Archived decisions

At a Meeting of Hampshire County Council held at The Castle, Winchester on Thursday, 20 February, 2003 at 10.00 a.m.

Chairman :

p Councillor P.R.C. Hutcheson

Vice-Chairman:

p Councillor Mrs. M.D. Snaith

Councillors:

p Mrs S.E. Allbright

p D.G. Allen

p Mrs A.E. Bailey

Mrs. E.S.M. Barron

p Mrs P.G. Banks

p R. J. Baulk

p I.F.E. Beagley

p Carol Boulton

F.J. Bright

p P.R. Brown

p J.V. Bryant

p Mrs. E.M. Byrom

p M.F. Cartwright

p K.G. Chapman

p P.J. Chegwyn

p J.E. Coles

p A.P. Collett

p B.D. Dash

p C.R.H. Davidovitz

p G.W. Davies-Dear

p Mrs. P.M. Devereux

p Mrs. P. Dickens

p A.G. Dowden

p Dr. R.J. Ellis

p Capt. K.B. Estlin

p W.J. Filer

p Mrs. J.K. Frankum

p E.F. Gale, M.B.E.

p M.S. Geddes

p D. Gillett

p Mrs S.M. Glasspool, D.L.

p J.K. Glen

p B.T. Gurden

p Mrs. D.R. Harrison

p S.A. Hayes

p P.A. Heath

p Mrs. K. Heron

p Felicity Hindson, M.B.E.

p Mrs. P.G.E. Holden-Brown

p K. House

p Jo Kelly

p M.J. Kendal

p R.J. Kimber

p D.A. Kirk

p T.G. Knight

p Mrs C.A. Leversha

p A.R. Ludlow

P. Luffman

p P.K. Mason

p R.C. McIntosh

p Mrs. A.M. McNair Scott

p Mrs. P.G. Peskett

p P.A. Pierce

p R.H. Price

p Mrs. E.M.F. Randall

p A.W. Rice, T.D.

p M.J. Roberts

p Sir James Scott

p K.P.J. Searle

p M.L. Sheehan

p Mrs. V. Steel

p J.W. Stocks

p T.K. Thornber, C.B.E.

p J. Waddington

p Dr. J.G.L. Wall

p J.K. West

p Mrs P.A. West

p W.H. Wheeler

p M.J. Woodhall

p Jenny Wride

p D.F. Wright

138 THE LATE LT CDR PETER BEER AND JOHN BETTERIDGE.

At the start of the meeting the Chairman reported with deep regret the recent passing of former County Councillors Lt. Cdr. Peter Beer and John Betteridge. Members paid tribute to their commitment and service to the Hampshire community and their local communities of Havant and Totton respectively. The Council stood in silence as a mark of respect to their memories.

139 MINUTES.

The Minutes of the meeting of the County Council held on 28 November 2002 were confirmed and signed by the Chairman.

140 BASINGSTOKE NORTH WEST COUNTY ELECTORAL DIVISION.

On behalf of the Council the Chairman welcomed Councillor J.D. Shaw to his first meeting as the new County Councillor for Basingstoke North West County Electoral Division.

141 DECLARATION OF INTERESTS.

Members were mindful that, where they believed they had a personal or personal prejudicial interest in any matter to be considered at the meeting, they should normally at the time of the debate, declare their interest and, having regard to the circumstances described in paragraphs 9, 10, 11 and 12 of the County Council's Code of Conduct, consider whether to leave the meeting whilst the matter was discussed.

142 DEPUTATION.

Mr. G. Lane, who had been due to address the Council, was indisposed and would make his deputation instead to the Education Policy Review Committee.

143 CHAIRMAN'S COMMUNICATIONS.

The Chairman welcomed Honorary Aldermen Harvey Cole and George Raymond to the meeting.

A summary of events at which the Chairman had represented the County Council had been made available for Members' information of which the Chairman drew particular attention to the collection of £423 at the staff carol concert for the Naomi House Children's Hospice and his presentation with the Vice Chairman of this, together with a cheque for £5,000 in respect of a grant which the Leader had approved, to Naomi House. He and the Vice Chairman had been very impressed by the work being done there to help families in their times of great need.

144 LEADER'S REPORT.

The Leader advised the Council that the result of the Basingstoke North West County Electoral Division By-election impacted on proportionality on committees and that the Leaders of the opposition parties had been asked to let the Chief Executive know where changes were to be made.

