MEMBERS' ALLOWANCES

1. At its meeting in February the Council agreed the scheme of Members' Allowances with effect from 1 April 2003, in the light of recommendations from the Independent Remuneration Panel. Government Regulations relating to Councillors' allowances have changed and it was therefore necessary for the Committee to review the level of Members' allowances - both basic allowances and special responsibility allowances - again to take effect from 1 October 2003. They did so in the light of advice and recommendations from the Independent Remuneration Panel.

2. The main changes introduced this time are special responsibility allowances for the political spokesmen on the Health Review Committee, the amounts payable to be the same as those for the political spokesmen on Policy Review Committees; a childcare and dependants' carers allowance in appropriate cases; and the introduction of pensions for Councillors under the age of 70.

3. In the case of independent members on committees, in practice the Education Policy Review Committee and the Standards Committee, the recommendation is that each appointed, co-opted or independent Member should be entitled to an allowance of £600 to reflect the workload occasioned by the usual pattern of about six meetings a year. However, in the case of the Independent Remuneration Panel, neither the Panel itself nor the Standards Committee reached any conclusions as to whether an allowance was appropriate. If the Council is minded to make an allowance to the three independent members of the Remuneration Panel as well, then they may wish to consider a figure in the region of £100 - £200 each, based on a maximum of two meetings a year.

4. There were two specific areas where the Standards Committee went beyond the recommendations of the Independent Remuneration Panel. The first was that there should be a special responsibility allowance for the E-Champion in view of the growing workload in this area; they considered the amount should be £2,580 (comparable with Vice-Chairmen of Policy Review Committees). The second was that the Committee considered there was a disparity between the responsibilities held and allowances paid for the Chairman and Vice-Chairman of the Regulatory Committee, when compared with Chairmen and Vice-Chairmen of Policy Review Committees. They concluded that the allowances for Regulatory Committee should be increased to £7,500 and £1,875 respectively. In all other respects, the recommendations set out below accord with those put forward by the Independent Remuneration Panel. The scheme of Members' Allowances, as recommended for approval is set out in the Appendix to this report.

5. The expected additional cost of these changes is as follows:

2003/04 2004/05
£ £
Independent Remuneration Panel 124,400 140,600
Recommendations

Additional recommendations 2,900 5,800
from Standards Committee
____________________________
Total 127,300 146,400
____________________________

The exact cost will depend on the take up of the pension scheme. The above estimates assume all eligible members join the scheme. Budget provision will need to be made.

6. Copies of the relevant reports and the Minutes of the Independent Remuneration Panel, have been placed in the Members' Room.

RECOMMENDATION:

(i) Basic Allowance

That the basic allowance of £10,670 per annum, as recently agreed by the County Council, should continue; and that the Scheme of Allowances should provide that this should be automatically increased annually in line with Hampshire Management Grade pay increases, starting from 1 April, 2004.

(ii) Special Responsibility Allowances

That the special responsibility allowances (as shown in the appendix to these Minutes) recently agreed by the County Council and amplified pursuant to (iii) and (v) below, should continue and that these should increase in line with Hampshire Management Grade pay increases from 1 April 2004.

(iii) Regulatory Committee Chairman and Vice-Chairman

That, to reflect the responsibilities of the Chairman and Vice-Chairman of the Regulatory Committee when compared with the Chairmen and Vice-Chairmen of Policy Review Committees, the special responsibility allowances should be increased to £7,500 and £1,875 respectively for the Chairman and Vice-Chairmen of the Regulatory Committee (Note - the Independent Remuneration Panel had recommended £5,150 and £1,290 for these two roles respectively).

(iv) Health Review Committee - Political Spokesmen

That the same allowances be paid for the political spokesmen on the Health Review Committee as are paid to the political spokesmen on the Policy Review Committees (£5,150 for Liberal Democrats, £2,580 for Labour), such allowances to be backdated to 1 May 2003.

(v) E-Champion

That a special responsibility allowance of £2,580 per annum be paid to the E-Champion, to reflect the growing workload of that role, such allowance to be paid with effect from 1 October 2003, notwithstanding the fact that the Independent Remuneration Panel had recommended that such a special responsibility allowance was not appropriate.

(vi) Full Review

That a full review of all allowances, including special responsibility allowances, be carried out by the Panel in 2005.

(vii) Suspension of allowances

That when a Member of the Council is suspended from all duties, all allowances, including travel, dependants' carers' and childcare allowances, should be withheld for the period of suspension. Where a Member was partially suspended, any special responsibility allowance relating to any duties from which the Member was wholly suspended should be withheld for that period. For other cases of partial suspension, it is expected that such Members would agree to a voluntary suspension of their allowances as appropriate.

