Independent Remuneration Panel for Wales: annual report 2022 to 2023

The COVID-19 pandemic continues to impact on the work of the Panel in that we have been unable to meet with authorities and their representative organisations face to face. However, we have continued to hold meetings regularly and to have meaningful discussions with our stakeholders via Microsoft Teams or Zoom.

The Panel issued the draft Report for consultation at the end of September 2021 and held engagement meetings to support the consultation process. We received a range of views, many either supporting or making no comment about the proposed increases. Some respondents questioned the timing and the potential financial implications. The Panel examined all of the responses and has decided not to make any significant amendments to the determinations contained in the draft Report. More detail is included in the executive summary and main Report.

We are grateful to those organisations and individuals who took the time to express their views.

We consider that it is important that the payments to elected members of principal councils are fair and at a level that is not a disincentive to potential candidates for election. Therefore, the Panel has decided to reset the basic salaries of elected members to closer align with the average earnings in Wales. This alignment has been eroded in successive years, primarily as a result of austerity measures.

This will be my final Report as a member of the Independent Remuneration Panel as I will be standing down at the end of March. I have had the privilege of being a member of the Panel since it was established in 2008 and the Chair for the past 7 years. I wish to put on record my appreciation and thanks to all of my colleagues, past and present, for the support that I have received during the last 13 years. Also, my grateful thanks to the members of our Secretariat who have supported me and ensured the efficient functioning of the Panel.

I believe that the Panel has made a significant and beneficial influence on the value of elected members of local government in Wales at all levels and in respect of all the all authorities that are within its remit. It is a sad reflection that much of the public’s perceptions and views of politicians is tainted by the actions of a few individuals within representative democracy. I have had an involvement with local government all my working life and during that time have met and known countless members. The vast majority work tirelessly for their communities and do so for little financial reward. I believe that all in society should have the opportunity to stand for election if they wish to and there should be no financial barriers to preclude this.

This Report provides a major step forward towards achieving this objective. The Panel has consistently emphasised the fact that democracy is not cost free. However, we have to balance the fairness to elected members against the cost to the public purse. We are satisfied that this balance is achieved for 2022 to 2023.

I have no doubt that the Panel has had a beneficial impact on improving the worth of a local councillor and it is vital that this is not undermined by those members who decline increases in the payments for reasons of political gain. Such action undermines the worth and value of all elected members.

Finally, my thanks to all the members and officers of Welsh councils, NPAs and FRAs that I have had the pleasure of meeting and engaging with over the last 13 years.

John Bader

Chair

Panel Membership

• John Bader, Chair
• Saz Willey, Vice Chair
• Joe Stockley
• Ruth Glazzard
• Helen Wilkinson

Detailed information about the members can be found on the Panel website.

The Local Government (Wales) Measure 2011 requires the Panel’s annual report to take effect from 1 April. In most years, this is in line with financial and administrative arrangements of all authorities. However, when new councils are elected some of the Panel’s determinations are to be effective for the new municipal term.

On 9 May 2022, new municipal arrangements will come into effect following local government elections. This annual report therefore has two different effective dates as set out below:

• For the period 1 April 2022 to 8 May 2022, all of the Determinations contained in the Independent Remuneration Panel for Wales’ Annual Report 2021 to 2022 will continue to apply in respect of principal councils and community and town councils.
• For national park authorities and Welsh fire and rescue authorities the determinations will apply from the new financial year, 1 April 2022.
• With effect from 9 May 2022, (the new municipal year) the determinations set out in this report in the sections on principal councils and community and town councils will apply.

This is the 14^th Annual Report of the Independent Remuneration Panel for Wales (the Panel), published under the requirements of the Local Government (Wales) Measure 2011 (as amended).

As Wales emerges from the COVID-19 pandemic, elected members of local councils are playing an important role in supporting the resilience of their communities and economies. Local elections in Wales will take place on 5 May 2022. These elections provide an important opportunity to highlight public services and to emphasise the importance of councillors in maintaining Welsh democracy.

From inception, the Panel has consistently argued that local democracy and the governance of local public services are not cost free and that financial barriers should not limit anyone’s opportunity to participate. Remuneration must be sufficient to encourage and enable a diversity of willing and able people to undertake local governance through elected, appointed or co-opted roles.

The Panel shares Welsh Government’s commitment to equality, diversity and inclusion, including the socio-economic duty. The current make-up of Welsh councillors does not reflect the diversity of Wales. Public services should be accountable to and delivered by people who reflect the communities they serve, as evidence shows diversity of experience and thought broadens perspectives and improves decision making.

