Council spending on agency staff up 19% on previous year

SPENDING on agency staff at Northern Ireland’s councils has increased by almost a fifth.

In 2016/17, temporary workers cost a total of £24.2m — up by 19.1% on the previous year.

The rise comes despite councils being urged to slash these costs.

Last year a report by the Local Government Auditor noted “significant expenditure” on agency staff. Councils were told to satisfy themselves that they were receiving value for money.

However, today’s report states that spending on agency staff increased by £3.9m in 2016-17.

Nine of the 11 councils increased their spending.

Over half of the increase (58%) was incurred by three councils — Causeway Coast and Glens, Belfast, and Mid and East Antrim.

Overall, agency staff expenditure equated to 7% of the total council expenditure on staffing, but there were significant differences between councils.

In Armagh City, Banbridge and Craigavon, agency staffing costs amounted to 0.6% of total staff costs, compared with Causeway Coast and Glens where agency staff costs amounted to 23.1%.

Local Government Auditor Pamela McCreedy states: “I recognise that the use of agency staff, particularly during a period of significant organisational change, may be required to meet business needs.

“However, councils must ensure that their employment continues to deliver value for money.”

Ms McCreedy adds that she intends to keep the cost of agency staffing under review. SOME £34m was paid out in exit packages to staff who quit Northern Ireland’s councils over a four year period.

A total of 521 severance deals were agreed between 2013 and 2017.

Many were linked to the reform of local government, which saw the creation of 11 super councils in 2015.

The average severance payment was £65,000. One in five were worth £100,000 or more.

Details of the costs are set out in today’s report by the Local Government Auditor.

The payments include compulsory and voluntary redundancy costs, pension contributions and other departure costs.

Over the four years from 2013/14 to 2016/17, councils paid a total of £34m in exit packages. The average cost was £65,000.

The number of severance deals increased after 2015, when the 26 councils were merged into 11 new bodies.

The report states: “Following the formation of the 11 new councils, there have been significant staff changes and restructuring throughout many of the councils.

“This led to a significant increase in exit packages in 2015/16, the first year of the new councils.

“However, in 2016/17 the numbers and cost of exit packages have decreased to less than half of the 2015/16 levels.”

Across the four years, the 521 severance packages included 115 which were worth £100,000 or more.

In the most recent year (2016/17), 92 exit packages worth a combined £5.9m were agreed.