to the evidence base so that investment in wellbeing can deliver tangible results Police Staff context The PRRB only considers the pay and conditions of police officers. However, given that one of the principles established by ACPO in its submission to the Winsor review and referred to by the Home Secretary in her remit letter was to work towards interoperable terms and conditions with convergence of pay and conditions between officers and staff (unless there is a reason for difference), it is important that the review body is aware of reform in police staff pay and conditions The majority of forces in England and Wales are part of the Police Staff Council (PSC) and use the PSC Handbook which sets out the nationally agreed terms and conditions for all police staff 51. The Council is made up of representatives from Police and Crime Commissioners, the Home Office and ACPO (as the employers) and the employees of chief constables and PCCs (represented by the three recognised trade unions UNISON, GMB and TGWU 52 ) The Winsor report recommended several changes to police staff terms and conditions, however no progress has been made on these since publication and, unlike for police officers, there is no route to mandate change without agreement. Workforce reform in recent years has therefore mainly been focused on police officers rather than police staff at a national level. However, it would also be fair to say that the majority of job losses in that period have been felt in police staff numbers In recent months the employer and employee sides of PSC have agreed a new approach to consider reform which enables both sides to raise issues that they wish to progress. A number of principles have been put forward by the employers side which will be used to shape the discussions, and are consistent with the principle used in the Winsor review and the future workforce strategy (see Chapter 6). They are: The PSC handbook covers all police staff in England and Wales with the exception of the Metropolitan police, City of London police, Thames Valley Police, Kent police and Surrey police. These five forces are not part of the PSC due to previous arrangements. Kent and Surrey police were not part of the local government and therefore did not transfer their set of terms and conditions when the PSC was established. The Metropolitan police has maintained terms and conditions from the civil service. 52 National Union of General and Municipal Workers and Transport and General Workers' Union 52

53 a. Fairness. b. Affordability (although this principle is challenged by the employee side). c. National consistency and local flexibility. d. New arrangements should be simple to implement and administer. e. There should be a link between pay, competence and contribution. f. A single employment model where justified The review will involve looking at the whole of the PSC Handbook with the intention that proposals will be put forward by 31 December Although the PSC and the PRRB are separate entities, from the employers perspective it will be important that, where possible and appropriate, reform is progressed in tandem for both police officers and police staff The Impact on Diversity The latest Annual Data Returns enables some comparisons to be made around the protected characteristics. Any proposed changes will need to be equality impact assessed to consider whether they have a disproportionate impact on any particular groups Chapter 4 Findings a) When forces advertise for police recruits they receive high numbers of applicants. b) The academic qualifications of applicants is generally good (with almost 80% having a minimum qualification of an A-level and almost 40% having a degree or above). c) There is concern that policing is still not attracting the best candidates, but it is hoped that recent initiatives will address this. d) New recruits will increasingly be expected to have acquired certain training and qualifications prior to joining, this will reduce the training burden on forces but could affect the diversity of applicants. e) Most forces have opted to pay new recruits at the higher starting salary ( 22k), however a significant number pay recruits with no experience or limited qualifications the basic level ( 19k). There is no evidence that this affects application numbers. f) There is no evidence at this time of an increase in the numbers of officers leaving the service prior to pensionable service or age. g) The opportunities for promotion have reduced and some forces have considerable numbers of qualified (to the next rank) officers who are unlikely to be promoted. 53

54 h) Few forces advertise for promotion opportunities on transfer. i) Hard to fill posts are more closely linked to issues other than remuneration. j) The opportunity to recognise and reward lateral development and the attainment and maintenance of specialist skills is not yet reflected in the current pay system, this might become more important to retain specialist skills in policing. k) There is some limited evidence that forces are concerned with affordability for police officers, but it is too early to make any conclusions at this stage. l) It is important that the PRRB are aware of the reform proposals for police staff in future years to enable a single employment model to be implemented in policing, where appropriate. CHAPTER The College of Policing The College of Policing was established in December 2012 by the Home Secretary, with strong support from all key stakeholders. ACPO had supported the creation of an independent professional body, as exists within many other organisations The vision of the College of Policing is to be a world-class professional body, equipping its members with the skills and knowledge to prevent crime, protect the public and secure public trust. 53 The College will: Set standards of professional practice. Identify, develop and promote good practice based on evidence. Support the professional development of those working in policing. Help police forces and other organisations to work together to protect the public and prevent crime. Identify, develop and promote ethics, values and standards of integrity The College is quite clear that it does not make representations about pay or other similar conditions of service as it is not an employer or staff association. The College does have the

