Remuneration and staff report

This section of the annual report will cover:

• Board members and senior management remuneration (subject to audit)
• Salaries and allowances for the year ending 31 March 2021 (subject to audit)
• Salaries and allowances for the year ending 31 March 2020 (subject to audit)
• Pension benefits for the year ending 31 March 2021 (subject to audit)
• Pension benefits for the year ending 31 March 2020 (subject to audit) 
• NHS Pensions Data 
• Cash Equivalent Transfer Values 
• Real Increase in CETV 
• Relationship between the remuneration report and exit packages, severance payments and off-payroll engagements disclosures 
• Remuneration policy for directors and senior managers 
• Compensation on early retirement or for loss of office 
• Payments to past directors 
• Fair pay disclosure (subject to audit) 
• Sharing of senior members of staff 
• Exit Packages (subject to audit) 
• Off-payroll engagements (subject to audit)
• Staff Report
• Staff numbers and costs
• NHS Staff Survey results
• Health and safety at work
• Staff Sickness and Staff Turnover Data
• Expenditure on consultancy

Board members and senior management remuneration (subject to audit)

Salaries and allowances for the year ending 31 March 2021 (subject to audit)

1. Pensions related benefits are based on the NHS Manual of Accounts methodology and the pension data is provided by the Pensions Agency. The benefits calculated incorporate 20 times the annual real increase in pension and do not represent actual payments made. Non-Executive Board members do not receive pensions as part of their remuneration.
2. Pension Restructuring Payments column added as: Employers have the option of using any unused employer contributions to make an additional pay offer to individuals that opt out of the NHS Pension Scheme. The overall net cost to the organisation remains the same whether the employee remains in the NHS Pension Scheme or takes the employer contributions as additional salary.
3. Expense figure is arrears from 19/20
4. Since July 2019 Mr Morgan has been on secondment at United Lincolnshire Hospitals Trust (ULHT). Details on his remunerations can be found in their annual report.

Salaries and allowances for the year ending 31 March 2020 (subject to audit)

1. Pensions related benefits are based on the NHS Manual of Accounts methodology and the pension data is provided by the Pensions Agency. The benefits calculated incorporate 20 times the annual real increase in pension and do not represent actual payments made. Non-Executive Board members do not receive pensions as part of their remuneration.
2. Mr AJ Morgan joined United Lincolnshire Hospitals NHS Trust as Chief Executive on secondment from 01/07/2019. Salary shown in this report relates to April - June 2019.
3. Dr Y Owen also provided Out of Hours practitioner services to the Trust as an independent contractor to 31st May 2019, disclosure of the value of these payments can be found in the related parties disclosure of the Trust Annual Accounts 2019/20.

Penison benefits for the year ending 31 March 2021 (subject to audit)

1. Dr Owen is not a member of the NHS Pension Scheme in relation to employment with LCHS
2. Since July 2019 Mr Morgan has been on secondment at United Lincolnshire Hospitals Trust (ULHT). Details on his remunerations can be found in their annual report.

Pension benefits for the year ending 31 March 2020 (subject to audit)

1. Dr Owen is not a member of the NHS Pension Scheme in relation to employment with LCHS

NHS Pensions Data

NHS Pensions are using pension and lump sum data from their systems without any adjustment for a potential future legal remedy required as a result of the McCloud judgement. (This is a legal case concerning age discrimination over the manner in which UK public service pension schemes introduced a CARE benefit design in 2015 for all but the oldest members who retained a Final Salary design.). We believe this approach is appropriate given that there is still considerable uncertainty on how the affected benefits within the new NHS 2015 Scheme would be adjusted in future once legal proceedings are completed.

Cash Equivalent Transfer Values

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capital value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme.

A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme.

The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies.

The CETV figures and the other pension details include the value of any pension benefits in another scheme or arrangement which the individual has transferred to the NHS pension scheme.

They also include any additional pension benefit accrued to the member as a result of their purchasing additional years of pension service in the scheme at their own cost. CETVs are calculated within the guidelines and framework prescribed by the Institute and Faculty of Actuaries.

Real Increase in CETV

This reflects the increase in CETV effectively funded by the employer. It takes account of the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Relationships between the remuneration report and exit packages, severance payments and off-payroll engagements disclosures

In respect of the relationship between individuals in the remuneration report and links to exit packages, severance payments and off payroll engagement disclosures, the following information is applicable:

• Exit packages – no relationship
• Severance payments – no relationship
• Off Payroll Engagements – Dr Y. Owen has previously provided Out of Hours practitioner services to the Trust as an independent contractor until 31 May 2019. The value of this can found in the related parties’ disclosure of the Trust Annual Accounts 2019/20.

Remuneration policy for directors and senior managers

LCHS has a Remuneration Committee. The purpose of the committee is to agree appropriate remuneration and terms of service for the chief executive, executive directors and other directors including all aspects of salary, provisions for other benefits, arrangements for termination of employment and other contractual terms working to NHS Improvement.

Compensation on early retirement or for loss of office

The Trust has not made any compensatory payments on early retirement for loss of office in 2020-21.

Payments to past directors

The Trust has not made any payments to past directors in 2020-21 (2019/20: also nil).

Fair pay disclosure (subject to audit)

Reporting bodies are required to disclose the relationship between the remuneration of the highest-paid director in their organisation and the median remuneration of the organisation's workforce.

