Full Council
22 February 2012
Agenda Item No___12__________
REPORT OF THE INDEPENDENT REMUNERATION PANEL ON THE MEMBERS’ SCHEME
OF ALLOWANCES - JANUARY 2012
Summary:
The purpose of this report is to recommend to Full Council the
allowances and expenses to be paid to Members to take effect from
May 2012. In accordance with the requirements of the Local
Authorities (Members’ Allowances) (England) Regulations 2003, the
Council set up an Independent Remuneration Panel as agreed at the
December 2011 meeting of Full Council. The membership and terms
of reference for the Panel were also agreed at the December meeting
of Full Council.
Conclusions:
The Council is required to observe as part of the legislation, the
following; ‘before an authority makes or amends a scheme, it shall
have regard to the recommendations made in relation to it by an
independent remuneration panel’. The findings and recommendations
of the Panel are detailed in this report.
Recommendations:
That Members consider the recommendations of the Independent
Remuneration Panel, adopt a scheme of allowances and amend the
Constitution accordingly. Specifically, it is recommended that:
a) the Basic Allowance should remain at £4,054.88 pa;
b) the Scheme should remain index linked to officers’ pay awards;
c) the broadband allowance should remain at £180 pa subject to
Members agreeing a reduction to reflect the change in market
prices since 2008;
d) the Special Responsibility Allowance (SRA) for the Leader of
the Council should remain calculated by way of a multiplier of
x3 the basic allowance;
e) the SRA for Cabinet Members with Portfolio should remain
calculated by way of a multiplier of x2.33 the basic allowance;
f)
the SRA for Regulatory Committees of the Council should
remain calculated by way of a multiplier of x1.67 the basic
allowance;
g) until the relevant provisions of the Localism Act 2011 come into
force, the SRA in respect of the Standards Committee be paid
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22 February 2012
to the non-elected Chairman of that committee less the basic
allowance;
h) the SRA for the Chairman of the Council should remain
calculated by way of a multiplier of x1.33 the basic allowance;
i)
the SRA for the Leader of the main opposition group should
remain calculated by way of a multiplier of x1.33 the basic
allowance;
j)
payment of £50 per session (0.5 of a day) should continue to
be made to co-opted members of the Standards Committee;
k) the carers’ allowance should be set at the national minimum
wage for Child Dependants and the national minimum wage
plus £3 for Non-Child Dependants, with discretion being
delegated to the Chief Executive to increase this amount when
individual circumstances justified a higher payment;
l)
the payment of a carers’ allowance should be confirmed as
being extended to attendance at outside bodies and that this
should be explicitly stated within the Constitution;
m) the existing travelling and subsistence expenses scheme
should be maintained, and it should be subject to amendment
in accordance with prevailing national agreements;
n) the changes proposed by the Panel are not backdated, but
should take effect from the beginning of the municipal year, in
May 2012;
o) Members’ Allowances should remain ineligible for admission to
the Norfolk Local Government Scheme;
p) the existing arrangements for temporarily stopping the
payment of allowances to a Member while suspended from
their role are maintained until the relevant provisions of the
Localism Act 2011 come into force removing the power to
suspend a Member from their role.
Cabinet member(s):
Ward(s) affected:
All
All
Tony Ing, Strategic Director – Information
01263 516080, tony.ing@north-norfolk.gov.uk
Contact Officer, telephone number,
and e-mail:
1.
Introduction
1.1
The Independent Member Remuneration Panel (IRP), which was appointed for a 4 year
term with effect from 14 December 2011 consists of 3 members;
Paddy Seligman, John Wollocombe and Richard Draper.
The Chair of the Panel was selected by its members at the start of the meeting where it
was agreed that John Wollocombe would be the Chairman.
1.2
The IRP met on 13 January 2012 to consider the available evidence before making the
recommendations being put to the Council and was assisted by the Chief Executive,
Corporate Director – Information, and the Democratic Services Team Leader.
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22 February 2012
1.3
The Panel agreed the Terms of Reference as outlined below in section 2 of this report
and were appraised of the full range of roles covered by Members in carrying out their
duties as District Councillors in relation to the current Scheme of Members’ Allowances.
1.4
Consideration was given to the Terms of Reference of the Council’s Committees and
the frequency they meet as per the published Programme of Meetings.
1.5
Comparative data on Members’ Allowances Schemes throughout Suffolk and Norfolk
were also studied to help set a contextual benchmark for the North Norfolk Scheme.
2.
Terms of Reference
2.1
The Regulations provide that the IRP can make recommendations to the Council on the
following matters:
i)
The amount of basic allowance which should be payable equally to each elected
Member.
ii)
The roles and responsibilities for which a special responsibility allowance should
be payable and the amount of each such allowance.
iii)
Travelling and subsistence.
iv)
Co-optees’ allowance.
v)
Whether an allowance in respect of expenses of arranging for the care of
children and dependants should be included and, if appropriate, the amount of
allowance and means by which it is determined.
vi)
Backdating of allowances to the beginning of a financial year in which the
scheme is amended.
vii)
Annual adjustments of allowances.
viii)
Which Members are to be eligible for contributory membership of the Local
Government Scheme.
ix)
Whether basic allowance or Special Responsibility Allowance are eligible.