55 power to prepare Police Regulations, to issue Codes of Practice and to issue guidance relating to police staff and any contractors working for the police Although the College does not have a direct role in pay and conditions, it has been responsible for designing models to support pay structures that will incentivise professional development and reward skills (for example the link between appraisal and pay and the development of the foundation and advanced threshold see Chapter 6) The third objective of the College to support the professional development of those working in policing is intended to achieve the outcome of raising standards of professionalism in policing through the education, learning and professional development it provides, licenses or accredits. To achieve this the College will: Set a framework for professional development in policing. Lead a review of leadership at all levels of policing. Work to ensure that police leaders across ranks and roles are well supported to respond effectively to rapid change in the economy, society, technology, in the nature of crime and in the need to work effectively with other agencies. Work with world-class academic institutions and the best of leadership from other sectors to ensure the police are positioned at the forefront of modern thinking on leadership. Work with other training providers to accredit training and ensure those working in policing are equipped with the skills and knowledge needed to maintain high standards. Introduce continuous professional development (CPD) for everyone who works in policing, beginning with new recruits and chief officers The introduction of CPD will be linked to the development of the knowledge and skills needed to use, understand and build the policing research evidence base. There will also be requirements for core and specialist continuous professional development across policing roles, and a development and assessment process linked to annual appraisals to ensure that officers maintain their skills. By having accredited continuous professional development and associated qualifications, the College will help those working in policing to have their professional skills recognised and understood by those outside policing If the police workforce continues to reduce in size and the level of complexity increases, it will mean that the role of the College of Policing in professionalising the service will be vital. The reality is that the smaller number of staff will need to be more capable. 5.2 Chapter 5 Findings a) Although the College of Policing does not have a direct role in issues regarding the pay and conditions of police officers, its does lead work on the future development of policing and the police workforce and therefore considerations around pay are relevant and linked. 55

56 CHAPTER 6 Police Reform 6.1 The Winsor Report In October 2010 the Home Secretary commissioned Tom Winsor to review police pay and conditions. This was the most significant review of policing since the Committee of Inquiry on the police chaired by Lord Edmund Davies in In 1993 Sir Patrick Sheehy made recommendations 54 that included the abolishment of certain management ranks and the introduction of performance related pay. However, few of the recommendations were actually implemented The Winsor review was conducted over an 18 month period but published an interim report after 6 months that dealt with some short term issues intended to support the financial pressures facing policing. The final report contained 121 recommendations covering both officers and police staff pay and condition issues, structural reform and longer term development of policing. The review involved consultation with a large number of stakeholders who were all invited to submit their views At the conclusion of the review the recommendations were referred to the appropriate organisations or bodies to consider and over the last few years since publication in March 2012 there has been a phased implementation programme. Many of the recommendations have been implemented but the transition process on some will take several years to compete. 6.2 The ACPO Position for the Winsor Review ACPO made two submissions to the Winsor review. The first 55 set out some overriding comments and established ten principles which were retained for the second submission and also helped to inform the principles agreed by the official side of PNB In summary ACPO recognised that: The outdated regulations did not sit comfortably with a modern and professional public service. There was a need to be able to better manage local, national and international threats, inspiring confidence in communities and effectively operating within challenging financial times

57 The importance the office of constable and the need to protect frontline services through greater flexibility of workforce was recognised. There is a need to attract and retain people of the highest calibre The ten principles proposed by ACPO were: 1. Retain the office of constable. 2. Recognise the unique nature of policing in particular the operational independence and local accountability. 3. Enhance the professional status of policing with pre-entry certificate/accreditation, continuous professional development linked to reward and a certificate of practice (to recognise fitness to practice. 4. Reward not entitlement moving away from time served increments to a system based on skill, role and achievement. 5. Interoperable terms and conditions convergence of pay and conditions between officers and staff (unless there is a reason for difference). 6. Flexible and fairness ensuring consistency and justifying difference with more flexible exit and re-entry provisions. 7. Modern not minimal revamp the bonus schemes and more towards a system where reward is determined by continuous professional development. 8. A national framework with local discretion supportive of the need for a pay review body with the potential for regional/local flexibility. 9. Based on public interest not vested interest with options around flexible length contracts and flexible pensions. 10. A lean and agile system a simplified promotion arrangement and better use of the police professional framework The Winsor recommendations were always put forward as a package with implementation phased over a number of years. The report recommended that police officers and staff must be provided with the time to absorb change and allow for the principles of reform to bed in. These changes are too important to be rushed, yet too vital to delay 56. The reality is that the context in which policing operates has moved so quickly (as described in other chapters) that thinking has already turned to the next phase of reform that will build on the Winsor report. The Winsor recommendations have laid a foundation along the principles set out above report/report-vol-1?view=binary Page 25 57

