Dear Mr Rathi,
Cost of Living Crisis
I am writing further to my letter of 28 July 2022, in which I raised the issue of measures to assist FCA staff with the Cost of Living Crisis.
I note that the FCA has recently taken steps to address this issue. As I understand it, these steps include payments of £1,000 for staff earning under £60,000, payments in respect of home office equipment of £300 each, and the possibility of advances on salary for staff in hardship.
These measures will give much-needed assistance to those staff who receive them, and we would broadly welcome them. Having said that, a one-off payment is no more or less than that: a payment at one point in time. Our members are currently looking at their personal finances, in the light of rising inflation and current market turmoil, and asking what the future will hold for them.
We appreciate that there is a balance between using public money wisely and paying salaries which are sufficient to attract, motivate and retain able people to do the vital job of regulating the British financial sector. Our members are concerned that this balance was knocked out of kilter by the pay cuts that were imposed this year, and they are understandably seeking clarity on the future direction of travel for remuneration at the FCA, as living standards continue to come under severe pressure.
To date, FCA staff have been told that there will be a headline pay rise of 4% next year (subject to variations depending on performance). That figure was set when inflation was considerably lower than it is today: the latest figure for CPI (August 2022) was 9.9%.
I would like to ask you two questions.
First, do you plan to reconsider the 4% figure, and if so when will the outcome of that reconsideration be announced to staff?
The coming winter will be difficult for many people, and action on this point will help staff to plan ahead.
Second, would you be prepared to give greater transparency on the general policies and principles that underlie the FCA’s pay decisions?
A situation where staff do not have visibility in this regard can lead to unnecessary misunderstanding and discontent. It would not in itself cost the FCA anything to publish a statement setting out the relevant principles, such as the factors weighing on different sides and broad explanations of how benchmarking is undertaken.
Doing this would significantly improve staff relations. People are more likely to accept a pay figure which is lower than they were hoping for if the factors that led to it are made transparent to them.
I would also like to raise two specific points regarding the Cost of Living payment.
Firstly, I understand that part-time staff will not receive the payment if their full-time equivalent (FTE) salary is over the cap, whereas any payments that they receive will be reduced pro rata due to their part-time status. This seems inconsistent. If people are being held to the FTE cap, should they not receive the FTE payment?
Secondly, I understand that the payment will not be made to people on long-term leave until they return to work. As these people will be experiencing the same financial pressures as others, should they not receive the payment at the same time?
In respect of these two issues, I would note that there is a DEI angle because part-time staff and staff on long-term leave (e.g. sick leave and maternity leave) are disproportionately likely to have particular protected characteristics.
These are the issues that we have been hearing about from members, and we look forward to clarifying them with you.
We also look forward to further constructive discussions about such matters in the event of Unite becoming a recognised union at the FCA.
Yours sincerely
Steve O’Donnell
Regional Officer
Unite the Union
cc. Siobhan Sheridan, FCA, Chief People Office