(viii) Dependants' Carers' Allowances

That childcare and dependants' carers' allowances be made at the rate paid by Hampshire Social Services and that the maximum payable per annum per Member would be £1,000 (Hampshire Social Services allowances £7.00 per hour for dependants' carers' and £7.62 for 2.5 hours for childcare).

(ix) Travelling and subsistence allowance

That all travel allowances, including those for Co-opted Members, Independent Members and Independent Appeal Panel Members, should be at the same rate as the staff travel allowances and that no subsistence allowances should be paid in future.

(x) Co-opted Members - Independent Members on Standards Committee

That an allowance of £600 per annum be paid.

(xi) Co-opted Members of Education Policy Review Committee

That an allowance of £600 per annum be paid.

(xii) Independent Appeal Panel Members

That loss of earnings rates be increased pro-rata in accordance with the cost of living index for the past 3 years and then increased annually in line with Hampshire Management Grade increases or equivalent, in the case of loss of earnings incurred by Independent Appeal Panel Members.

(xiii) Annual Adjustment

That the scheme of allowances should provide for automatic annual adjustments to allowances by reference to the settlement for Hampshire Management Grade increases or equivalent.

(xiv) Retrospectivity

That only the special responsibility allowance for political spokesmen on the Health Review Committee be backdated to 1 May 2003; no other allowances to be backdated.

(xv) Recovery of allowances paid

That the Scheme of Allowances should provide that any allowance that has been paid to a Member whilst on suspension or any allowance after a Member had ceased to be a Member of the Authority should be recovered.

(xvi) Duplication

That the Scheme of Allowances should provide that, where a Member is a Member of two or more authorities, they should not receive more than one allowance for the same duties.

(xvii) Pensions

That both basic and special responsibility allowances should be pensionable for all Members under the age of 70.

(xviii) Elections to forego allowances

That the Scheme of Allowances should provide that all Members should be enabled, by notice to the Chief Executive, to forego entitlement of all or part of any allowances paid to them.

(xix) Claims and Payments

That the Scheme of Allowances should provide that travelling, dependants' carers' and childcare allowances for all Members, Co-opted Members, Independent Members and Independent Appeal Panel Members must be claimed within six months of the date of the meeting concerned.

(xx) Independent Remuneration Panel Members

That the Council determine whether an allowance should be payable to the three independent members of the Remuneration Panel, on the basis set out in paragraph 3 above.

P.A. Pierce

Chairman

Appendix

HAMPSHIRE COUNTY COUNCIL

MEMBERS ALLOWANCES SCHEME 2003/04

£

per annum

(i) Basic Allowance 10,670

(ii) Special Responsibility Allowances

Only one special responsibility allowance is payable to any member under the scheme. The allowances in brackets will not be paid whilst the current postholder receives a higher special responsibility allowance in respect of another post or if the postholder, in the case of the Hampshire Fire and Rescue Authority, is not a County Councillor.
£
per annum

The Executive:


Leader 25,750

Deputy Leader 15,450

Education member 15,450

Environment member 15,450

Recreation and Heritage member 15,450

Social Care member 15,450

Spatial Strategy Member 15,450
Economic Development member (15,450)

Community Development and Regeneration member 15,450

Personnel and Training member 15,450

Chief Whip 15,450

Non-portfolio member (currently none) (10,300)

Leaders of Political Groups:
Leader of Liberal Democrat Group 10,820
Leader of Labour Group 7,420

Chairmen of Policy Review Committees:
Policy and Resources 10,300

Education 10,300

Environment 10,300

Recreation and Heritage 10,300

Social Care 10,300

Health Review 10,300

Vice-Chairmen of Policy Review Committees:
Policy and Resources (2,580)

Education (2,580)

Environment 2,580

Recreation and Heritage 2,580

Social Care 2,580

Health Review 2,580

E. Champion 2,580

Minority Parties' Spokesmen:

Liberal Democrats:
Policy and Resources (5,150)
Education 5,150
Environment 5,150

Recreation and Heritage 5,150
Social Care 5,150
Health Review 5,150

Labour:
Policy and Resources (2,580)
Education 2,580
Environment 2,580
Recreation and Heritage 2,580
Social Care 2,580
Health Review 2,580

Regulatory Committee:
Chairman 7,500

Vice-Chairman (1,875)

Standards Committee:

Chairman 5,150

Vice-Chairman 1,290

Hampshire Fire and Rescue Authority:
(These allowances are only payable if the office holder
is a County Councillor)
Chairman 10,300

Minority Parties' Spokesmen:

Liberal Democrat Group 5,150
Labour Group 2,580

Independent Members on Standards Committee 600
Co-opted Members on Education Policy Review Committee 600

NOTE: allowances shown in bold are those which differ from those recommended by the Independent Remuneration Panel

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