58 6.3 Progress on Winsor Recommendations This submission does not contain a full update on all of the recommendations contained within the Winsor report, as many of these are not relevant to the PRRB. Although many were implemented unchanged some were either adapted or rejected whilst being considered by the consultative and negotiating machinery at the time. It is also important to recognise that, after the most wide reaching reform of the police service, there are some elements that will take time to embed. However, the service has also recognised that the pressures facing it now and in the future mean that it cannot afford to stand still The following section sets out those recommendations that are in a period of transition. 6.4 Pay scales Chapter 7 of the Winsor report made recommendations about the pay scales for all ranks. Although the details around the pay points altered from the original Winsor proposal, during negotiation within PNB, the principles of reducing the number of pay points at each rank, reducing the starting salary for constables and the top salary for ranks remained All new entrants at constable level and officers promoted after the implementation date will be on the new pay scales. Existing staff will transfer from their existing pay scale to the new pay scale at different times over a three year period as current pay points are gradually removed It was recognised that as a result of the two year increment freeze imposed on officers and the transition of officers on to the new pay scale, that officers who joined at a later date could leap frog those with more service. As a result, changes were made to the increment date for certain groups of officers to avoid or minimise the impact. As a consequence it is possible that officers will move between pay points either with less than or more than one year s reckonable service. It is also possible that for some officers, who are near the end of their service but not yet at the top rate of pay for that rank, the combination of the increment freeze and transition to the new pay scale could have had a significant impact on their final salary pension The fact that there are transitional arrangements in the police officer pay scales means that police pay is in a period of flux and will be until 1 st April 2017 when the final arrangements are in place. During the period 2011 to 2017 many officers progress up the relevant pay scale will have been slowed down (primarily caused by the increment freeze) however beyond that point an officer will reach the top rate of pay for each rank quicker (there being less pay points at each rank). All of the changes to pay scales were costed during their development and were broadly cost neutral the pace of movement up the scale was offset by the reduced 57 determinations_1_april_2014.pdf - Amendments to determinations April

59 starting salary, removal of rank related bonuses or smaller increment rises between the early points on the scale Information about the changes to pay scales can be found in determinations and guidance on the government website (see footnote 48). Guidance produced by Greater Manchester Police 58 highlights the complexity of the transitional arrangements. 6.5 A link between pay and skills The Winsor report recommended that there should be a greater link between contribution and pay (recommendation 84) and between skills/competence and pay (recommendations 94 to 100). The requirement for all officers to achieve a satisfactory grade in their annual appraisal is being implemented from 1 st April 2015 and forces will be required to have a Performance Development Review (PDR) with appropriate training for managers In terms of the link between skills and pay, the interim measure proposed by Winsor (the Expertise and Professional Accreditation Allowance, EPAA) was rejected by the Police Arbitration Tribunal. Work has therefore concentrated on the introduction of the Foundation and Specialist Skill Thresholds and these are considered later in this chapter It would be fair to say that forces are at different stages with the use of an appraisal system and any links to pay. Some forces have used an appraisal system linked to pay for police staff for many years and utilise a similar system for police officers, albeit without any link to pay. Other forces reduced their appraisal system as part of the drive to reduce bureaucracy. Recommendation 40 of the full report on bureaucracy, November 2009 by Jan Berry 59 suggested that a proportionate system that incorporated lean principles should be introduced. There has been, and is, a desire to introduce a greater link between contribution, competence and pay and the steps being implemented in this area will go some way towards that but this will involve significant cultural change in all forces and will be a long term, rather than short term opportunity. 6.6 Changes to bonus payment and allowances a) Bonus Payments - the principle of paying police officers an annual bonus based on their performance during the year was not supported by officers or the Winsor Review. As a consequence the bonus schemes for Superintendents and chief officer ranks were removed. b) Competency Related Threshold Payment this payment effectively introduced an additional point on all federated rank pay scales (value at 1,212). Of those officers who applied for CRTP about 99% received the payment. CRTP will be removed on a phased basis and the last payments will be made by 1 st April Given the limited increases to basic pay in recent Reducing Bureaucracy in Policing, Full Report by Jan Berry, November

