Annex A: Pay and supply model assumptions, sensitivity testing

Annex A: Pay and supply model assumptions, sensitivity testing

and disaggregated cost benefit analysis

Table 5: Cost of pay modernisation

	2003/04	2004/05	2005/06	Year 5	Year 10	Year 20	Year 30
Con con	£125m	£175m	£275m	£404m	£568m	£1,057m	£1,964m

Table 22: Consultant contract

	2002/03	2003/04	2004/05	2005/06	Year 5	Year 10	Year 20
Base pay bill	£2,494m
Cost of pay mod		£125m	£175m	£275m	£404m	£568m	£1,057m
Savings from drift and awards		£48m	£89m	£119m	£167m	£253m	£758m
Total net costs		£77m	£86m	£156m	£237m	£315m	£299m
Productivity		£60m	£130m	£210m	£425m	£1,025m	£1,950m
Participation		£10m	£10m	£20m	£25m	£50m	£100m
Total net cost		£7m	£-54m	£-74m	£-213m	£-760m	£-1,751m
NPV		£6m	£-40m	£-98m	£-330m	£-1,846m	£-5,132m