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The report of the Independent Remuneration Panel appointed to review the allowances paid to Councillors
of South Oxfordshire & Vale of White Horse District Councils
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1. INTRODUCTION AND BACKGROUND
3. PRINCIPLES UNDERPINNING OUR REVIEW
3.1 The Public Service Principle
3.2 The Fair Remuneration Principle
4. CONSIDERATIONS AND RECOMMENDATIONS
4.2 Special Responsibility Allowances (SRAs)
4.3 Co-optees’/ Independent Persons Allowance
4.4 Travelling and Subsistence Allowance
4.5 Dependants’ Carers’ Allowance
4.8 Revocation of current Scheme of Allowances / Implementation of new Scheme
5.2 Councillors’ views on the level of allowances
5.3 Councillors' views on performance
Appendix 1 Basic Allowance/Special Responsibility Allowances/Co-Optees’ Allowance/ Dependants’ Carers’ Allowance / Mayoral Allowances – Summary of Recommendations |
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Appendix 2 IRP Review of Councillor Allowances Responses to the Questionnaire 2020 · Summary of Combined SODC VOWH surveys · South Oxfordshire DC Questionnaire Responses (PDF) · Vale of White Horse DC Questionnaire Responses (PDF |
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Appendix 3 Comparative data of allowances paid to councillors of the other Oxfordshire district councils (South East Employers, Members Allowances Survey 2020) |
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John Bradon – Local resident
David Rushton- Local resident
Mr Mark Palmer – Development Director, South East Employers (Chair)
(a) the amount of basic allowance to be payable to all councillors;
(b) the level of allowances and whether allowances should be payable for:
(i) special responsibility allowances, including those for new committees (Climate Emergency Advisory Committee);
(ii) travelling and subsistence allowance;
(iii) dependants’ carers’ allowance;
(iv) parental leave and.
(v) co-optees’ allowance.
and the amount of such allowances.
(c) whether payment of allowances may be backdated if the scheme is amended at any time to affect an allowance payable for the year in which the amendment is made.
(d) whether adjustments to the level of allowances may be determined according to an index and if so which index and how long that index should apply, subject to a maximum of four years before its application is reviewed.
Remuneration should not be an incentive for service as a councillor. Nor should lack of remuneration be a barrier. The basic allowance should encourage people from a wide range of backgrounds and with a wide range of skills to serve as local councillors. Those who participate in and contribute to the democratic process should not suffer unreasonable financial disadvantage as a result of doing so.[2]
(i) allowances should apply to roles within the Council, not individual councillors;
(ii) 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; and
(iii) special responsibility allowances are used to recognise the significantadditional responsibilities which attach to some roles, not merely the extra time required.
(i) the voluntary quality of a councillor’s role;
(ii) the need for appropriate financial recognition for the expenses incurred and time spent by councillors in fulfilling their roles; and
(iii) the overall need to ensure that the scheme of allowances is neither an incentive nor a barrier to service as a councillor.
· Representatives of a particular ward;
· Community leaders;
· Decision makers for the whole Council area;
· Policy makers for future activities of the Council;
· Scrutineers and auditors of the work of the Council; and
· Regulators of planning, licensing and other matters required by Government.
Required Time Input
Public Service Discount (PSD)
Remuneration Rate
Calculating the basic allowance
Council |
Oxfordshire District Councils: Basic Allowances (£) 2020[8] |
Cherwell District Council |
4,392 |
Oxford City Council |
5,142 |
South Oxfordshire District Council |
5,084 |
West Oxfordshire District Council |
4,932 |
Vale of White Horse District Council |
5,084 |
Average |
4,927 |
WE THEREFORE RECOMMEND that the Basic Allowance payable to all members of South Oxfordshire and the Vale of White Horse District Councils be £5,585 per annum.
· Leader of the Councils
· Deputy Leader of the Councils
· Members of the Cabinet
· The Chairman and Vice Chairman of Council
· Chairman of Scrutiny
· Chairman of the Planning Committee
· Chairman of the Joint Audit and Governance Committee
· Chairman of the General Licensing Committee
· Chairman of the Community Governance and Electoral Issues Committee
· Chairman of the Community Grants Panel
· Leader of the Opposition Group
· Chairman of the Climate Emergency Advisory Committee
One SRA Only Rule
WE THEREFORE RECOMMEND that that no councillor shall be entitled to receive at any time more than one Special Responsibility Allowance and that this One SRA Only Rule be adopted into the Scheme of Allowances.