60 years, the effect is that those officers at the top of the pay scale and in receipt of CRTP will see their salary reduced by 1,212 over the period 2013 to c) Double increments for superintending ranks and post related allowance the opportunity for those superintendents and chief superintendents who achieved an outstanding grade in their annual appraisal to move up two increment points on their pay scales was removed. The post related allowance for chief superintendents, which recognised those officers who occupied big jobs, was also removed. However, the savings from these two changes was reinvested back into the basic pay scales for both ranks. As a consequence the top rate for both ranks was increased. d) Unsocial hours payment Winsor recognised the nature of federated rank officers who work unsocial hours. He introduced a supplementary payment of 10% basic pay for each hour worked. Forces have generally found that this improves retention in those roles that have a 24/7 requirement, particularly the patrol function. e) On call and away from home allowance officers are paid an on-call allowance of 15 and are entitled to claim an allowance of 50 ( 80 when the accommodation is below a set standard) when they are held in reserve away from home. This latter allowance has been interpreted differently around the country and further clarification is being provided. f) Overtime as well as general reductions in overtime budgets (see chapter 3) changes were made to overtime payments (both unplanned and planned). The consequences are that the value of payment of overtime to officers has reduced since Restricted and Recuperative Duties The Winsor recommendations around the management of officers who are unable to perform the full range of duties of a constable on either a temporary basis (whilst recuperating) or on a long term basis (due to a restriction) are currently being finalised. The proposed regulation will provide a clear definition around different categories of restriction and when an officer should be placed on each category. The proposal to reduce an officer s pay if they have been on a limited duty for a period in excess of a year is likely to be included in Regulations. The reduction will be set at 8% of an officer s pay or 2,980 whichever is the lower amount (referred to as the X-factor). The decision to reduce pay will not be automatic and the chief constable will have the discretion to retain the officer on full pay. The officer will also have a right of appeal If an officer has been on a further period of 12 months of limited duty, having already been reduced in pay, then proposals are being considered around an exit route for officers on the grounds of capability where the force cannot accommodate the officer in a substantive post. Given the financial constraints it will be important for chief constables to have the ability to maintain the required number of police officers to provide a resilient and effective force. The implementation of the new proposals and the management by forces will require careful handling in terms of equality issues. Officers who might be eligible for consideration of an ill health retirement will also be able to pursue that route in preference to the proposed capability dismissal procedure. The likelihood is that forces are likely to see greater numbers of officers exiting the service through ill health retirements. Forces will also be encouraged to identify those police officer posts that need the status and experience of a police officer but 60

61 do not require the full capabilities of a fully fit officer. The focus should then be on the positive contribution that an officer on limited duties can make, rather than those functions that they cannot perform. 6.8 Other Winsor recommendations with less relevance to pay The following changes have also been implemented or are being implemented. They have less relevance to the remit of the PRRB but are included to demonstrate the scale of reform over that last 3 years (some are referred elsewhere in the submission). Changes to entry standards for police officers. Voluntary severance. Direct entry into senior ranks. Fast track entry to Inspector. Annual fitness tests for police officers. 6.9 Pension Reforms There are currently two pension schemes for police officers. The benefit and contribution rates for each of those schemes are slightly different but both are final salary schemes and the benefits can be summarised as: 1987 Scheme pension calculated as (1/60 th x number of years up to 20) and (2/60 th x number of years served between 20 and 30 years) x final pensionable pay Scheme pension calculated as 1/70 th x final pensionable pay x years (up to a maximum of 5 years) In March 2011 Lord Hutton published his final conclusions on public service pension s reform 60. The proposals were debated at the Police Negotiating Board which, on pension issues, was a consultative forum only. The Home Secretary published the Reform Design Framework 61 that set out the case and parameters for reforms to the police pension scheme. The new scheme will be implemented on 1 st April Those officers who are members of the 1987 and 2006 schemes will have protection for their accrued rights when they move to the reformed scheme. Officers who are within 10 years of