(Note: The revised proportionality table is appended to these minutes)

At its previous meeting the Council agreed that the Environment, Recreation and Heritage and Social Care Policy Review Committees should be reduced in size from 24 to 18 members. The Council had not agreed a start date for the reduced numbers and the Leader took the opportunity to suggest, and the Council agreed, that the new sizes should be effective from the start of the new financial year.

The Leader reported that an order for the new sound system for the Council Chamber had been placed at a cost of £42,000. The installation would take place beginning Monday, 17 March 2003. The existing system was being used for the last time at this meeting.

The Leader expressed his gratitude that the media both nationally and locally had played their part in helping their readers and listeners to understand the reasons why Hampshire's council tax was proposed to increase by 15 per cent this year. He thanked them for their support. The Hands Off Hampshire Campaign, run by the Corporate Communications Team had resulted in well over 140 separate articles and letters in the press since the autumn and radio and television interviews and reports. That, together with the statements made by local MPs, across all parties, both in the House of Commons, in letters and in the press, and the comments from all those people who signed the County Council's petition and wrote letters, left the Leader in no doubt that Hampshire had been doing all it could to ensure that Ministers had every opportunity to hear the "Hands off Hampshire" message and the Hampshire community's opposition towards the new funding arrangements. The Leader emphasised that the fight to put right this wrong did not end here. He would continue to press the Government hard to review its funding of Hampshire and other counties in the south east.

The Leader, in closing, advised the Council that he was minded to ask the Standards Committee to consider an extension of Members' question time to allow Cabinet members to be asked questions, without notice, on any matter on which they had made Executive decisions in the cycle of meetings preceding a Council meeting.

145 QUESTIONS PURSUANT TO STANDING ORDER 20(b)(i).

Councillor T.K. Thornber, CBE, Leader of the Council, answered a question from Councillor M.J. Roberts concerning the County Council's staff travel plan.

Councillor Felicity Hindson, Executive Member for Social Care, answered a question from Councillor Mrs P.G. Banks concerning the delivery of care to children in the light of Lord Laming's report and recommendations.

Councillor Felicity Hindson, Executive Member for Social Care, answered a question from Councillor Mrs. P.G.E. Holden Brown concerning vulnerable children in the light of Lord Laming's report and recommendations.

Councillor K.B. Estlin, Executive Member for Environment, answered a question from Councillor K. House concerning school crossing patrols.

Councillor Felicity Hindson, Executive Member for Social Care, answered a question from Councillor Mrs P.G.E. Holden Brown concerning the use of drugs in County Council and private homes for the elderly in relation to dementia.

Councillor T.K. Thornber, CBE, Leader of the Council, answered a question from Councillor Mrs. P.G. Peskett about the education of young offenders.

146 APPOINTMENTS.

On the report of the Leader of the Council it was

ORDERED:

That Mrs Urzula Topp be appointed a co-opted member of the Education Policy Review Committee representing the Roman Catholic Church.

147 REVENUE BUDGET AND PRECEPT 2003/04 AND CAPITAL PROGRAMME 2003/04 - 2006/07

Councillor T.K. Thornber, CBE, Leader of the Council, presented the report and recommendations of the Cabinet in relation to the Revenue Budget and Precept 2003/04 and the Capital Programme 2003/04 - 2006/07. In the light of the recent announcement in relation to the teachers' pay award from 1 April 2003, the Leader also proposed an amendment to the recommendation, seconded by Councillor D.G. Allen, as follows:

"That Recommendation (i) be deleted and replaced with

(i) That the revenue budget for 2003/04 as set out in the attached draft budget book be approved subject to:


· deletion of £545,000 from teachers' salaries

· addition of £300,000 to free school meals

· addition of £245,000 to behaviour intervention services"


Councillor A.P. Collett, seconded by Councillor B.D. Dash, proposed the following amendment:

"That the following amendments be made to recommendations (i) to (v) of Item 8 on the revenue budget and precept 2003/04:

i) That the revenue budget for 2003/04 as set out in the attached draft budget book be approved subject to:

