Members’ allowances to rise for first time in a decade

Published: Tuesday, November 28, 2023

An agreement has been reached to increase the allowances paid to councillors for performing their public duties after being frozen for the past decade.

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Following the ten-year freeze on councillors’ allowances, they had fallen to a level significantly lower in real terms than in 2013. 
 
To remedy this, it has been agreed that all councillors will see an uplift in their allowances worth just over four per cent – still well below inflation and in-line with the nationally determined pay settlement awarded to council staff.   
 
When considering remuneration levels Wandsworth, like all other London local authorities, is required to have regard to the report of the Independent Panel on the Remuneration of Councillors in London.
 
This independent report states: “Councillors oversee million-pound budgets, balancing complex financial pressures at a time of severe cutbacks in local authority spending, making decisions which will affect their areas for decades to come.”
 
It details the growing pressures on councillors, with demand for council services growing, and digital improvements increasing and improving the connectivity of councillors with local residents. 
 
The report also warns that inadequate remuneration risks becoming a barrier to the principle that everyone should be able to consider representing their community. It states: “It is clearly desirable that service as a councillor is not confined to those who have retired or those with independent means.”
 
As a result of the decade long freeze on allowances, it has become clear that the current level of remuneration does not reflect the level of responsibility and workload undertaken. 
 
This applies in particular to those councillors eligible for Special Responsibility Allowances due to the additional responsibilities and duties they perform. Although these allowances are supposed to rise each year in line with local government pay settlements for London, they have not changed since 2010. 
 
This is also apparent for members who are tasked with chairing the Audit, Pensions and Grants committees. In recognition of the specialist technical knowledge required for these positions, a modest Special Responsibility Allowance worth £2,800 a year has been introduced for these challenging roles.
 
And in line with existing precedent, it has been decided to restore the allowance payable to the majority party chief whip to the same level as awarded under previous administrations.
 
A report to councillors from the Director of Finance states that all these changes can be fully funded from existing budgets.