62 retirement (either on the basis of age or service) will also have protection and not move to the new scheme. A system of tapered protection will also be introduced for those who are on the edge of full protection so to avoid the creation of a cliff edge. The consequence is that there will be officers on 3 different schemes for the next 10 plus years as the transitional arrangements run their course The contribution rates for police officers in each of the schemes have increased in recent years. At the current time (from 1/4/14) the rates are: 1987 Scheme 2006 Scheme Tier 1 Salary under 27, % 11.00% Tier 2 Salary 27,000 to 60, % 12.05% Tier 3 Salary 60,000 and over 15.05% 12.75% The contribution rates for the 2015 scheme have not yet been set but it has been announced that the average member contribution will be 13.7%. All officers have seen their pension contributions increase since 2011 when all members in the 1987 scheme paid 11% and those in the 2006 scheme paid 9.5% The impact of pension reforms is that officers are now paying more contributions for their pension. The level of benefit they will receive from their pension will vary depending on individual circumstance. They will need to work longer before retirement (and for some officers the change has had a dramatic effect on their expected retirement date). However, these changes are no different to other public sector pension schemes and are generally still an incentive to retaining police officers. The career average nature of the 2015 pension scheme is likely to see greater portability of pensions across sectors, however it is too early to test that assumption There is limited data on the numbers of police officers who are opting out of the police pension schemes (1987 and 2006) but the Home Office have indicated that, from a small number of force returns received, numbers are low and make up under 4% of scheme members. Linking contribution and competence to pay 6.10 Key changes to the PDR The most significant change to the PDR is the linkage of a police officer s progression through the relevant pay scale to a grading of satisfactory in the annual Performance Development Review (PDR). The new process of linking pay to appraisal will be introduced for the rank of Sergeant to Chief Inspector in It will be introduced for Constables in The role of line managers will be particularly important where the assessment is linked to progression through the pay scale In July 2014, Chief Constables Council agreed that each force would ensure that an appraisal system is in place that has the following key elements: 62

63 A behavioural Competency Framework strongly recommended that all forces use the Policing Professional Framework (PPF). An element of Continuing Professional Development. A method for confirming satisfactory performance on an annual basis In the absence of a PDR or other suitable assessment process in a force area which meets national performance standards and national standards of assessment set by the College of Policing, an officer s performance will be assumed to be satisfactory. Forces will also need to satisfy themselves that line managers are able to assess their staff. In the absence of trained line managers, officers will be assumed to be competent and automatically progress to the next pay point Where a force decides to adopt an assessment process not based on the PPF, then to ensure fairness, forces will be expected to map across to their own assessment process, the generic role profile, personal qualities of the PPF and the national assessment standards The College of Policing has produced guidance on the implementation of an effective PDR and this is available for the PRRB if required Defining and Assessing Competence The Winsor report proposed the introduction of two threshold assessments in the police pay structure to ensure that officers were reaching and maintaining specific levels of competence. The foundation assessment for constables is first taken when an officer moves from pay point 3 to pay point 4 (generally at the end of their third year in service). Officers will then be subject to reassessment throughout their service to ensure that they maintain the basic requirements of being a police officer Winsor s proposal for a specialist threshold (open only to officers in certain posts) has been amended by the project board and will now be called the advanced threshold. This assessment is taken when an officer reaches the top rate of pay for their rank and must be passed to access that higher rate. Although every officer will be able to take the assessment, it is unlikely that every officer will be achieve the advanced standard The overall aim of the threshold assessments is to support the professionalisation of policing. The assessments are designed to ensure that officers, irrespective of any specialist role they perform, are able to undertake the core role of police constable and through continuous professional development deliver a consistently high level of service to the public. This will mean that nationally officers are working to the same standard of service, know what is expected, and will reassure the public that officers remain competent, continue to develop policing skills, and demonstrate the expected behaviour for their rank The College of Policing is leading on this project and pilots are about to start in a number of forces across the country, initially focused on the foundation threshold (and reassessment) 63