The Maximum Number of SRA’s Payable
WE THEREFORE RECOMMEND that the Council work towards a maximum
number of SRA’s payable at any one time does not exceed 50% of Council
Members (19 Members in the Vale of White Horse and 18 Members in South
Oxfordshire District Council).
Calculating SRAs
Council allowance. Based on a multiplier of the Basic Allowance, this role carries the
most significant additional responsibilities and is the most time consuming.
We grouped together in Tiers those roles that we judged to have a similar level of responsibility. The outline result of this approach is illustrated in a pyramid of responsibility:
4.24 The rationale for these nine tiers of responsibility is discussed below.
Leader (Tier One)
WE RECOMMEND that the Leader of the Council continue to receive a Special Responsibility Allowance of 400% of the basic allowance, £22,340.
Deputy Leader (Tier Two)
WE RECOMMEND that the Deputy Leader receive a Special Responsibility Allowance of 60% of the Leader’s Allowance, £13,404. Should the role of Deputy Leader be undertaken on a shared basis then both Councillors should receive 60% of the Leader’s Allowance on a pro-rata basis.
Members of the Cabinet (Tier Three)
WE RECOMMEND that the Cabinet Members receive a Special Responsibility Allowance of 50% of the Leader, £11,170.
Chairman of Planning (Tier Four)
WE RECOMMEND that the Chairman of Planning should continue to receive an allowance of 30% of the Leader, £6,702.
Chairman of the Council (Tier Five)
WE RECOMMEND that the Chairman of Council should continue to receive an allowance of 25% of the Leader’s allowance, £5,585
Vice Chairman of the Planning Committee (Tier Six)
role of the Vice Chairman supporting and working alongside the Chairman is a
demanding role in terms of workload and impact. The Panel therefore continue to be
of the view that it receives a Special Responsibility Allowance proportionate to the
Chairman of the Planning Committee. We therefore recommend an allowance of 50%
of the Chairman’s allowance, £3,351.
WE RECOMMEND that the Vice Chairman of the Planning Committee continue to
receive an allowance of 50% of the Chairman’s allowance, £3,351.
Chairman of the Scrutiny Committee and Chairman of the Climate Emergency Advisory
Committee (Tier Seven)
WE RECOMMEND that the Chairman of the Scrutiny Committee and the Chairman of the Climate Emergency Advisory Committee receive a Special Responsibility Allowance of 15% of the Leader’s Allowance, £3,351.
Leader of the Opposition Group (Tier Eight)
demanding role which also ensures accountability and scrutiny of the Council
Leadership. The Leader of the Opposition Group also has to lead and manage a
political group. We therefore recommend that the Leader of the Opposition Group
should receive a Special Responsibility Allowance of 10% of the Leader’s Allowance,
£2,234.
councillors in their Group then the Special Responsibility Allowance of 10% of the
Leader’s Allowance should be paid to each of the Group Leaders.
WE THEREFORE RECOMMEND that the Leader of the largest Opposition Group
receive a Special Responsibility Allowance of 10% of the Leader’s Allowance,
£2,234. Should two or more of the Minority/Opposition Group Leaders have the
same number of councillors in their Group then the Special Responsibility
Allowance of 10% of the Leader’s Allowance should be paid to each of the Group
Leader’s. The allowance is also only payable if the Opposition Group have at
least 15% of total Council Membership (currently six Group Members in the Vale
of White Horse District Council and five in South Oxfordshire District Council).
Vice Chairman of Council, Chairman of General Licensing Committee, Chairman of the Joint Audit and Governance Committee, Chairman of the Community Grants Panel and Chairman of the Community Governance and Electoral Issues Committee(Tier Nine)
WE RECOMMEND that the Vice Chairman of the Council to receive a Special Responsibility Allowance of 30% of the Chairman’s allowance, £1,676. The Chairman of the Joint Audit and Governance Committee, the Chairman of the General Licensing Committee, the Chairman of the Community Governance and Electoral Issues Committee and the Chairman of the Community Grants Panel receive a Special Responsibility Allowance of 7.5% of the Leader’s Allowance, £1,676.