Withdrawal of £10.5m from the grant equalisation reserve

Additions to the budgets for:		£'000
·	improvements to the youth service	225
·	actions to be taken with the contractor to provide sufficient recycling capacity during 2003/04 to avoid recyclables being landfilled, with any additional pass-through costs being met within the waste management contingency or balances	-
·	raise foster care allowances to the national rate over a two year period	300
·	increased support for care leavers	25
·	improved recruitment and retention of staffing in Social Services	500
·	respite care in south-east Hampshire for children with disabilities	250 --------
		1,300 --------
To be financed by:
·	efficiency savings on non-pay budgets, excluding schools and purchased services	300
·	reduce Hampshire Now from three to two editions per year	100
·	savings on corporate communications and publication costs throughout the County Council	400
·	reduction in the contingency assumed for a rise in interest rates during 2003/04 from the current 3.75% base rate	500 -------
		1,300 -------

ii) That the total budget requirement for the general expenses of the County Council for the year beginning 1 April 2003 be £1,021,605,000

iii) That the County Council's basic council tax for the year beginning 1 April 2003 be £822.42

iv) That the County Council's council tax for the year beginning 1 April 2003 for properties in each tax band be:

	£
Band A	548.28
Band B	639.66
Band C	731.04
Band D	822.42
Band E	1,005.18
Band F	1,187.94
Band G	1,370.70
Band H	1,644.84

v) That precepts be issued totalling £390,700,769.66 on the billing authorities in Hampshire, requiring the payment, in such instalments and on such dates set by them and previously notified to the County Council, in proportion to the tax base of each billing authority's area as determined by them as set out below:

Basingstoke and Deane Borough Council	57,541.90
East Hampshire District Council	45,153.49
Eastleigh Borough Council	41,664.81
Fareham Borough Council	41,076.00
Gosport Borough Council	25,462.70
Hart District Council	35,252.00
Havant Borough Council	41,925.00
New Forest District Council	69,483.70
Rushmoor Borough Council	29,074.34
Test Valley Borough Council	44,019.00
Winchester City Council	44,409.40"

Councillor W.H. Wheeler, seconded by Councillor Jo Kelly, proposed the following amendment:


"(i) That the revenue budget for 2003/04 as set out in the attached draft budget book be approved subject to the following changes:

	£'000
reduction in grants to voluntary organisations and other bodies (excluding grants to councils of community service, Community Action Hampshire, citizens advice bureaux and Hampshire Association of Parish Councils)	250
reduction in number of volumes and costs of `Hampshire Now'	150
redeployment and vacancy management of staffing in communications team	150
reduction in extra resource allocated for sustaining repairs of local roads and footways	500
deletion of additional balances set aside for possible use in 2003/04	1693
deletion of the budgeted contribution to the grant equalisation reserve in 2003/04	4257
	-------7000 -------

(ii) That the total budget requirement for the general expenses of the County Council for the year beginning 1 April 2003 be £1,025,105,000


(iii) That the County Council's basic council tax for the year beginning 1 April 2003 be £829.80


(iv) That the County Council's council tax for the year beginning 1 April 2003 for properties in each tax band be:

	£
Band A	553.20
Band B	645.40
Band C	737.60
Band D	829.80
Band E	1,014.20
Band F	1,198.60
Band G	1,383.00
Band H	1,659.60

(v) That precepts be issued totalling £394,206,729.73 on the billing authorities in Hampshire, requiring the payment, in such instalments and on such dates set by them and previously notified to the County Council, in proportion to the tax base of each billing authority's area as determined by them as set out below:

Basingstoke and Deane Borough Council	57,541.90
East Hampshire District Council	45,153.49
Eastleigh Borough Council	41,664.81
Fareham Borough Council	41,076.00
Gosport Borough Council	25,462.70
Hart District Council	35,252.00
Havant Borough Council	41,925.00
New Forest District Council	69,483.70
Rushmoor Borough Council	29,074.34
Test Valley Borough Council	44,019.00
Winchester City Council	44,409.40

(vi) That the capital programme be approved as set out in the attached draft capital programme of the accompanying report, as amended to reduce the additional provision for repairs to local roads and footways to £3m, and subject to the conditions set out in Section B.3 of the County Council's Financial Procedures."

The amendments put by Councillors A.P. Collett and W.H. Wheeler were each
put to the vote and were lost.