64 and then, when the research is complete, the advanced threshold will be piloted. Guidance documents have been produced to support the pilots Subject to a successful pilot, the introduction of a link between competence, contribution and pay will be an important step forward for the service. It is recognised that such a step will take time to implement in all forces and require considerable cultural change. However, it will form the foundation for a new pay structure for policing as discussed in Chapter 9. Future Reform 6.12 Development of a People Strategy for Policing National issues affecting policing have been developed and managed within ACPO Business Areas. For people issues these have been co-ordinated by the Workforce Development Business Area (WDBA). Since the establishment of the College of Policing, the roles of the College, ACPO and other key stakeholders is being determined. In terms of people issues the College has a key responsibility for setting standards of professional practice and supporting the professional development of those working in policing (see chapter 5 for details about the College). ACPO, as the representative of Chief Constables, in their roles as employers, have a role in implementing these standards and leading specific work around pay and conditions The newly titled Workforce Futures Business Area and the College of Policing have commissioned the development of a national people strategy that will set out what work will be done at a national level. The strategy is not yet written but it is hoped that it will be available for submission to PRRB in due course. The strategy will be developed by those who have an interest in policing, including ACPO, APCC, College of Policing, Staff Associations and Unions. It is likely that the strategy will contain a number of key principles that will be agreed by all stakeholders and which will help to guide development of work strands, including around pay and conditions. The principles are likely to be based around the following: 1. Fairness. 2. Affordability. 3. National consistency and local flexibility. 4. New arrangements should be simple to implement and administer. 5. There should be a link between pay, competence and contribution. 6. A single employment model where justified. 7. The Office of Constable is a key foundation (for police officers)

65 6.13 The College of Policing Leadership Review On 22 July 2014 Home Secretary Theresa May asked the College to undertake an immediate and fundamental review of police leadership 63 looking at: How to go further and faster with direct entry. How to encourage officers to gain experience outside policing before returning later in life. How to open up the senior ranks to candidates from different backgrounds The review is currently in the process of gathering evidence and is due for publication in spring The leadership review aims to identify the challenges and opportunities likely to face policing in the coming decades and recommend changes required to enable everyone within policing to meet them. The review will: Consider leadership in the next 5-10 years but also consider the issues and challenges beyond Look at leadership operating at all levels (officers and staff) within policing and not just at the highest levels of the structure. Be evidence-based, drawing on data from a wide variety of sources, including making best use of the learning and practice in partner agencies, private and 'third' sectors. Be conducted in collaboration with a wide range of stakeholders who will also contribute to the recommendations within the review. Ensure that cultural issues - such as where culture helps or hinders leadership - are considered across all aspects of the review. Produce recommendations, some of which may result in detailed delivery plans or further research beyond the review's publication Pay and conditions are out of scope for the review, although it is recognised that some potential recommendations could impact on these areas

66 The work streams of the review are: Horizon scanning - describing the changes shaping the future environment in which policing will operate by taking a bold and brave look at global issues through high level horizon scanning which will allow interpretation and assessment of the demands which the future environment will place on leadership in policing. Interpretation - identifying the core themes from the horizon scanning work and assess their relevance and impact on leadership in policing which will set the direction and requirements for future leaders. Structure - identifying and recommending what structures are fit for purpose, and those which are required to meet future leadership challenges. Education, selection and development - identifying and recommending what structures are fit for purpose in education, selection and development, and those which are required to meet future leadership challenges Each of the work streams will explore matters arising around culture, such as where culture helps or hinders leadership, and the culture changes needed to effectively follow through the Review's recommendations It is hoped that the review might be in a position to share some of the emerging issues with PRRB in time for publication of the Body s report, however most of the issues will inform the debate on longer term changes to pay and conditions Chapter 6 Findings a) ACPO adopted ten principles for the Winsor review which were consistent with the principles adopted by the official side in the Police Negotiating Board. They are now likely to inform the principles in the National People Strategy. b) The payscales will be in a period of transition until April 2016 as the number of pay points is gradually reduced. To avoid leap-frogging the increment date for some officers was altered. These changes, plus the two year increment freeze, means that pay for police officers has been, and still is, in a period of flux. c) One consequence of less pay points is that officers will reach the top point faster than has previously been the case. d) There have been several changes to allowances some removing payments (e.g. CRTP), others amending (e.g. on call) and a final group of new allowances (e.g. unsocial hours payment). These will have impacted on individuals differently. e) Regulations will change in the near future for those officers who have limitations to the range of duties they are able to perform. Proposals include the loss of an X-factor payment and options for dismissal on capability grounds. 66

