Hampshire Police Authority

20 November, 2001

Members' Allowances Scheme

Report of the Clerk

Contact: Mrs. Marion Boyes (01962 871595)

1. Summary

1.1. This report advises the Authority about new legislative provisions which come into force on 1 December, 2001 and which will provide for each Police Authority to decide its own allowances scheme.

1.2. The report proposes that the Authority's existing scheme be adopted as of 1 December, 2001 pending the introduction of its own local scheme with effect from 1 April, 2002. A further report in this respect will be presented to the Authority at its meeting in February, 2002.

2. Background - The Current Arrangements

2.1. The Police and Magistrates' Courts Act 1994 which set up police authorities in their current form was consolidated in the Police Act 1996. Under this legislation, the Home Secretary, subject to the approval of HM Treasury, has responsibility for deciding the allowances to be paid to police authority members.

2.2. The current "Home Secretary's Scheme" for police authorities outside London provides for Police Authority Members to be paid £17 an hour for "police authority business" upto a maximum of £7,500 in any year for a member and a maximum of £11,250 for the Chairman.

2.3. Police Authorities have, for many years, felt that these arrangements are inappropriate because of:

· The lack of clarity about what constitutes "police authority business"

· The tight control by Central Government over remuneration levels, unlike in the case of local councillors

· The difficulty of persuading the Home Office and HM Treasury to make changes to remuneration levels

· The lack of scope to remunerate members fully for their effort and time commitment under the Home Secretary's scheme.

3. The New System

3.1. Following pressure over a long period from the Association of Police Authorities (and its predecessor bodies), the Home Office has finally accepted that police authorities should have autonomy to manage their own business and that central prescription of police authority members' remuneration is inappropriate. Accordingly, legislative provisions amending the Police Act 1996 were included in the Criminal Justice and Police Act 2001. These provisions will come into force on 1 December, 2001.

3.2. An extract of the new legislative provisions is attached at Appendix A. In brief, these:-

· Provide for each police authority to decide its own allowances scheme

· Require each police authority to publish details of its allowances scheme every year

· Require police authorities to publish any revisions to their scheme before the changes can take effect

· Give the Home Secretary power to issue guidance to police authorities on local allowances schemes and to set ceilings on the level of payments to be made

3.3. Like local authorities, police authorities will now be able to decide the payments to be made to their members.

3.4. In order to assist police authorities to develop their local schemes, the APA set up an Independent Panel to take an independent and objective look at the allowances which should be paid to police authority members. This Panel has now submitted its report to the APA and guidance is currently awaited.

3.5. A copy of the report of the Independent Panel has been circulated previously to all Members of the Authority.

4. The Next Steps

4.1. In view of the potential significant cost implications of moving to a system of basic and special responsibility allowances, the Financial Affairs Panel will need to consider this matter at its meeting in December prior to a report being presented to the Authority at either its January or February meetings for final approval.

4.2. In the meantime, it will be necessary for the Authority, as a transitional measure, to "adopt" formally its existing "Home Secretary Scheme". In this way, the Authority can continue to make payments to members under the existing arrangements pending the introduction of its new local allowances scheme.

4.3. Travel and subsistence payments have not been deregulated and will continue to be set by the Home Office. The APA is in discussion with the Home Office about updating the current levels.

4.4. Under the new legislative provisions, each police authority must publish its local allowance schemes before any payments can be made under it. Advice from the APA suggests that publishing the Scheme with this report and placing details of the scheme on the authority's website will comply with the provisions. In this respect, a copy of the Authority's existing scheme is attached at Appendix B.

RECOMMENDATIONS:

(a) That the current position be noted.

(b) That the Financial Affairs Panel consider the detail of the new Members' Allowances Scheme including the setting of appropriate allowance levels.

(c) That, pending the development and introduction of the Authority's own local scheme, the Home Secretary's Scheme (The Authority's existing scheme) be adopted with effect from 1 December, 2001 and published accordingly.

(d) That a report setting out details of the Authority's new local scheme be presented to its meeting in February, 2002 for adoption.

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

1 Published works.

2 Documents which disclosure exempt or confidential information as defined in the Act.

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