Decision details

Members Allowances - Interpretation of Impact of NJC Pay Award 2024/25

Decision Maker: Lucy Townsend (Chief Executive)

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Decision:

To update the Members Allowances Scheme for 2024/25

Reasons for the decision:

On 20 July 2021 Full Council approved a Members Allowances Scheme regarding the remuneration of elected Members. This followed consideration of a report and recommendations from an Independent Remuneration Panel (IRP), as required by the Local Authorities (Members’ Allowances) (England) Regulations 2003.

That scheme states “Full Council has agreed the annual pay award to council staff as the index by which annual adjustments are made to the basic allowance and the special responsibility allowances payable to individual Members for the period from April 2021- March 2025”.

As was the case for 2022/23 and 2023/24, the NJC Pay Award for 2024/25 was agreed as a lump sum, in this case of £1290 for all NJC pay points 1 and above. If applied as a flat rate to the Members Basic Allowance for 2024/25, this would have represented a 7.6% increase on the 2023/24 basic allowance.

Prior to 2022/23 the award had been agreed with an average percentage increase. In accordance with the approved Scheme for Wiltshire Council, this has been applied automatically, as there is no provision or requirement within the Scheme for increments to be approved on an annual basis, as this is the purpose of the indexing.

As it was at the time a new approach in 2022/23 the IRP was consulted for a view on how to apply the flat rate award vs a percentage increase, given the wording of the Scheme.

After considering the view of the IRP the Monitoring Officer was consulted. His view was that a natural reading of the Scheme as it exists, would be to apply the average increase for all staff to all allowances. The Scheme explicitly states that any increase also applies to Special Responsibility Allowances, and therefore any decision not to do so would necessitate an amendment to the Scheme. The role of councillor is not tied with a specific pay grade of staff, and therefore in his view any recommendation to do so would lie outside the scope of the Scheme as it presently stands.

It was therefore determined that the meaning of the existing Members Allowances Scheme, as set out in Part 13 of the Constitution, would be to apply the average level of staff increase as the increase to allowances as the relevant index.

As the same type of flat rate increase was agreed for 2024/25, the same principle will be applied in accordance with the Allowances Scheme as the index by which automatic annual adjustments will be made to the basic allowance and special responsibility allowance.

This decision is therefore simply to note the application of the existing Members Allowances Scheme.

For the year 2024/25 the average increase from the staff pay award is 3.95%

In 2023/24 the total expenditure for Members Allowances was £2.287m. A 3.95% increase would therefore lead to an approximate expenditure around £2.377m, depending on the level of expenses claimed on top of any allowances.

It is open to any Member to forgo any part of their allowance entitlement if they wish.

I confirm that in making this decision I have considered the following in line with Wiltshire Council’s Constitution

Key decision requirements: Non-key decision

Views of relevant cabinet member(s), committee chairman, area board(s): As an interpretation of the existing scheme only, the Cabinet were advised of the conclusion of the Director for 2022/23.

Consideration of the area boards and delegated decision checklist for officers on the issue of when and how to involve local councillors and area boards in decisions about local services: Not a decision regarding local services.

Implication of any council policy, initiative, strategy or procedure: Not applicable

Consultation in accordance with requirements and expectations of consultation with the public: No consultation is required.

Range of options available: As the principle of different options in response to a flat rate was established in 2022, alternative options were not necessary.

Staffing, financial and legal implications: Any increase would have some financial implications, as set out above.

Risk assessment: Not applicable

Involvement of statutory officers and/or directors: The Monitoring Officer discussed the decision with the Chief Executive and CLT.

Regional or national guidance from other bodies: Guidance issued by bodies such as the LGA was considered.

The council’s constitution: This decision reflects the position of Part 13 of the Constitution

This contract is suitable for execution under the e-signature process: Not applicable

Alternative options considered:

Alternative options were considered as set out by the IRP in 2022.

Conflict of Interest: Not applicable

Background: As the Proper Officer under Part 3 of the Constitution, I take this decision in accordance with Part 3D1 and paragraph 1.9 in consultation with the Monitoring Officer (in the absence of specific mechanism as set out below) and to deliver agreed strategy, plans and policy, that is the agreed Members Allowances Scheme as set out in Part 13 of the Constitution.

Contact: Lucy Townsend, Chief Executive Email: lucy.townsend@wiltshire.gov.uk.

Publication date: 11/11/2024

Date of decision: 11/11/2024

Accompanying Documents: