Caerphilly councillors discuss redundancy pay as consultation opens into cuts

Council workers’ conditions could be changed to save the authority money on redundancy pay.

A report discussed by Caerphilly councillors on August 5 asked for members’ views on how to save cash from the workforce budget.

Proposals include voluntary and early retirement as well as voluntary and compulsory redundancies.

The report states: “Members may also wish to consider whether they would like officers to consult with the trade unions and draw up options for alternative levels of payment for redundancy to support the medium term financial plan. This would involve a change to employee’s terms and conditions.”

It also outlines a recommendation to cap voluntary severance pay at £53,533 to “avoid potential criticism where this could be viewed as a benefit to more senior officers”.

The discussions come as it was revealed the council underspent by £9.6m in 2013/14 and spent less than any other Welsh authority on redundancies in the last three years

Cllr Keith Reynolds, Leader of Caerphilly County Borough Council said: “We performed well against our budget targets last year and our prudent approach is clearly paying dividends. We will continue with this approach as we tackle the tough financial challenges that lie ahead.

“Since 2012, Caerphilly Council vacancies have been carefully managed and it has been a policy of this Labour administration that redundancies would be an absolute last resort. We have long held the view that retaining jobs is as important as creating them.”

The council’s financial plan calls for savings of over £13m between 2015 and 2017 in order to balance the budget as part of the UK Government’s austerity drive.

The Welsh Government has warned there could be more funding cuts, and the worst case scenario would mean the council must save £16.7m between 2015 and 2017. This would take the total cuts to almost £30m.

A major budget consultation is underway this year and during August and September local people will be asked their views about the future of discretionary services.

Local authorities are legally obliged to deliver key statutory services such as education, trading standards and child protection, but there are many other discretionary services which the council choose to deliver, but is not legally required to do so.

Statutory services will be subject to efficiency savings targets, but the focus of the consultation will be on discretionary services and residents will be asked to prioritise those they feel are most important to the community.

Cllr Keith Reynolds said: “We want to hear the views of local people about the way we prioritise our services and the impact any cuts may have on our communities going forward.

“We believe that public engagement plays a vital role in the way we decide how our budget is set and It is important that everyone gets the chance to have their say about this hugely important topic. Now is the time to ensure your voice is heard.”

A Labour group spokesperson said: “Recent indications from the Welsh Government on funding cuts to Welsh councils are likely to call into question the future of social services provision, bowling greens, sports centres and many other valued amenities.”

The consultation period will run until September 30 and it can be accessed on the council’s website.