The Panel has previously highlighted that since 2009, remuneration of elected members of local government in Wales has not kept pace with measures of inflation or other possible comparators due mainly to austerity and pressure on public finances (These include Retail Prices Index, Consumer Prices Index, NJC (public sector employees), National Living Wage (NLW), the Living Wage Foundation’s Living Wage (LWF) rates, Members of Senedd Cymru, and MPs and also the Annual Survey of Hourly Earnings (ASHE)). The effect is members of principal councils have been significantly undervalued over time.

* ASHE for 2020 has been revised and the 2021 figure is provisional.

The Panel believe the May elections are the right time to re-establish the link between principal councillor remuneration and average earnings in Wales. Those elected as members of the 22 principal councils will receive, proportionately, the same overall average pay that a Welsh constituent received in 2020. Further details can be found in Payments to Elected Members of Principal Councils.

The Local Government (Wales) Measure 2011 requires the Panel to have regard to the financial implication of its decisions. The Panel investigated the cost of the reset and discussed issues of affordability with representatives of the Welsh Local Government Association. Their general consensus was, that in the context of a council’s total budget, the Panel’s determinations will not have a significant impact. The Panel consider that these proposals meet the legislative requirement and achieve an appropriate balance of fairness to councillors and taxpayers.

In preparing this Annual Report, the Panel undertook an extensive consultation on the contents of the Draft Report. The breadth, depth and frankness of the feedback is appreciated and all views have been considered. The Panel hopes that this final report is easier to understand and implement.

All responses to the draft consultation supported the Panel’s stance on continuing to encourage diversity amongst locally elected representatives. Many comments highlighted that low levels of remuneration had proved a barrier to increasing diversity in local democracy. Some raised concerns. One respondent wrote powerfully about the adverse impact on women, and other protected characteristic groups under-represented in local democracy, and of a culture in which people felt coerced into forfeiting payments they are eligible for. The value of the role of councillors is undermined if individual members forego increases determined by an independent Panel.

All respondents agreed that councillors should be properly valued and that remuneration needs to reflect the demands and complexity of the role. Most confirmed that decision-making and local governance continue to become more complex and that pressures on councillors that were already increasing before the pandemic have intensified in the last two years. This includes being available at all times of the day and night as the public (and media) increasingly expect and demand agile, often immediate responses to enquiries and concerns. It is clear from responses that a move to hybrid working enforced by the COVID-19 pandemic requires investment in infrastructure, equipment and training support to enable councillors to fulfil their tasks effectively.

The environment in which politicians – local and national – are operating in is challenging. Safety emerged as a key issue in 2021 following the tragic death of Sir David Amess MP and in the consultation feedback received.

Many individuals and some principal authorities supported all of the Panel’s determinations. There were no objections to the principle of aligning members of principal councils with the average Welsh wage. A few thought the proposed increases should have been larger and or have been made earlier. One respondent thought past increases should have been in line with inflation but did not specify which index measure they preferred. The Panel notes that if this had been done the 2022 payments would have been larger.

A few respondents stated that they would prefer the increase to be spread over the next five year term. The Panel does not agree. The Panel believes that it is essential prospective candidates and the electorate know that successful candidates will be fairly remunerated, as this may lead to a greater diversity of individuals applying and putting themselves forward for selection and election.

A few respondents expressing concern about the level of the proposed increase stated this was because of potential adverse media reaction and public perception about such a large percentage rise. The Panel notes these concerns but is not convinced that any of the matters raised merit a change in either the proposed amounts or that there is a case for incremental increases. The Panel is clear that the 2022 local elections are the right time to re-establish the link between principal councillor remuneration and average earnings in Wales. This was due mainly to austerity and pressure on public finances.

The Panel is concerned that payment information provided by relevant authorities shows that very few members are utilising the provision in the framework for financial support in respect of care. It is vital that Democratic Services Committees continue to encourage and facilitate greater use of this element of the Remuneration Framework so that members with care costs are not financially disadvantaged. Encouraging take up of financial support for members with caring responsibilities sends a positive signal that members with care responsibilities are welcome and valued.  People’s lifestyles (and expectations) have changed in the last decade with increased requirements and expectations for a flexible approach to support people with family and care pressures to participate and contribute at work and in public life, through job sharing, flexibility and family leave. The care payments reflect this.