67 f) The 2015 pension will introduce changes that align the police scheme with other public sector pensions (e.g. career average). Transitional arrangements will protect accrued benefits and enable officers within 10 years of reckonable service (or age) to continue in their existing scheme. g) Officers will need to demonstrate satisfactory performance to access their annual pay increment. h) Pilots are due to commence that will test proposals to introduce a link between pay and competence. This will require all officers to demonstrate a foundation level to access pay point 4 (to be reviewed on a regular basis) and an advanced level to access the maximum pay point. This will create a link between pay and skills. i) A National People Strategy for policing will help to define the 5 year strategy for pay and conditions. j) The College of Policing review into leadership, although not specifically dealing with pay and conditions, is likely to make recommendations of relevance to the role of PRRB. CHAPTER The Total Reward Package Police officer pay, conditions, allowances and annual leave entitlement are all set out in legislation (Regulations). In the same way the expectations around duty and restrictions that are placed upon police officers are clearly laid out. The balance between reward and responsibility has to be struck at the correct level to retain the psychological contract between the individual and the office they hold and organisation they work for As well as pay, the benefits that police officers receive include: Access to a pension scheme (the new 2015 police pension scheme will change the contribution rates and benefits that individuals will receive). Ill-health retirement arrangements that can provide immediate access to pension benefits. A minimum entitlement of 22 annual leave days. Overtime payments at variable rates to reflect notice period and bank holidays. Sick leave on full pay for up to 6 months and half pay for 6 months. Payments for maternity and paternity leave. Allowances to compensate for disruption to family life or additional responsibilities. Structured promotion opportunities. 67

68 7.1.3 The changes from the Winsor review, pension reform (with increased contribution rates for officers) and the challenge of austerity have all impacted on individuals. Although some of these changes have impacted on all officers (for example pension changes) others will had a different impact on officers (for example unsocial hours payments have benefited those working shifts). It is important that the reward package for police officers is attractive enough to both recruit the best candidates and retain sufficient numbers to maintain resilience. However this must be done in the context of the budgetary pressures being placed on policing and the public sector finances. 7.2 The impact on the Individual Information about the individual impact of austerity is difficult to collate. Surveys that measure perceptions of fairness and affordability offer some insight when compared over time, but they can be influenced by many factors. Forces have arrangements to support staff who are experiencing financial difficulties. However the numbers of referrals regarding debt counselling are not routinely collated and the reasons for support would be confidential The PFEW and PSAEW submission provides an assessment of the changes to Retail Price Index and Consumer Price Index over the last 5 years compared to the pay awards for police officers. This comparison uses national data and is the same for the majority of workers in the public sector. The submission highlights that police officers have also been impacted by a number of changes to allowances (for example the removal of Special Priority Payments (SPP) and Competency Related Threshold Payments (CRTP)), the two year increment freeze (that delayed progression up the pay scale) and the reduction in overtime budgets. The cost assessment of the Winsor Part 2 recommendations was that, for the majority of forces, these would be cost neutral. Therefore many of the other changes have seen the budget redistributed to a different set of officers (for example unsocial hours payment). There is, however, no dispute that some officers will have seen their actual pay reduce (particularly those who were at the top of the payscale, in receipt of SPP and CRTP and regular workers of overtime). Others will have seen their pay reduce in real terms (as the pay awards fail to keep pace with inflation) and for the final group their expectations for pay would have been higher (those in receipt of annual increments would not have progressed to as high a pay point as anticipated by this time) It is hoped that information about financial security will be available to provide to the PRRB in due course from a financial institution that provides services to police officers and which has collected data about individual finances for several years. This longer term data collection should give a indication to changes to financial security over time and also variations across the country. However, it does also tend to be affected by individual choices around spending. The data was not available at the time of submission of this report. 68

69 7.3 Chapter 7 Findings a) The total reward package for officers includes pay, pension, leave and allowances. b) Over the last 4 years (and for the next few years) the reward package has and will change, however this will impact differently on officers depending on their age, length of service and role (linked to the availability of overtime and allowances). c) In general terms, those officers who are further away from pensionable service or age will have seen the biggest change in their expected benefits (primarily pension). d) Changes to individual income are affected by national changes to terms and conditions (and pensions) and local decisions caused by organisational or operational change (for example overtime). e) Pay awards in recent years within the public sector have seen pay, when compared to both RPI and CPI, fall in real terms. f) The real impact of austerity for individuals is difficult to quantify, self reporting in surveys suggests that satisfaction with pay is reducing. CHAPTER Regional Pay The Winsor report considered regional pay in chapter 7.6. The Winsor report made two recommendations relating to regional pay and two recommendations relating to compensation payments when officers transfer from one force to another (to reimburse training costs). The first two matters that are relevant to this submission. They state: Recommendation 73 the new police pay review body should review the level and scope of regional allowance for police officers. The national rate of basic pay should only be raised if justified by recruitment and retention problems in force areas with the least competitive labour markets. Local recruitment and retention problems should be solved through an enhanced system of regional allowances. The pay review body should begin this work in its first review. Recommendation 74 Chief Constables should be given discretion to pay regional allowances up to the current maximum level, as set out in Determination Annex U made under Regulation 34 of the Police Regulations 2003, and the discretion to apply eligibility criteria based on location and performance The history of the London Allowance and Regional Allowance is covered in Winsor s report. The current situation is set out in Appendix 4 and contained within Determinations 64. Although agreement had previously been reached in the PNB to allow Chief Constables in the