ORDERED:

(i) That the revenue budget for 2003/04 as set out in the draft budget book in the Minute Book be approved, subject to


· deletion of £545,000 from teachers' salaries

· addition of £300,000 to free school meals

· addition of £245,000 to behaviour intervention services.


(ii) That the total budget requirement for the general expenses of the County Council for the year beginning 1 April 2003 be £1,032,105,000.


(iii) That the County Council's basic council tax for the year beginning 1 April 2003 be £844.56.


(iv) That the County Council's council tax for the year beginning 1 April 2003 for properties in each tax band be:
£
Band A 563.04
Band B 656.88
Band C 750.72
Band D 844.56
Band E 1,032.24
Band F 1,219.92
Band G 1,407.60
Band H 1,689.12


(v) That precepts be issued totalling £401,218,649.87 on the billing authorities in Hampshire, requiring the payment, in such instalments and on such dates set by them and previously notified to the County Council, in proportion to the tax base of each billing authority's area as determined by them and as set out below:-

Basingstoke and Deane Borough Council 57,541.90
East Hampshire District Council 45,153.49
Eastleigh Borough Council 41,664.81
Fareham Borough Council 41,076.00
Gosport Borough Council 25,462.70
Hart District Council 35,252.00
Havant Borough Council 41,925.00
New Forest District Council 69,483.70
Rushmoor Borough Council 29,074.34
Test Valley Borough Council 44,019.00
Winchester City Council 44,409.40


(vi) That an overall borrowing limit of £360m be set for the year ending 31 March 2004.


(vii) That a short-term borrowing limit of £240m be set for the year ending 31 March 2004.


(viii) That the proportion of interest payable at rates which can be varied by the lender or by external factors be set at 10% of the interest payable for the year ending 31 March 2004.


(ix) That the County Treasurer be authorised to carry out borrowing transactions within the limits set out in (vi), (vii) and (viii) above.


(x) That the capital programme for 2003/04 be approved as set out in the draft capital programme in the Minute Book subject to the conditions set out in section B.3 of the County Council's Financial Procedures.


(xi) That the capital programmes for 2004/05 to 2006/07 be approved as set out in the draft capital programme for the purpose of undertaking design work (including the preparation of feasibility and design project appraisals)


(xii) That expenditure on preliminary design and planning work for major transport schemes be permitted when they have achieved a place in the County Council's Local Transport Plan, subject to the cost being met within existing credit approvals.


(xiii) That authority be given to incur expenditure on land purchases as follows:


(a) up to the sum specified in respect of sites still required for the schemes included in the capital programme for the period 2003/04 to 2006/07 provided that the relevant scheme has been the subject of a feasibility or design project appraisal approved by the relevant Executive Member;


(b) up to the amount included in the 2003/04 programme in respect of advance and advantageous land purchases.


(xiv) That the carrying out of feasibility studies for potential "in/out" schemes be approved, the cost to be met from within approved revenue budgets.


(xv) That the Executive Member for Policy and Resources be authorised to approve requests from Executive Members to undertake any design work associated with potential "in/out" schemes, provided that such costs as may fall on the County Council are met from within the relevant Executive Member's capital programme limits.

148 BUILDINGS, LAND AND CONTRACTS PANEL - TERMS OF REFERENCE.

Councillor T.K. Thornber, CBE, Leader of the Council, presented his report recommending terms of reference for the Panel which had been established at the previous meeting.

ORDERED:

That the terms of reference for the Buildings, Land and Contracts Panel be adopted as follows:

To advise the Leader of the Council in relation to:

(a) Buildings maintenance programmes including allocations between different heads of expenditure within the Revenue Budget for building maintenance, improvements to buildings and energy conservation and the overall allocation of resources for these purposes.


(b) Building management and land management policies where the County Council is landlord so as to minimise running costs and ensure effective, efficient and optimal use of the County Council's land and premises.


(c) Project appraisals which are the subject of key decisions by the Leader of the Council, such matters to be considered wherever possible before the key decision is made. Where this is not possible the Leader shall, in order to avoid delay, make the decision subject to the views of this Panel.


(d) Development briefs and strategies for the development of land which are the subject of key decisions by the Executive Member, Policy and Resources, and major acquisitions or disposals as appropriate.


(e) The County Council's policies for the purchase of goods and services, including contract and agency arrangements and the operation of the Council's Central Supplies Organisation, and the relevant business plans and strategies for Property, Business and Regulatory business services and operations.