Payments for members of national park authorities and Welsh fire and rescue authorities will increase as a result of the uplift proposed for elected members of principal councils. As indicated above, these increases will be effective from 1 April 2022, the new financial year. The Panel considered the alternative for implementation following the annual meeting of each authority, but this could mean a significant delay in individuals receiving the new payments.

Early in 2021 the Panel commenced a major review of the Remuneration Framework in respect of community and town councils and undertook a comprehensive consultation exercise with the sector. We appreciated the level of engagement from individual councils and their representative organisations. The COVID-19 pandemic limited the Panel’s opportunities for face-to-face engagement in 2020 to 2021. However, the Panel’s digital engagement was considerable.

The Panel recognises a wide variation in geography, scope and scale across the over 700 community and town councils in Wales, from small community councils with relatively minimal expenditure and few meetings to large town councils with significant assets and responsibilities. Our determinations for the new framework are set out in Payments to Members of Community and Town Councils.

The independence of the Panel from Welsh Government and local government is enshrined in law. The Panel’s decisions and determinations are made on its principles, objectives and evidence, free from political influence, voter or media considerations. In reaching the conclusions within this report, the Panel took account of:

• the overarching framework of the Wellbeing of Future Generations Act
• the ethos and principle of the socio-economic duty, implemented in Wales in 2020
• the Welsh Government’s ongoing commitment to equality and diversity in democracy including the Access to Elected Office Fund and other stakeholder initiatives such as Be a Councillor (WLGA) and ElectHer
• the Welsh Government’s net zero all-Wales plan, remote working policy and indications that hybrid working will remain a feature of the operating environment for local politicians.

2022 to 2023 Determinations

Annex 5 summarises the new and updated determinations in this year’s Annual Report informed by our belief and rationale for investing in local democracy and public services and by the principles outlined above.

Annex 1 outlines all of the Panel’s determinations for 2022 to 2023.

Summary of new and updated determinations contained in this report

Principal Councils

• Determination 1: The basic salary in 2022 to 23 for elected members of principal councils shall be £16,800.
• Determination 2: Senior salary levels in 2022 to 23 for members of principal councils shall be as set out in Table 4.
• Determination 3: Where paid, a civic head must be paid a Band 3 salary of £25,593 in accordance with Table 4.
• Determination 4: Where paid, a deputy civic head must be paid a Band 5 salary of £20,540 in accordance with Table 4.
• Determination 5: Where appointed and if remunerated, a presiding member must be paid £25,593 in accordance with Table 4.

Assistants to the Executive

• Determination 13: The Panel will decide on a case-by-case basis the appropriate senior salary, if any, for assistants to the executive.

National Park Authorities

• Determination 23: The basic salary for NPA ordinary members shall be £4,738 with effect from 1 April 2022.
• Determination 24: The senior salary of the chair of a NPA shall be £13,531 with effect from 1 April 2022.
• Determination 25: A NPA senior salary of £8,478 must be paid to a deputy chair where appointed.
• Determination 26: Committee chairs or other senior posts can be paid. This shall be paid at £8,478.

Fire and Rescue Authorities

• Determination 30: The basic salary for FRA ordinary members shall be £2,369 with effect from 1 April 2022.
• Determination 31: The senior salary of the chair of a FRA shall be £11,162 with effect from 1 April 2022.
• Determination 32: A FRA senior salary of £6,109 must be paid to the deputy chair where appointed.
• Determination 33: Chairs of committees or other senior posts can be paid. This shall be paid at £6,109.

Payments to Co-opted Members of Principal Councils, National Park Authorities and Fire & Rescue Authorities

• Determination 40: The appropriate officer within the authority must set in advance whether a meeting is programmed for a full or half day. When the meeting is set for a full day the fee will be paid on this basis even if the meeting finishes within four hours.

Contribution towards Costs of Care and Personal Assistance (CPA)

• Determination 43: All relevant authorities must provide a payment towards necessary costs for the care of dependent children and adults (provided by informal or formal carers) and for personal assistance needs as follows:
  • Formal (registered with Care Inspectorate Wales) care costs to be paid as evidenced.
  • Informal (unregistered) care costs to be paid up to a maximum rate equivalent to the Real Living Wage hourly rates as defined by the Living Wage Foundation at the time the costs are incurred. This must be for the additional costs incurred by members to enable them to carry out official business or approved duties. Each authority must ensure that any payments made are appropriately linked to official business or approved duty. Payment shall only be made on production of receipts from the care provider.