WE RECOMMEND that co-optees/Independent Persons continue to receive travel, subsistence and other expenses in accordance with the scheme applicable to councillors.
WE RECOMMEND that travelling and subsistence allowance should be payable to councillors and co-opted/Independent Persons in connection with any approved duties. The amount of travel and subsistence payable shall continue to be at the maximum levels payable to council staff in line with HM Revenue ad Customs’ rates. We propose no changes to the travel and subsistence allowances.
WE THEREFORE RECOMMEND that the Dependants’ Carers’ Allowance should continue as outlined in the current Scheme of Allowances and be based on two rates. Rate one for general care to now be linked to the Real Living Wage as recommended by the Living Wage Foundation, currently £9.50 per hour, with no monthly maximum claim. This rate is reviewed by the Living Wage Foundation in November each year.
Rate two should be for specialist care based at cost upon production of receipts and requiring medical evidence that this type of care is required, with no monthly maximum claim when undertaking Approved Duties.
WE ALSO RECOMMEND that any costs incurred for the arrangement of care should be reimbursed at cost to the councillor. Finally, the current eligibility conditions for receipt of this allowance is payable when undertaking the list of Approved Councillor duties. The Council should also actively promote the allowance to prospective and new councillors both before and following an election. This may assist in supporting greater diversity of councillor representation.
for maternity, paternity or adoption leave. According to the Fawcett Society (Does Local
Government Work for Women, 2018) a ‘lack of maternity, paternity provision or
support’ is a real barrier for women aged 18-44 to fulfil their role as a councillor.
not wish to stipulate an exact policy/procedure. The Panel is aware
that the Local Government Association has developed a model policy that has been
adopted by a growing number of councils across the south east region.
However, as a way of improving the diversity of Councillors, the Panel would
recommend that the Members’ Allowance Scheme should be amended to include
provisions that clarify that:
· All Councillors shall continue to receive their Basic Allowance in full for a period up to six months in the case of absence from their Councillor duties due to leave relate to maternity, paternity, adoption shared parental leave or sickness absence
· Councillors entitled to a Special Responsibility Allowance shall continue to receive their allowance in full for a period of six months, in the case of absence from their Councillor duties due to leave related to maternity, paternity, adoption, shared parental leave or sickness absence
· Where for reasons connected with sickness, maternity leave, adoption leave, paternity leave or shared parental leave a Councillor is unable to attend a meeting of the Council for a period of six months, a dispensation by Council can be sought in accordance with Section 85 of the Local Government Act 1972
· If a replacement to cover the period of absence under these provisions is appointed by Council or the Leader (or in the case of a party group position the party group) the replacement shall be entitled to claim a Special Responsibility Allowance pro rata for the period over which the cover is provided.
· If a Councillor stands down, or an election is held during the period when a Councillor is absent to due to any of the above and the Councillor is not re-elected or decides not to stand down for re-election, their Basic Allowance any Special Responsibility Allowance will cease from the date they leave office.
WE RECOMMEND that the approach outlined is adopted as a basis of a policy
to support parental leave for councillors. Should a policy on Parental Leave for
Councillors be approved it should be actively promoted to prospective and
current Councillors alongside the Dependants’ Carers Allowance. This should
form part of a wider ‘Be A Councillor’ (LGA led initiative) programme led by the
Council and supported by political groups; to enhance and increase the
diversity of councillor representation.
WE RECOMMEND that the basic allowance, each of the SRAs and the Co-Optees’ /Independent Persons Allowance be increased annually in line with the percentage increase in staff salaries from May 2022 for a period of up to three years. After this period the Scheme shall be reviewed again by an independent remuneration panel.
WE THEREFORE RECOMMEND that the new scheme of allowances to be agreed by the Council be implemented with effect from the beginning of the 2021-22 financial year, at which time the current scheme of allowances will be revoked.
regarding the payment of allowances regardless of individual Councillor performance.
Phrases noted included “efficiency” and “value for money”, whilst “some councillors just
take the money” and “those Councillors who put the time in should be rewarded” were
also said.
issues, such matters being outside the scope of the review. Therefore any such
comments have not been taken forward by the Panel, although Councillors may wish
to consider this aspect in a different context.