(f) The operation of Standing Orders and the Code of Practice relating to central purchasing items as therein defined and, in a similar capacity, in relation to those contracts regulated by the Local Government Act 1999 in which a County Council business service organisation is involved.


(g) To consider the Corporate Risk Assessment for the Built Estate and the Health and Safety Performance Plan.


(h) To consider the development of landlord services to schools.


(i) To consider procurement initiatives and supply chain arrangements for building construction projects

149 SPRINKLER SYSTEMS.

Councillor T.K. Thornber, CBE, Leader of the Council, presented his report recommending his response to the motion by Councillor K.G. Chapman referred to him by the Council at its meeting in September 2002 and since also considered by the Buildings, Land and Contracts Panel.

ORDERED:

That the policy of installing sprinkler systems in new stand-alone County Council buildings be endorsed and that the decision be considered on approval of design project appraisals in each case; that suitable opportunities be taken to consider sprinkler systems in buildings being refurbished where appropriate; that provision be made within development briefs for sprinkler systems to be included where County Council land is released for residential development; and that District Councils and other public authorities be encouraged to promote the provision of sprinkler systems in their building developments.

150 CORPORATE GOVERNANCE.

Councillor P.A. Pierce, Chairman of the Standards Committee, presented his report and the recommendation of the Standards Committee for a change to the Committee's terms of reference to reflect corporate governance requirements.

ORDERED:

That the terms of reference of the Standards Committee be amended to include the following:

· The adoption, review and amendment of the corporate governance framework for the County Council.


· To receive and consider reports from the County Treasurer on internal audit strategy, planning and delivery.

151 MEMBERS' ALLOWANCES.

Councillor P.A. Pierce, Chairman of the Standards Committee, presented his report and the recommendation of the Standards Committee concerning Members' allowances having taken into account the recommendations of the Independent Remuneration Panel.

An amendment was proposed by Councillor T.K Thornber, CBE, Leader of the Council, seconded by Councillor P.A. Heath to increase the basic allowance by 3.5% from 1 April 2003 and special responsibility allowances by 3% from 1 April 2003 and the latter by a further 3.5% from 1 April 2004. The increase suggested from 1 April 2004 would be considered in due course by the Independent Remuneration Panel when it considered the County Council's scheme for 2004/05. The amendment was approved.

ORDERED:

(i) That Members' basic allowances be increased by 3.5% from 1 April 2003


(ii) That Members' special responsibility allowances be increased by 3% from 1 April 2003


(iii) That the revised scheme of Members' allowances for 2002/03 and scheme of Members' allowances for 2003/04 be approved as set out in Appendix 2 to these minutes.


(iv) That the approach adopted for Special Responsibility Allowances outlined in paragraph 3 of the report be endorsed.


(v) That the approach to travel and subsistence allowances be approved, on the basis that there is no reimbursement of the costs of meals taken away from The Castle, and that travelling expenses payable to Members remain linked to the rates for staff travel allowances, as set out below:

Cars 45.2p per mile
Motorcycles 25p per mile
Bicycles/Electric Bicycles 8p per mile

152 EARLY YEARS DEVELOPMENT AND CHILD CARE IMPLEMENTATION PLAN 2003/04.

Councillor D.G. Allen, Executive Member for Education, presented his report recommending approval of this Plan which formed part of the County Council's policy framework.

ORDERED:

That the Early Years Development and Childcare Implementation Plan 2003/04 be approved.

153 RECONSTITUTION OF THE HAMPSHIRE ADMISSION FORUM.

Councillor D.G. Allen, Executive Member for Education, presented his report concerning arrangements for making appointments to the Forum.

ORDERED:

That delegated authority be given to the Executive Member for Education to make individual appointments to the Hampshire Admission Forum having regard to nominations and recommendations as required by legislation and in accordance with the existing Forum's recommendations concerning term of office.

154 ANNUAL LIBRARY PLAN 2002.

Councillor J. Waddington, Executive Member for Recreation and Heritage, presented his report recommending approval of this Plan which formed part of the County Council's policy framework. He reassured the Council that no reductions in salary or redundancies would occur by way of implementing the Plan. He also took the opportunity to thank the Director of Recreation and Heritage and all the staff involved in developing the way forward for the Library Service.