Community and Town Councils

• Determination 44: Community and town councils must make available a payment to each of their members of £150 per year as a contribution to costs and expenses.
• Determination 45: The payment for members undertaking a senior role is an annual amount of £500 as set out in Table 11.
• Determination 48: Community and town councils can pay financial loss compensation to each of their members, where such loss has occurred, for attending approved duties as follows:
  • Up to £57.20 for each period not exceeding 4 hours
  • Up to £114.40 for each period exceeding 4 hours but not exceeding 24 hours
• Determination 49: Each council can decide to introduce an attendance allowance for members. The amount of each payment must not exceed £30. A member in receipt of financial loss will not be entitled to claim attendance allowance for the same event.
• Determination 52: The application of the Remuneration Framework by relevant Group.

Upholding trust and confidence

Citizens rightly expect that all those who choose to serve in local authorities uphold the public trust by embracing the values and ethics implicit in such public service. These principles underpin the contribution that the work of the Panel and its Framework make towards upholding public trust and confidence.

Simplicity

The Framework is clear and understandable. This is essential for the Panel to be able to communicate its Determinations effectively to all those who are affected by, or who have an interest in its work.

Remuneration

The Framework provides for payment to members of authorities who carry a responsibility for serving their communities. The level of payment should not act as a barrier to taking up or continuing in post. There should be no requirement that resources necessary to enable the discharge of duties are funded from the payment. The Framework provides additional payments for those who are given greater levels of responsibility.

Diversity

Democracy is strengthened when the membership of authorities adequately reflects the demographic and cultural make-up of the communities such authorities serve. The Panel will always take in to account the contribution its Framework can make in encouraging the participation of those who are significantly under-represented at local authority level.

Accountability

Taxpayers and citizens have the right to receive value for money from public funds committed to the remuneration of those who are elected, appointed or co-opted to serve in the public interest. The Panel expects all authorities to make information readily and appropriately available about the activities and remuneration of their members.

Fairness

The Framework will be capable of being applied consistently to members of all authorities within the Panel’s remit as a means of ensuring that levels of remuneration are fair, affordable and generally acceptable.

Quality

The Panel recognises that the complex mix of governance, scrutiny and regulatory duties incumbent upon members requires them to engage with a process of continuous quality improvement. The Panel expects members to undertake such training and personal development opportunities as required to properly discharge the duties for which they are remunerated.

Transparency

Transparency of members’ remuneration is in the public interest. Some members receive additional levels of remuneration by virtue of being elected or appointed to more than one public body. The Framework serves to ensure that knowledge of all members’ remuneration is made easily available to the public.

Remuneration of heads of paid service

The Panel applies these principles of fairness, accountability and transparency in all its determinations in relation to remuneration of members of all the authorities that fall within its remit. The same principles also apply when the Panel is required to make recommendations in relation to the remuneration of the heads of paid service of these authorities.

Basic salary for elected members of principal councils

In 2009 the Panel decided the average work commitment of an elected councillor of a principal council was three working days. The maximum basic salary was set at £13,868. This reflected three fifths of the then median gross earnings of full-time male employees resident in Wales as reported in the Annual Survey of Hourly Earnings (ASHE) published by the Office of National Statistics. The Panel considered it was appropriate to use this figure, as it was comparable with constituents’ pay, adjusted for the part-time nature of the work of a member with no senior responsibilities. At the introduction of austerity measures, the basic salary was reduced to £13,175 and the link to ASHE was broken. Since then, there has been no connection between councillor and constituent pay. In 2019, the Panel took steps to stop the gap widening and reviewed options to move towards reinstating the link with ASHE or another suitable benchmark. A detailed explanatory paper setting out the historical context and analysis is available on the Panel’s website. The key issues are:

Since 2009, the Panel has met its duty to take account of affordability and acceptability and set amounts for the basic salary that varied but have not kept pace with measures of inflation or other comparators. Table 1 shows the percentage increases to the basic salary and a selection of alternative benchmarks from 2013 to 2021.

From 2013 to 2020 the basic salary of other Welsh elected members increased by 9% (£13,175 to £14,368). A Senedd Cymru member’s salary increased by 28.6% (£53,852 to £69,272) and an MP’s salary increased by 23.4% (£66,396 to £81,932). MS salaries were realigned in 2017 and MPs in 2015.

Examining other parts of the United Kingdom, councillors in Scotland receive £18,604 a year and in 2018 councillors in Northern Ireland received £15,486. Comparison with England is more difficult as the structure of local government is different, although there are examples where members are paid significantly more than their Welsh counterparts.