WE THEREFORE RECOMMEND: That no changes are made to the Approved Duties as outlined in the Members’ Allowance Scheme.
Mark Palmer (Chair of the Independent Remuneration Panel)
Development Director, South East Employers
December 2020
Appendix 1: Summary of Panel’s Recommendations
Current Amount for 2020-21 |
Number |
Recommended Allowance (40% PSD) |
Recommended Allowance Calculation |
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Basic (BA) |
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Total Basic: |
£5,084 |
38 & 36 |
£5,585 |
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Special Responsibility: |
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Leader of the Council |
£20,334 |
1 & 1 |
£22,340 |
400% of BA |
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Deputy Leader |
£14,234 |
1 & 2 |
£13,404 |
60% of Leader’s Allowance |
|
Cabinet Members |
£10,166 |
6[10] & 5 1 |
£11,170 |
50% of Leader’s Allowance |
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Chairman of Council |
£5,084 |
1 & 1 |
£5,585 |
25% of Leader’s Allowance |
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Vice Chairman of Council |
£1,526 |
1 & 1 |
£1,676 |
30% of Chairman’s Allowance |
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Chairman of Planning Committee |
£6,101 |
1 & 1 |
£6,702 |
30% of Leader’s Allowance |
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Vice Chairman of Planning |
£3,050 |
1 & 1 |
£3,351 |
50% of Chairman’s Allowance |
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Chairman of Scrutiny Committee |
£3,050 |
1& 1 |
£3,351 |
15% of Leader’s Allowance |
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Chairman of the Joint Audit & Governance Committee |
£1,526 |
1 & 1 |
£1,676 |
7.5% of Leader’s Allowance |
|
Chairman of General Licensing Committee |
£2,033 |
1 & 1 |
£1,676 |
7.5% of the Leader’s Allowance |
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Chairman of the Community Grants Panel 2 |
£1,526 |
1 |
£1,676 |
7.5% of Leader’s Allowance |
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Leader of Opposition Group |
£2,033 |
1 & 1 |
£2,234 |
10% of Leader’s Allowance |
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Chairman of the Community Governance and Electoral Issues Committee |
£1,526 |
1 |
£1,676 |
7.5% of the Leader’s Allowance |
|
Climate Emergency Advisory Committee |
N/A |
1 |
£3,351 |
15% of the Leader’s Allowance |
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[1] The former Office of Deputy Prime Minister – now the Department for Communities, Housing and Local Government, and Inland Revenue, New Council Constitutions: Guidance on Consolidated Regulations for Local Authority Allowances, London: TSO, July 2003, paragraph 68.
[2] Rodney Brooke and Declan Hall, Members’ Remuneration: Models, Issues, Incentives
and Barriers. London: Communities and Local Government, 2007, p.3.
[3] The former Office of Deputy Prime Minister – now the Department for Housing, Communities and Local Government, and Inland Revenue, New Council Constitutions: Guidance on Consolidated Regulations for Local Authority Allowances, London: TSO, July 2003, paragraph 67.
[4] The former Office of Deputy Prime Minister – now the Department for Communities and Local Government, and Inland Revenue, New Council Constitutions: Guidance on Consolidated Regulations for Local Authority Allowances, London: TSO, July 2003, paragraphs 66-81.
[5] The summary responses to the questionnaires are available on request.
[6] The basic allowance, special responsibility allowance, dependants’ carers’ allowance, and co-optees’ allowance are taxable as employment income.
[7] The Nomis official labour market statistics: Hourly Pay – Gross median (£) For full-time employee jobs by place of residence: UK December 2019.
[8] Figures drawn from the South East Employers, Members’ Allowances Survey 2020 (October 2020).
[9] The former Office of Deputy Prime Minister – now the Department for Housing Communities and Local Government, and Inland Revenue, New Council Constitutions: Guidance on Consolidated Regulations for Local Authority Allowances, London: TSO, July 2003, paragraph 72.
[10] Excludes the Leader and Deputy Leader, i.e., the Cabinet has 8 members in each Council.
2 Chairman of Community Grants Panel is applicable to South Oxfordshire District Council only.