Lewisham Council has formally approved its Annual Pay Policy Statement for the 2026/27 financial year, outlining its approach to employee remuneration. The statement was passed during a full council meeting held on Wednesday, May 20, 2026.

The approved statement details the council's policies on the pay of Chief Officers and the lowest-paid employees, as well as the relationship between their salaries. It confirms that Lewisham Council does not operate performance-related pay or bonuses for any of its staff. The document also covers the council's approach to pensions and termination payments.

Chief Officer Roles and Salaries

At Lewisham Council, 'Chief Officers' encompass a range of senior positions including the Chief Executive, Monitoring Officer, statutory chief officers, non-statutory chief officers (those directly reporting to the Chief Executive or accountable to the Council), and their deputies. For the 2026/27 financial year, the salary ranges for these roles are as follows:

  • Directors (JNC3 and JNC2): £113,334 - £132,441
  • Executive Directors (JNC1): £166,755 - £173,133
  • Director of Law and Corporate Governance: £169,698 (fixed point)
  • Chief Executive: £207,636 (fixed point)

These figures do not include the 2026/27 pay award, which was still under negotiation at the time of the meeting.

Pay Multiple and Gender Pay Gap

Key details within the statement include the council's commitment to the London Living Wage as a minimum for all employees. It also outlines the pay multiple, which is the ratio between the lowest paid employee and the Chief Executive's salary, with the council having agreed a maximum pay multiple of 13-1. The current pay multiple is reported as 7.69.

Furthermore, the statement notes a gender pay gap of 6.5% in favour of women, a slight reduction from the previous year's figure of 6.7%. This data is a requirement under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

Pensions and Termination Payments

Lewisham Council operates three pension schemes for its employees: the Local Government Pension Scheme (for most employees), the Teachers' Pension Scheme (for centrally employed teachers), and the NHS Pension Scheme (for Public Health employees who transferred from the NHS).

The Council does not enhance pensionable service for its employees either at the recruitment stage or on leaving the service, except in certain cases of retirement on grounds of permanent ill-health where the strict guidelines specified within the pension regulations are followed. The document does not specify typical employer contribution rates.

Regarding termination payments, the council's policy states that employees are generally not entitled to payments beyond those detailed in the policy, with legislation and guidance on pensions subject to change. Employees aged 55 or over can receive immediate pension benefits according to the Local Government Pension Scheme, potentially reduced for early payment. Early retirement on grounds of permanent ill-health is possible at any age, and flexible retirement applications for those aged 55+ are considered on their merits, conditional on a reduction in hours/pay of at least 40%.

Redundancy payments are calculated based on actual weekly earnings, length of service, and age, with the Council using actual weekly pay and not applying the statutory cap. An additional payment, equal to one times the redundancy payment, is made as compensation. Employees aged 55 and above who are members of the Local Government Pension Scheme will also receive immediate unreduced pension benefits, with the Council offsetting the cost against the additional compensation payment.

Voluntary severance payments may be made if deemed in the Council's best interests and compliant with legislation and the Council's Voluntary Severance scheme. The Council may also settle claims through a compromise agreement if it is in the Council's interests, with the amount of compensation being appropriate to the circumstances. For Executive Directors or the Chief Executive, such settlements require external legal advice. In exceptional circumstances, payment in lieu of notice may be made, subject to tax and National Insurance deductions. Exceptional payments may be made if they are in the Council's best interests and comply with statutory requirements and Council policy.

Review and Publication

The council's approach to pay is guided by principles of transparency, value for money, and fairness, aiming to ensure that pay levels are appropriate for motivating staff while remaining affordable for the council. The Annual Pay Policy Statement can be amended at any time by a further resolution of Full Council. Once approved, it comes into immediate effect, superseding the previous year's statement. Any amendments made in future years will also be published on the Council's website.

The full public reports pack for the meeting can be found here. The agenda frontsheet is available here, and the minutes of the last meeting can be accessed here.