Table 1 shows the basic salary of backbench councillors has fallen significantly behind the Welsh average (median) salary and public sector pay.

*ASHE for 2020 has been revised and the 2021 figure is provisional

** NJC final employers offer July 2021; *** RPI and CPI**** are for July 2021.

Wales Median Average (median) gross weekly earnings by Welsh local areas and year (£) (gov.wales).  

• MS: Remuneration Board    
• MP: Independent Parliamentary Standards Authority 
• RPI all items: Retail Price Index         
• CPI: Consumer Price Inflation
• NLW: National Living Wage
• LWF: Living Wage Foundation

When making determinations for this Annual Report, the Panel considered the progression of the variety of benchmark figures outlined above for the period from 2013 to 2021 and the increases.

As outlined in the executive summary, the Panel believes that local elections in May 2022 provide an opportune time to rectify the imbalance between the basic salary of councillors and the average salaries of their constituents. The basic salary of councillors of principal councils elected in the May 2022 local elections will be reset to align with the 2020 ASHE. This will be £16,800.

Determination 1

• The Basic Salary in 2022/23 for elected members of principal councils shall be £16,800.

Senior Salaries

Senior salaries are payments to members who are executive, chairs of committees and the leader of the opposition.

Number of Senior Salaries

The limit on the number of senior salaries payable (“the cap”) will remain in place and remains unchanged other than to reflect, where appropriate, the changes in the membership. In 2022 to 2023 the maximum number of senior salaries payable within each council will be as set out in Table 3.

Senior Salary Payments

All senior salaries include the basic salary payment.

The Panel recognises that years of no or low increases has meant the pay of senior salary holders is significantly and increasingly lower than many relevant comparators.

Leaders

It is widely recognised that the role of leader of a principal council is highly complex and carries a large and increasing level of responsibility. Leaders’ pay is at the lower end of sector market comparators.

The Panel has heard arguments that a leader’s pay should be at or above a backbench MS or a Health Board Chair. The Panel has considered these arguments, but has concluded that although the roles have some similarities, there are significant and crucial differences which are not helpful in making comparisons.

The Panel is very concerned that the current payment levels are often financially unattractive and are seen as a barrier to participation. For many willing and well-qualified people, a senior salary might necessitate a significant reduction in earnings. This is not in the spirit of diversity, inclusion, or democracy, or efficient for the effective running of principal councils. To start to address this, the Panel has re-set all senior salary payments for 2022 to 2023. The salary of a leader of the largest (Group A) council will be £63,000. All other payments have been decided in reference to this and are set out in Table 4.

Executive

The Panel continues to take the view that executive members should be considered to be working the equivalent of full time (around 40 hours per week) but flexibly, and not necessarily nine to five. Continued discussions with members and officers in recent years have reinforced this conclusion.

Chairs of Committees

The Panel recognises that there is a significant variance in the responsibilities and functions of chairing different committees. Councils do not have to pay chairs of committees. Each council can decide which, if any, chairs of committees they pay. This allows councils to take account of differing levels of responsibility.

The Panel has considered the role element of the chair’s salary. The move to a single level of chair payment in 2019 reduced the differentials with other senior payments. To reset this, the Panel has decided not to change the role element at the 2021 figure of £8,793 for 2022 to 2023. The basic salary increase will apply.

Determination 2

• Senior salary levels in 2022 to 2023 for members of principal councils shall be as set out in Table 4.

Table 3: Maximum numbers of council membership eligible for payment of a senior salary

Note: The number of councillors set out in Table 3 reflects the changes proposed by the Local Democracy and Boundary Commission for Wales and approved by the Minister for Finance and Local Government. These will be effective from the 9 May 2022. From 1 April 2022 to 8 May 2022 the numbers contained in Table 3 of the Annual Report 2021/2022 will apply.

Table 4: Salaries payable to Basic, Senior, Civic and Presiding Members of Principal Councils:

Group A

• Cardiff
• Rhondda Cynon Taf
• Swansea

Group B

• Bridgend
• Caerphilly
• Carmarthenshire
• Conwy
• Flintshire
• Gwynedd
• Newport
• Neath Port Talbot
• Pembrokeshire
• Powys
• Vale of Glamorgan
• Wrexham

Group C

• Blaenau Gwent
• Ceredigion
• Denbighshire
• Merthyr Tydfil
• Monmouthshire
• Torfaen
• Isle of Anglesey

Largest opposition group means a political group other than a controlling group which has a greater number of members than any other political group in the authority.