3.
Issues Considered and the Panel’s Conclusions
3.1
The issues under consideration and the Panel’s conclusions were as follows:-
3.2
Basic Allowance
The current scheme provides for a payment of a basic allowance, in the sum of
£4,054.88pa. The Basic Allowance is intended to reflect time commitment for all
councillors for ward work, meetings with Officers and attendance at group meetings.
After receiving evidence in respect of both committee and ward roles and reviewing
comparative schemes across Norfolk and Suffolk, and being mindful of the prevailing
economic circumstances and the fact there had been no significant or material structural
changes, the Panel felt that it was appropriate to maintain the basic allowance at its
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22 February 2012
current value. The Panel also felt that it was appropriate that Members’ allowances
remained index linked to the staff pay award.
While the Panel was comfortable with the allowance for broadband remaining at £180
pa, it was recommended that Members should consider a lower rate of (say) £150 pa,
being mindful of the changes in market prices since the previous review. Such a
reduction would realise a saving of £1,440 pa.
Recommendations
To recommend that the basic allowance should remain at £4,054.88 pa
To recommend that the Scheme should remain index linked to officers’ pay awards
To recommend that the broadband allowance should remain at £180 pa subject to
Members agreeing a reduction to reflect the change in market prices since 2008.
3.3
Special Responsibility Allowance
Special responsibility allowances (SRAs) are calculated as a multiplier of the basic
allowance. The Panel considered this to be an appropriate way to calculate SRAs and
concluded that it should continue.
SRAs can be paid to those members of the Council who have significant additional
responsibilities over and above the generally accepted duties of a councillor.
The Panel considered the full range of responsibilities that could attract the payment of a
SRA under executive arrangements.
3.3.1
Leader of the Council
The Leader currently receives a total allowance of £12,164.62 pa, which is calculated on
a multiplier of x3. The Panel noted the role of the Leader and the importance of the role.
The Panel considered that an increase in the multiplier could be justified to reflect the
significant responsibilities of the position, however, in the current economic
circumstances it was not felt appropriate to make a recommendation to do so at this
time.
Recommendation
To recommend that the SRA for the Leader of the Council should remain calculated by
way of a multiplier of x3 the basic allowance.
3.3.2 Cabinet Members with Portfolio
Currently, Cabinet Portfolio Members receive a total allowance of £9,447.54 pa, which is
calculated on a multiplier of x2.33.
The Panel had regard to the roles and responsibilities of Cabinet Members and was
satisfied the allowance should remain unchanged.
The Panel also agreed that, as currently the case, the role of Deputy Leader should not
attract an allowance over and above that of a Cabinet Member with Portfolio as this was
considered to be a party political/management appointment.
Recommendation
To recommend that the SRA for Cabinet Members with Portfolio should remain
calculated by way of a multiplier of x2.33 the basic allowance.
Full Council
3.3.3
22 February 2012
Chairmanship of Regulatory Committees – Overview & Scrutiny, Development,
Licensing, Standards and Audit
Currently, these Members receive a total allowance of £6,771.96, which is calculated on
a multiplier of x1.67. The Panel considered the terms of reference of these committees
and the regulatory responsibility they hold, which was considered to represent a
significant time commitment.
The Panel noted that, in accordance with Chapter 7 of the Localism Act 2011, at some
point after March 2012 the arrangements for Standards will change. There will no longer
be a provision for the co-option of independent members to a Standards Committee,
therefore, the role of the chairman would revert to an elected member. However, until
the relevant provisions come into force the current arrangements must continue.
Recommendations
To recommend that the SRA for Regulatory Committees of the Council should remain
calculated by way of a multiplier of x1.67 the basic allowance.
To recommend that, until the relevant provisions of the Localism Act 2011 come into
force, the SRA in respect of the Standards Committee should continue to be paid to the
non-elected Chairman of that committee less the basic allowance.
3.3.4 Chairman of the Council
The Chairman of the Council currently receives a total allowance of £5,392.66 pa, which
is calculated by way of a multiplier of x1.33. The Panel considered the significance of
the ambassadorial role of the Chairman in the North Norfolk Community. However, it
was felt there was no justification for increasing the multiplier in the current economic
circumstances.
Recommendation
To recommend that the SRA for the Chairman of the Council should remain calculated
by way of a multiplier of x1.33 the basic allowance.
3.3.5
Leader of the main opposition group
The Panel considered the role of the Leader of the main opposition group, which is
currently paid a total allowance of £5,392.66 pa, which is calculated by way of a
multiplier of x1.33 the basic allowance. The Panel considered the role in the context of
the regulations and the requirement that the allowance payment reflected the time
commitment of the role.
Recommendation
To recommend that the SRA for the Leader of the main opposition group should remain
calculated by way of a multiplier of x1.33 the basic allowance.
