STAFF at a Hampshire council are being rewarded with an average £1,500-a-year pay rise in an effort to attract skilled employees.

Fareham Borough Council leader Sean Woodward said giving a per cent rise to all employees other than the chief executive was “the right thing to do”.

Since the recession began in 2008 staff numbers have dropped by 14 per cent to about 380, while there were no public sector salary increases in 2010, 2011 or 2012.

Non-management employees will pocket the 6.2 per cent rise – an extra £1,478 a year on average – and council leaders hope that the more competitive employment package will help to attract skilled candidates for jobs.

Cllr Woodward ordered a review of the council’s pay structure and believes the move is a positive one. He said: “We have had issues around recruitment and retention and I believe it’s the right time to recognise and reward our staff.

“I’m absolutely delighted – it rewards and retains good staff, and it will help recruitment in future. I’m very proud of it, and we have preserved services.”

A council report says the gap between the national minimum wage and the lowest point of the council’s pay structure had been completely eroded, while management structure changes meant new responsibilities for some employees.

The pay rise means all employees other than senior management will receive a 2.2 per cent rise until April 1, 2015, when this will jump by a further four per cent.

Restructuring Senior management will be given a one per cent increase back-dated to April 1, 2014, and an average increase of 3.9 per cent from April 1, 2015.

The pay increase will cost the council an extra £370,000, which will be met by restructuring of the building services, the parking team and benefits team.