Other political group means a political group other than a controlling group or the largest opposition group (if any) which comprises not less than ten per cent of the members of that authority.

Table 4 notes

The Panel considers that leadership and executive roles (Band 1 and 2 salaries respectively) carry the greatest individual accountability. A deputy leader salary is set at 70% of their leader and an executive member at 60% of their leader.

The Panel considered arguments for and against changing council groupings. Options included removing or increasing the number of groups and changing the banding levels. The Panel concluded that ‘size of population’ remains a major factor in influencing levels of responsibility and has retained the three population groups (A, B and C). For information: Group A Population 200,000 and above; Group B Population 100,001 to 199,999; Group C Population up to 100,000.

Salaries for B group councils will be at 90% of Group A salaries. Salaries for C group councils have been set at around 80% of Group A. Although Group C councils have significantly smaller populations and budgets they face similar duties and challenges as Group A and B councils and they do so with fewer resources. The Panel has therefore decided to reduce the Group differentials. In 2022 to 2023 salaries for Group C will be at 85% of Group A salaries. The salaries are set out in Table 4.

Committee chairs will be paid at Band 3. A council can decide which, if any, chairs of committees are remunerated. This allows councils to take account of differing levels of responsibility.

The stipulation that an opposition group leader or any other group leader must represent at least 10% of the council membership before qualifying for a senior salary remains unchanged.

The Panel has determined that a council must make a senior salary available to the leader of the largest opposition group.

The Panel has determined that, if remunerated, a Band 5 senior salary must be paid to leaders of other political groups.

Payments to Civic Heads and Deputies (Civic Salaries)

A council may decide not to pay any civic salary to the posts of civic head and or deputy civic head. If paid, civic heads must be remunerated at Band 3 level and deputy civic heads at Band 5. (Determinations 5, 6, 7 and 8).

The posts of civic head and deputy civic head are not included in the cap (subject to not exceeding 50% of the council membership).

Civic heads are senior posts within councils which are distinct from political or executive leadership. In addition to chairing major meetings the civic head is the authorities’ ‘first citizen’ and ‘ambassador’ representing the council to a wide variety of institutions and organisations. The Panel’s requirement that members should not have to pay for the cost of the support (see Determination 10) needed to carry out their duties applies also in respect of deputy civic heads.

Determination 3

• Where paid, a Civic Head must be paid a Band 3 salary of £25,593 in accordance with Table 4.

Determination 4

• Where paid, a Deputy Civic Head must be paid a Band 5 salary of £20,540 in accordance with Table 4.

In many instances civic heads receive secretarial support and are provided with transport for official duties and can access a separate hospitality budget which is managed and controlled by council officers.

The Panel recognises the wide range of provision made for civic heads in respect of transport, secretarial support, charitable giving and official clothing. Funding decisions in relation to levels of such additional support are not matters of personal remuneration, but of the funding required to carry out the tasks and duties. These matters remain entirely a decision for individual councils. Councils remain free to invest in support at whatever levels they deem appropriate for the levels of civic leadership they have in place.

The Local Government (Democracy) (Wales) Act 2013 allows councils to appoint a presiding member whose role is to chair meetings of the whole council. Where appointed, there would be a consequential reduction in the responsibilities of the respective civic head.

Presiding Members

Councils are reminded that, if a presiding member is appointed, they do not have to be remunerated. If they are remunerated the post will count towards the cap and be paid at a Band 3 senior salary.

Determination 5

• Where appointed and if remunerated, a presiding member must be paid £25,593 in accordance with Table 4.

Determination 6

• The post of deputy presiding member will not be remunerated.

Key factors underpinning the Panel’s determinations

The basic salary, paid to all elected members, is remuneration for the responsibility of community representation and participation in the scrutiny, regulatory and related functions of local governance. It is based on a full time equivalent of three days a week.

The prescribed salary and expenses must be paid in full to each member unless an individual has independently and voluntarily opted in writing to the authority’s proper officer to decline all or any element of the payment. It is fundamental there is transparency in this process so any possible suggestion that members are put under pressure to decline salaries is avoided.

The following must be applied.

Determination 7

• An elected member must not be remunerated for more than one senior post within their authority.
• An elected member must not be paid a senior salary and a civic salary.
• All senior and civic salaries are paid inclusive of basic salary.
• If a council chooses to have more than one remunerated deputy leader, the difference between the senior salary for the deputy leader and other executive members should be divided by the number of deputy leaders and added to the senior salary for other executive members in order to calculate the senior salary payable to each deputy leader.