ORDERED:

That the Annual Library Plan 2002 be approved and submitted to the Department for Culture, Media and Sport.

155 FACILITIES FOR DISABLED PEOPLE - NOTICE OF MOTION.

Councillor W.H. Wheeler, seconded by Councillor Jo Kelly, proposed the following motion, notice of which had been given pursuant to Standing Order 17:

(i) This Council will enable people with any disability to engage actively in its Council related business. This to be in line with the Disability Discrimination Act 1996, and in any case to be implemented by January 2004.

By this dateline this Council will either be fully accessible by use of ramps, lifts, hearing loops etc, or in the case of buildings unable to be converted, meetings will be relocated so that they will be fully accessible for people with disabilities.


(ii) That an Access Sub-Committee of the Buildings, Land and Contracts Panel be formed which would include Councillors and representatives of disabled organisations with the express intention of auditing all our buildings and reporting back to the Buildings, Land and Contracts Panel at regular intervals.



ORDERED:

That the motion be referred to the Buildings, Land and Contracts Panel for report to the Leader of the Council, and that the Leader's invitation to all Members of the Council to attend the meeting of the Panel when it considered the matter be welcomed.

156 HAMPSHIRE POLICE AUTHORITY.

Councillor S.A. Hayes, the nominated spokesperson for the Police Authority, presented the report of the Police Authority. He also answered a question which had been submitted by Councillor A.G. Dowden, pursuant to Standing Order 20(d) concerning the Get Real/Getting it Right Team.

157 HAMPSHIRE FIRE AND RESCUE AUTHORITY.

Councillor M.F. Cartwright, Chairman of the Hampshire Fire and Rescue Authority, presented the report of the Authority. No questions had been submitted pursuant to Standing Order 20(e) concerning the discharge of the Authority's functions.

158 MATTERS FOR INFORMATION OR WITHIN DELEGATED POWERS.

Part II of the reports of the following comprising matters for information or dealt with within delegated powers were presented, received and adopted:

The Cabinet/Leader

On paragraph 207 (School Reorganisations, Policy and Practice) the Leader urged Members to take up local issues with the County Education Officer.

Executive Member for Education

On paragraph 211 (Advanced Schools) the Executive Member reported that the Department for Education and Skills programme had since been abandoned.

Executive Member for Environment

Executive Member for Recreation and Heritage

Executive Member for Social Care

On paragraph 219 (Intermediate Care - Older Persons Homes) the Executive Member undertook to reply to Councillor Mrs P.G.E. Holden-Brown in relation to a question concerning minimum standards.

Health Review Committee
Standards Committee

The meeting closed at 5.45 p.m.

5aM53203

Appendix 1

Hampshire County Council - 20 February 2003

Proportionality table w.e.f. 1 April 2003

	CON	LD	LAB
Policy Review Committees
Policy and Resources	15	7	2
Education	17	6	3
Environment	11	5	2
Recreation and Heritage	11	5	2
Social Care	11	5	2
Health Review	11	5	2
Advisory Committees/Panels
Buildings, Land and Contracts Panel	5	2	1
Structure Plan Joint Advisory Panel	3	1	1
South West Hampshire Transportation Panel	3	1	1
South East Hampshire Transport Strategy Panel	3	1	1
New Forest Transportation Strategy Panel	3	2	0
Andover and Western Hampshire Transportation Strategy Panel	3	2	0
Winchester Movement and Access Plan Panel	3	2	0
North East Hampshire Transportation Strategy Panel	3	1	1
Basingstoke Environmental Strategy for Transport Panel	3	1	1
Central Hampshire Rural Transportation Strategy Panel	3	2	0
South Hampshire Rapid Transit Procurement Panel	3	1	1
Light Rapid Transit Development Panel	3	1	1
River Hamble Management Sub-Committee	7	4	0
Youth Panel	5	2	1
Schools Monitoring Panel	7	3	1
Special Educational Needs Panel	5	2	1
Other Committees and Panels
Regulatory Committee	18	7	2
Employment in Hampshire County Council Committee	4	2	1
SACRE	2	1	1
Pension Fund Panel	6	2	1
Totals (270)	168	73	29
Mathematical totals (270)	168	73	29

Appendix 2

Hampshire County Council - 20 February 2003

Members' Allowances Scheme

Figures in brackets denote where the current office holder already qualifies for a higher allowance.