Blunkett reaches deal with police over pay reforms

David Blunkett appeared to have headed off a police revolt over pay reform yesterday as he secured a compromise deal after months of negotiations with officers.

A dilution of controversial plans to slash overtime payments helped secure the agreement in principle between Home Office officials and leaders of the Police Federation during conciliation talks.

Mr Blunkett hailed the deal, insisting that all the objectives of the Government's package of reforms to secure greater flexibility in police working conditions had been secured.

The agreement, which will be put to formal consultation by the Police Federation in the next two weeks, looks likely to defuse the increasingly acrimonious row which has pitted ministers against rank-and-file officers for months.

Under the proposals, police forces will have to cut their overtime bills by 15 per cent, but plans to reduce overtime rates for individual officers have been dropped. Home Office officials said the change would secure improvements in management, but would not cut pay rates for officers working overtime.

Last month, more than 10,000 off-duty officers marched on Westminster to protest at the package, after it was rejected by a majority of 10 to one by federation members. Some leaders spoke openly about abandoning their 83-year-old no-strike rule at the Federation's annual conference next May.

The deal on overtime will secure the Government's shake-up of pay and conditions. Senior sources said increased savings on overtime payments could now be made, freeing £45m over three years to plough into front-line policing compared with savings of £39m expected under the original proposal.

But they insisted that the Home Office was not claiming victory. "We have found a way forward and it means we have got through a substantial part of our police reforms." The source said he was confident the final deal would secure support from the federation.

Under the package, officers will be awarded a £400 pay rise above their annual pay increase. Payments of £1,000 linked to the competence of officers at the top of their pay scales will also be introduced, along with "special priority payments" of up to £3,000 to reward officers with the most demanding jobs. A system of bonuses for officers carrying out unpleasant or stressful duties will also be introduced.

Central to the reform of overtime are new rosters for officers. The deal replaces rotas drawn up a year in advance with three-month rosters, designed to cut overtime payments by reducing last-minute changes in shift patterns.

Mr Blunkett said: "From getting rid of annual rostering, to tackling ill-health retirement, to introducing the principle of competency-related pay, to the overtime cuts and streamlining of allowances, we will have achieved all the aims we set ourselves in October. I am pleased we have reached a recommended settlement in a spirit of co-operation with the Police Federation."

The Federation confirmed a deal had been agreed, but declined to comment on the details until it is discussed by the Police National Board on Wednesday.

Simon Hughes, the Liberal Democrat home affairs spokesman, said: "This is an interesting initiative by the Home Office as it clearly has some merit. But it is also likely to make many officers unhappy at the prospect of losing some of their overtime hours."