Determination 8

• Members in receipt of a Band 1 or Band 2 senior salary cannot receive a salary from any NPA or FRA to which they have been appointed. They remain eligible to claim travel and subsistence expenses and contribution towards costs of care and personal assistance from the NPA or FRA.

Determination 9

• Members in receipt of a Band 1 or Band 2 salary cannot receive any payment from a community or town council of which they are a member. They remain eligible to claim travel and subsistence expenses and contribution towards costs of care and personal assistance from the community or town council. Where this situation applies, it is the responsibility of the individual member to comply.

Supporting the work of local authority elected members

The Panel expects support provided should take account of the specific needs of individual members. Democratic Services Committees are required to periodically review the level of support provided to members to carry out their duties. The Panel would expect these committees to carry this out and bring forward proposals to the full council as to what is required. Any proposals should be made with due regard to Determinations 10 and 11 below. For example, the Panel does not consider it appropriate that elected members should be required to pay for any telephone usage to enable them to discharge their council duties.

The Panel considers it is necessary for each elected member to have ready use of email services, and electronic access to appropriate information via an internet connection. The Panel does not consider it appropriate that elected members should be required to pay for internet related services to enable them to discharge their council duties, even more so when a significant proportion of a member’s function is undertaken from their home. Access to electronic communications is essential for a member to be in proper contact with council services and to maintain contact with those they represent. Councils are committed to paperless working and without electronic access members would be significantly limited in their ability to discharge their duties. It is inappropriate for facilities required by members only to be available within council offices within office hours.

The responsibility of each council, through its Democratic Services Committee, to provide support should be based on an assessment of the needs of its members. When members’ additional needs or matters of disability apply, or there are specific training requirements indicated, each authority will need to assess any particular requirements of individual members.

As a result of their role as a councillor an elected member’s personal security may become adversely affected. It is the duty of Democratic Services Committees to fund or provide support necessary to enable a councillor to discharge their role reasonably and safely. This may require funding appropriate security measures to protect councillors from personal risk or significant threat. Risk assessment and liaison with relevant bodies such as the police and security services would normally inform the selection of required provision.

For co-opted members the support requirements are set out in the section on payments to co-opted members of principal councils, national park authorities and fire & rescue authorities and Determination 42.

Determination 10

• Each authority, through its Democratic Services Committee, must ensure that all its elected members are given as much support as is necessary to enable them to fulfil their duties effectively. All elected members should be provided with adequate telephone, email and internet facilities giving electronic access to appropriate information.

Determination 11

• Such support should be without cost to the individual member. Deductions must not be made from members’ salaries by the respective authority as a contribution towards the cost of support which the authority has decided necessary for the effectiveness and or efficiency of members.

Specific or additional senior salaries

To allow greater flexibility councils have the opportunity to apply for specific or additional senior salaries that are outside the current remuneration framework, or cannot be accommodated within the maximum number of senior salaries relating to the authority. If the proposed addition is approved and results in the council exceeding its cap, this will be included in the approval (subject to not exceeding 50% of the council membership – the proportion fixed by the Panel may not exceed fifty percent unless the consent of the Welsh Minister has been obtained). Some councils have raised the possibility of operating some senior salary posts on a job share arrangement. The Panel is supportive of this principle, on the basis that it supports diversity and inclusion, and the process is set out under job sharing arrangements.

Determination 12

• Principal councils can apply for specific or additional senior salaries that do not fall within the current Framework.

Guidance to local authorities on the application process was issued in April 2014 and incorporated the following principles:

1. The total number of senior salaries cannot exceed fifty percent of the membership.
2. Applications will have to be approved by the authority as a whole (unless this has been delegated within Standing Orders) prior to submission to the Panel.
3. There must be clear evidence that the post or posts have additional responsibility demonstrated by a description of the role, function and duration.
4. Each application will have to indicate the timing for a formal review of the role to be considered by the authority as a whole.

Job Sharing Arrangements

Section 58 of the Local Government and Elections Act (Wales) 2021 established new arrangements for job sharing for executive leaders and executive members. The Act makes provision:

1. requiring local authorities to include in their executive arrangements provision for enabling two or more councillors to share an office on an executive, including the office of executive leader
2. changing the maximum number of members of an executive when members of the executive share an office and
3. about voting and quorum where members of an executive share office.

For members of an executive: Each job sharer will be paid an appropriate proportion of the salary group as set out in Table 3.