The banded remuneration of the highest paid director in Lincolnshire Community Health Services NHS Trust in the financial year 2020-21 was £155-160k (2019/20: £150-155k). This was 5.20 (2019/20: 5.01) times the median remuneration of the workforce, which was £30,681 (2019/20: £30,615).

In 2020-21 and 2019/20 no employees received remuneration in excess of the highest-paid director.

Remuneration ranged from £11,500 to £159,575 (2019/20: £16,366 to £153,440)

Total remuneration above includes salary, non-consolidated performance-related pay and benefits-in-kind. It does not include severance payments, employer pension contributions and the cash equivalent transfer value of pensions.

Sharing of senior members of staff

Since 1 July 2019, LCHS’s substantive chief executive, Andrew Morgan, has been on secondment to United Lincolnshire Hospitals NHS Trust (ULHT). This is not strictly a sharing arrangement as ULHT is remunerating his salary back to LCHS. Andrew Morgan’s substantive role is being performed by Maz Fosh. This arrangement is currently due to be in place until 31 March 2022.

Exit Packages (subject to audit)

Off-payroll engagements (subject to audit)

Off-payroll engagements as of 31 March 2020, for staff earnings more than £245 per day and that last longer than six months:
In respect of off-payroll engagements, the Trust utilises independent medical contractors, generally General Practitioners in the delivery of its Out of Hours and Urgent Care Services.

Staff report

The following table highlights the numbers of staff by banding (headcount). It should be noted that this equates to 1659 full time equivalent staff, as shown in the table on the next page.

 Staff numbers and costs

NHS Staff Survey results

The results from the national NHS Staff Survey are gauged against the other 15 community trusts and where applicable, results from previous years.

The survey response rate was 63%. Whilst this is a decrease of 8% from 2019, it is still the second highest response rate in LCHS history and is 5% higher than the average national response rate for Community Trusts.

The overall Staff Engagement Score was 7.5 (out of 10) which is an increase from 7.3 in 2019 and compares as ‘best in class’ against the national benchmarking group for Community Trusts.

Of the 10 themes, from 2019 we improved in seven, stayed the same in one and declined in two.

In comparison to our benchmarking group, we were above the average in seven themes, below the average in three themes and ‘best in class’ in three themes.

Health and safety at work

The accident figures for 2020-21 were lower than in a normal operating year. This reflects the increase in home working and the use of telephone and online video for consultations and meetings as part of the Trust’s response to the Covid-19 pandemic.

There were 91 staff accidents in the year as opposed to 117 last year. This downward trend is welcomed.

The types of injury are consistent with previous years and included:

• slips trips and falls
• needlestick (a needlestick injury is the penetration of the skin by a needle or sharp object) and musculoskeletal (mainly sprains and strains and soft tissue damage).

The majority resulted in no or low harm.

There were 99 patient injuries reported that were almost all no or low harm. This was down on the 116 of last year. The majority of incidents were slips, trips and falls and work continues to assess patients and implement control measures as they come into LCHS’s care. The statistics indicate that staff performed extremely well under very difficult circumstances

The health and safety input this year was focused on safeguarding staff and patients from Covid-19 whilst responding to, and providing services throughout, the pandemic.

Extensive risk assessments were conducted, regularly reviewed and control measures monitored.

These included:

• additional Covid-19 specific beds and associated equipment, medical devices and oxygen provision to them and fire risk assessment for changed use.  
• Personal Protective Equipment (PPE) related risks including its use, the logistics of cross County distribution and national levels of supply.
• staffing levels, to meet service demand and respond to possible effects of the disease on staff
• support capability in both engineering/facilities maintenance and site support services including portering and housekeeping
• medical devices, supply, maintenance, monitoring and use
• ventilation requirements and potential for heat stress on wards and patient areas considering the effects of wearing PPE.

A risk assessment for premises was devised by the Trust to ensure appropriate steps were taken to create Covid-19 secure premises wherever possible. Physical measures were introduced including reception screens, maximising ventilation, one-way systems and floor markings and signage and procedures to manage the infection risk. On wards and in hospitals the national infection prevention and control guidance was followed.

At the start of the year, when there was a national shortage in PPE, alternative supplies were sought, and quality standards developed. All PPE received was assessed against the standards before acceptance and distribution.

A stock control system and distribution network were established to ensure PPE was available to all staff.

An emergency protocol was devised using alternative reusable PPE in case national supplies ran out. This situation did not arise as the LCHS system proved to be effective and there were no incidents reported of staff not having the required PPE.

A system was implemented to assess the risks of Covid-19 to all staff. This included enhanced assessments for the vulnerable.

A range of online health and safety advice and resources for staff were developed online, including for support groups. Take up of the resources and events has been very positive, especially for those who have been vulnerable and shielding/isolating.

The Trust was extensively involved in setting up the two large Covid-19 vaccination centres at the Lincolnshire Showground and the Princess Royal Sports Arena. The Trust worked with Commissioners and other healthcare providers, assessing the risks and producing action plans and work to enable them.

Staff Sickness and Staff Turnover Data 

Sickness absence data and staff turnover data is published for Department of Health and Social Care bodies on their webiste here. 

Expenditure on consultancy

In 2020-21, the Trust spent £47k on consultancy expenditure. Key projects which engaged consultancy support included:

• supporting the Lincolnshire NHS system approach to Talent Management
• supporting a review around palliative care and end of life pathways.

Maz Fosh, Chief Executive

Lincolnshire Community Health Services NHS Trust

Signature: 

Date: 8^th June 2021