Pay rise recommended for Peterborough councillors totalling £15,000

An independent panel has backed increasing the basic allowance for all 60 city councillors by £155 to £10,663 a year from April - at a cost of £9,300.

Members taking on extra roles would also receive a pay rise if the recommendations are voted through next week.

Under the proposals, council leader Cllr John Holdich would see his annual allowance rise from £31,524 to £31,989 - an increase of £465.

The council leader said he did not believe his allowance should go up but pledged to go with the majority verdict among his Conservative colleagues, adding that councillors had differing financial circumstances.

Any increase in member’s allowances would be controversial at a time when the council has argued that it cannot meet its legal duty to produce a balanced budget without government support due to years of cuts to its funding and the impact of the coronavirus.

More than four years ago, the decision by councillors to accept a near 27 per cent pay rise after an eight year freeze - costing the cash-strapped local authority £186,000 a year - sparked anger.

The Conservatives voted through the recommended increase which Labour later tried to overturn, although leaked minutes of an internal meeting suggested some of its members still wanted to collect the extra money.

The Lib Dems were also criticised for abstaining on the proposals.

The party will decide how to vote at next week’s Full Council meeting during its meeting on Wednesday evening.

Group leader Cllr Nick Sandford said: “Last time we abstained on the members’ allowances panel report as our view is that councillors should not be deciding what they themselves are paid.

“We have said that the panel recommendations should be mandatory, as are the recommendations from the panel that looks at pay for MPs.

“We all have views on what councillors should be paid but it is better for it to be determined independently, so I think it is likely we will either support the panel proposals or abstain.”

Leader of the council’s Green group Cllr Julie Howell said: “Councillor’s allowances are what enable many ordinary people, such as working teachers and NHS workers, disabled people and people with family commitments to fulfil the role to a high standard, and we feel that a rise from the current level is justified given the crucial role many councillors play within our communities.

“Remember, this isn’t a wage and it is taxed. It is an allowance to enable councillors to be councillors without having to fund their activities from their own pockets.

“However, the timing of this proposed increase is poor giving the hardship so many of our residents are experiencing. The Green group is in favour of the introduction of a Universal Basic Income where citizens are paid a non-means tested sum from the state to cover the basic cost of living.”

The latest recommendation by the independent panel says allowances should also increase in line with staff pay rises from May 2022 for the following three years before being reviewed, meaning the annual £15,387 rise could increase further.

It also calls on the council to provide support for people on parental leave.

There is no legal right to parental leave of any kind for people in elected public office. However, the panel said introducing this would “improve the diversity of councillors”.

Its suggestion was for councillors to receive their allowances in full for six months if they are absent due to sickness or maternity, paternity or adoption leave.

Councillors are entitled to a Special Responsibility Allowance (SRA) if they fulfil an additional role, such as being in the Cabinet or chairing a scrutiny committee.

The recommendation is for councillors to only receive one SRA, even if they are eligible for more.

Members can also receive allowances related to travel and subsistence, as well as for childminders and babysitters and specialist dependent relative care.

Leader of the council’s Labour group Cllr Shaz Nawaz, who like other groups leaders receives an additional allowance for his role, said: “The review from the Independent Remuneration Panel, and the basis they have used for the allowances, seems practical and logical.

“I know many councillors spend more than 25 hours per week on council business including all the work they do in their respective wards. I also know there are quite a few councillors who are worse off financially due to the amount of time and effort they commit to council business and ward work.

“I am pleased that the review is conducted by an independent panel because this removes any bias and conflict of interest. Our group is yet to discuss in detail the findings from the review and we will make a decision on which way to vote before Full Council on January 27.”

Leader of the Werrington First group Cllr Stephen Lane said: “Werrington First will not support any increase in members’ allowances this year. Although we are usually independent in our decision-making we fully agree on this.

“It would send the wrong message whilst the country is struggling to cope. Many hard-working families cannot maintain their income and rely on the Government furlough scheme, whilst some have even lost their jobs completely. Small businesses and the self-employed are in shutdown, sometimes for good, and many go into debt just to survive.

“No, an increase is not on our agenda for now, nor will it be until the country is clear of this pandemic.”

The panel led by Mark Palmer, development director for South East Employers, spoke to current councillors and considered allowances offered at other local authorities before making its recommendations.

Out of 20 councillors who responded to questions, 14 said the current basic allowance of 10,508 a year was appropriate.

Asked how many hours a week they do as a councillor, answers ranged from 1 to 55.

The biggest criticism of the current system is the £7,881 currently given to committee chairs, with some councillors arguing that they do little extra work than other committee members who receive no additional pay.

The 1.47 per cent recommended rise in the basic allowance was calculated by determining the amount of time required each week to fulfil the role of a councillor (25 hours), multiplied by an hourly rate of £13.67, with a 40 per cent public service duty discount added in.

The council leader’s SRA is then set as three times the basic allowance, with other SRAs then calculated as a percentage of the leader’s allowance.

The proposed new allowances

Basic: From £10,508 to £10,663 (60)

Leader of the Council: From £31,524 to £31,989

Deputy Leader: From £21,017 to £19,193

Cabinet Members: From £15,762 to £15,995 (8

Cabinet Advisers: From £7,881 to £7,997

Chairman of Planning & Environmental Protection Committee: From £9,457 to £9,567

Chairman of Licensing Committee: From £7,881 to £7,997

Chairman of Audit Committee: From £7,881 to £7,997

Chairmen of Scrutiny Committees: From £7,881 to £7,997 (4)

Chairman of Corporate Parenting Committee: From £7,881 to £7,997

Chairman of Employment Committee: From £1,970 to £3,199

Chairman of Constitution and Ethics Committee: £3,199 (previously did not exist)

Leaders of Opposition Groups: From £7,881 to £7,997 (split depending on how many members each group has)

Independent Person of the Council: Remains at £1,000

Deputy Independent Persons of the Council: Remains at £500

Co-opted Members: Remains at £250.