3.4
Co - opted members
The Council is currently required to appoint co-opted members to the Standards
Committee as independents and parish members to undertake duties relating to the
Code of Conduct. These Members are currently paid an allowance of £50 per session
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22 February 2012
(0.5 of a day) in the interest of seeking to attract talented independent member
participation and recognition of the role. Co-opted members are also entitled to claim for
reasonable travelling and subsistence expenses. As previously mentioned, the Localism
Act 2011 will remove the requirement to appoint independent members to the Standards
Committee, although provisions will remain for the co-option of parish members.
Recommendation
To recommend that payment of £50 per session (0.5 of a day) should continue to be
made to co-opted members of the Standards Committee.
3.5
Carer’s Allowance
At the time the carers’ allowance was considered by the Panel in 2007, it had seemed
reasonable to link it to the national minimum wage. Having reviewed comparative data
across other Norfolk and Suffolk authorities, it was apparent that carers’ allowance was
paid at different rates for different categories of dependants and that virtually all those
authorities extended the payment of carers’ allowance to attendance at outside bodies.
The Panel was mindful that costs of care could vary significantly depending on the
nature of the care needed. The cost of carer’s allowance was £907.63 in 2010/11 and is
£743.27 in 2011/12, year to date.
Recommendations
To recommend that the carers’ allowance should be set at the national minimum wage
(currently £6.08 per hour) for Child Dependants and the national minimum wage plus £3
for Non-Child Dependants, with discretion being delegated to the Chief Executive to
increase this amount when individual circumstances justified a higher payment.
To recommend that the payment of a carers’ allowance should be confirmed as being
extended to attendance at outside bodies and that this should be explicitly stated within
the Constitution.
3.6
Travelling and Subsistence
The current scheme is based upon nationally set rates that are payable in respect of
meetings and attendance in relation to rightful responsibilities or representation of views,
for example, meetings of the Council, site visits, outside organisations etc. The Panel
could see no justification for moving away from these arrangements.
Recommendation
To recommend that the existing travelling and subsistence expenses scheme should be
maintained, and that it should be subject to amendment in accordance with prevailing
national agreements.
3.7
Backdating of Allowances
The Panel could see no justification for suggesting that allowances should be backdated
to the beginning of the financial year in which the scheme is to be amended.
Recommendation
To recommend that the changes proposed by the Panel are not backdated, but should
take effect from the beginning of the municipal year, in May 2012.
Full Council
3.8
22 February 2012
Provision for Pensions
There is no requirement for members to be given a pensionable allowance and none of
the authorities in Norfolk currently offer their members a pensionable scheme on
allowances.
In 2007, the Panel was satisfied that Members should not be offered access to a
pensionable scheme and the current Panel was of the opinion that this position should
be maintained having considered (i) levels of Councillor turnover at elections, (ii) the
variable value of benefits to Councillors and (iii) the additional costs of admission and
ongoing contributions.
Recommendation
To recommend that Members’ Allowances should remain ineligible for admission to the
Norfolk Local Government Scheme.
3.9
Suspension
The scheme currently provides for the payment of allowances to be temporarily stopped
when a member is suspended from duty. Under the provisions of the Localism Act
2011, the power to suspend a member from their role will no longer be available as a
sanction for breaching the authority’s Code of Conduct. However, until the relevant
provisions come into force the existing arrangements must continue.
Recommendation
To recommend that the existing arrangements for temporarily stopping the payment of
allowances to a Member while suspended from their role are maintained until the
relevant provisions of the Localism Act 2011 come into force removing the power to
suspend a Member from their role.
4.
Financial Implications
4.1
The financial implications of the recommendations arising from the review of the
Members’ Scheme of Allowances are relatively limited. It will be a matter for the Council
to determine any additional costs or savings in relation to the Scheme when considering
and deciding on the adoption of recommended changes.
4.2
There would be a small saving if Members decided to reduce the value of the broadband
allowance and a small additional cost associated with the recommended changes to the
carers’ allowance. Other changes in costs would primarily arise from national pay, travel
and subsistence agreements.
5.
Risks
5.1
The main risk associated with the review of the Members’ Scheme of Allowances is
reputational in nature. When considering the findings and recommendations of the
Independent Remuneration Panel, Members should evaluate them in the spirit intended
and the context of the prevailing circumstances. While Members are required to have
due regard to the report of the Independent Remuneration Panel, it is still a matter for
the Council to decide whether it adopts the associated recommendations in full or part.
Full Council
22 February 2012
6.
Sustainability
6.1
There are no direct sustainability implications associated with the review of the
Members’ Scheme of Allowances.
7.
Equality and Diversity
7.1
The principal issue arising from the review that has equality and diversity implications
concerns the recommendation in relation to the carers’ allowance. The Panel was of the
opinion that the proposed uplift in this allowance and the associated discretion would
have marginal financial implications and would help to reduce potential barriers to
existing Members’ full participation and may encourage future prospective candidates to
come forward, where they have caring responsibilities.
8.
Crime & Disorder
8.1
There are no direct crime and disorder implications associated with the review of the
Members’ Scheme of Allowances.