Panel recommends increase in Peterborough councillor allowances

A panel has recommended that Peterborough city councillors should receive an allowance increase next year (2025/26).

Each year, Peterborough City Council appoints an independent remuneration panel (IRP) made up of local people to advise on the terms and conditions of the authority’s scheme of councillors’ allowances.

In 2024/25, all Peterborough councillors received a basic allowance of £11,812 to cover the costs of representing their wards. The IRP has recommended that this increases to £11,998.

Some councillors also receive special responsibility allowances (SRAs) for undertaking additional duties, such as the leader and deputy leader of the council, cabinet members, chairs of committees or leaders of opposition groups.

The IRP recommends that the leader of the council continues to receive an SRA of 300 per cent of the basic allowance (£35,994). It is also recommended that the deputy leader receives an SRA of 60 per cent of the leader’s allowance (£21,596).

Leaders of opposition groups are recommended to receive an allowance of 50 per cent of the leader’s allowance (£17,997) to be distributed on a pro-rata basis dependent on the number of members in each group. Cabinet members would also receive £17,997.

Councillors may also claim the cost of travel and subsistence expenses and for expenditure on the care of children or dependants whilst on approved duties.

Allowances are paid from council funds and are subject to income tax.

The IRP noted in its review that allowances should represent “reasonable compensation” to councillors for expenses they incur and time they commit in relation to their role, not payment for their work.

As part of the IRP’s review, a questionnaire was issued to all Peterborough councillors to support and inform the panel. Responses were received from 22 of the 60 current councillors, which helped to inform deliberations.

The IRP’s allowance recommendations will be discussed at a full council meeting on March 19.

Cllr Mohammed Jamil, Deputy Leader and Cabinet Member for Finance and Corporate Governance said: “All local authorities are legally required to appoint an independent panel to advise on the terms and conditions of councillors’ allowances. The panel has made recommendations for councillors to debate and decide on at the next Full Council meeting on 19 March.” “Councillors play an important role representing the interests of residents and need to dedicate lots of time to be an effective elected member. It is only fair they are recompensed, which enables people from all backgrounds to stand as representatives, regardless of their personal means or circumstance.”