70 South East to increase the South East allowance by up to 1,000 above the current maximum 65 this was never signed off by the Home Secretary in When the issue of regional pay was considered by Winsor and then the Police Arbitration Tribunal, the option to vary the payment of a regional allowance across a force up to a higher maximum amount, was rejected. The staff side had sought reassurance that the budget for regional pay would not reduce and there was also concern about affecting the gap between those in receipt of the London allowance and other South Eastern forces. At the time of the PAT report the economic climate had changed forces were seeing fewer transfers between forces and the affordability of paying enhanced allowances was more challenging. Recommendation 74 therefore only allowed chief officers to vary the payment of regional allowances to officers across forces up to the current maximum ( 2,000 and 1,000) Professor Disney, on the Winsor report, outlined a number of options for regional pay and outlined how the country could be broken down to a series of zones. Clearly any increase in parts of the country would lead to increases in the total pay bill for police officers unless there was a reduction of the basic national rate of pay for officers. In 2011 Professor Disney indicated that the cost of enhanced regional allowances could be as much as 200 million. With the current funding arrangement for police forces this would create an additional burden on those forces that might attract the higher allowances which would either have to be offset through readjustment to the national funding formula or managed within local budgets (possibly by demonstrating that costs are saved elsewhere by, for example, improved retention rates) The most recent figures regarding unemployment rates across regions are included for information. As can be seen when comparing the June to September 2011 unemployment figures with the June to August 2011 figures produced in the Winsor report 67 all regions have seen a decrease in unemployment rates but London stands out as showing the largest reduction in rates (from 10% in 2011 to 6% in 2014, the reduction increased by 1% point in the most recent quarter) deed4838bc6e&groupid= report/part-2-volume-2?view=binary Page

71 Source: Labour Force Survey - Office for National Statistics In terms of earnings the Office for National Statistics analyses variations in pay across regions and over time 69. In April 2014, London topped the regional list for median earnings for fulltime employees, at 660 per week. Employees here earned 119 more per week than the next highest, the South East ( 541) and 143 more than the median for the whole of the UK ( 518). The high pay in London is largely due to a high proportion of its labour force being employed in high-paying industries and occupations, and also because many employees are entitled to allowances for working in the capital. The regional pattern has remained fairly consistent since the series began in 1997, with London and the South East consistently topping the list. At the local authority level, earnings vary significantly. In April 2014 full-time employees working in the City of London had the highest median gross weekly earnings ( 928) and those working in Rother had the lowest ( 379)

72 Figure: Map showing earnings by local authority 72

73 Figure: Median full-time gross weekly earnings by region, UK, April The ACPO position for the Winsor report was that it recognised that there are variations in the cost of living in England and Wales, but favoured the maintenance of the existing approach to regional pay on the police service, with allowances paid in London and the South East only. ACPO highlighted the potential to create a market between forces for the best officers and also the difficulties that this might cause for force collaboration. The MPS did support the need for regional pay and agreed for local flexibility to tackle retention problems and the improving employment situation highlighted above might support that proposal. However, the recruitment and retention data included in chapter 4 would not, at this time, highlight the need for significant changes to regional pay or allowances. The South East Chief Constables wrote separately to the Winsor review advocating the need to have sufficient flexibility to allow forces to deal with local variations in housing cost and localised retention issues. This has not changed since that time, however the impact of austerity has restricted the ability of forces to increase allowances without impacting on other budgets In November 2011 the Chancellor s Autumn Statement 70 announced that the Government was asking independent pay related bodies to consider how public sector pay can be made more responsive to local labour markets. However, by December 2012 the Chancellor announced that national pay arrangements would continue in the NHS and prison service and that there would be no changes to civil service arrangements. This decision was taken in response to the recommendations from pay review bodies not to press ahead with regional pay. The issue of regional pay also provoked considerable political debate with clear divisions along both party political lines and geography