The statutory maximum, as set out in the Act, for cabinets cannot be exceeded so each job sharer will count toward the maximum.

In respect of job-sharing arrangements for other senior salary posts (e.g. Committee Chairs: Opposition group leaders) the Panel is supportive and will normally be prepared to agree to submissions from councils subject to the limitations set out in the following paragraph.

Under the Measure, it is the number of persons in receipt of a senior salary, not the number of senior salary posts that count towards the cap. Therefore, for all job share arrangements the senior salary cap will be increased subject to the statutory maximum of 50% of the council’s membership. Where the arrangements would mean that the statutory maximum would be exceeded the Panel would need to seek the approval of Welsh Ministers.

Assistants to the Executive

The Local Government and Elections Act also provides for principal councils to be able to appoint elected members to assist the executive in discharging its functions.

Such appointments are made by the leader of the council and can include:

• the number of assistants that may be appointed
• the term of office of the assistants
• the responsibility of the assistants.

There are exclusions to the appointments as set out in the legislation and assistants are not members of the cabinet.

The Panel has given initial consideration to matters of remuneration for members appointed as assistants to the executive but has concluded that until there is more information in respect of the responsibilities attached to the posts it is not possible to decide on additional payments, if any. It is therefore proposed that this will be further considered when a council decides to make appointments and details of the specific responsibility is available.

To give effect to this without the requirement for a further formal report the following determination will apply.

Determination 13

• The Panel will decide on a case-by-case basis the appropriate senior salary, if any, for assistants to the executive.

Note: If a senior salary payment is made, each will count towards the cap, however, the cap will be increased by the number of assistants receiving payments subject the statutory maximum of 50 per cent of the council’s membership.

Little use has been made of the arrangements for Joint Overview and Scrutiny Committees (JOSC). Therefore, the Panel has decided to delete the payment from the Framework. If, in future, a JOSC is formed by an individual council and it wishes to remunerate, it can apply using the arrangements contained under specific or additional senior salaries. The current JOSCs in operation will continue without need for further confirmation. The applicable salaries are set out in the following determinations.

Determination 14

• The salary level for a chair of a Joint Overview and Scrutiny Committee shall be £8,793.

Determination 15

• The salary level for a vice chair of a Joint Overview and Scrutiny Committee shall be £4,396.

The Local Government and Elections Act 2021 established Corporate Joint Committees (CJCs) which comprise groups of principal councils. CJCs have specific functions which are set out in Regulations. Paragraph 4 of The Corporate Joint Committee (General) (No.2) (Wales) is relevant to the Panel.

The Local Government (Wales) Measure 2011 is amended to include CJCs as relevant authorities for the functions of the Panel. Therefore, any payments made to members of a CJC have to be determined by the Panel.

In respect of this Annual Report, as CJCs are in the early stages of being set up, it is too soon for the Panel to consider whether members of a CJC should be remunerated and over time the role, responsibility will be evaluated including any consequential changes to the function and role of the Executive members of the principal council. However, the payment of contribution to costs of care and travel and subsistence to members of CJCs has been included under sections Contribution towards Costs of Care and Personal Assistance and Reimbursement of Travel and Subsistence Costs when on Official Business.

The function of the Panel relating to the salaries of Chief Executives of principal councils and Chief Fire Officers has been extended to include Chief Executives of CJCs.

The Local Government (Wales) Measure 2011 provides a power to the Panel to make determinations on pension entitlement for elected members of principal councils.

Determination 16

• The entitlement to join the Local Government Pension Scheme shall apply to all eligible elected members of principal councils.

This section applies to elected members of principal authorities.

The Regulations relating to Family Absence for elected members of principal councils were approved by the National Assembly for Wales in November 2013 and cover maternity, new-born, adoption and parental absences from official business.

The Panel considered the implications for the remuneration of such members who are given absence under the terms of the Welsh Government Regulations and the Panel’s determinations are set out below.

Determination 17

• An elected member is entitled to retain a basic salary when taking family absence under the original regulations or any amendment to the regulations irrespective of the attendance record immediately preceding the commencement of the family absence.

Determination 18

• When a senior salary holder is eligible for family absence, they will continue to receive the salary for the duration of the absence.

Determination 19

• It is a matter for the authority to decide whether or not to make a substitute appointment. The elected member substituting for a senior salary holder taking family absence will be eligible to be paid a senior salary, if the authority so decides.

Determination 20

• If the paid substitution results in the authority exceeding the maximum number of senior salaries which relates to it, as set out in the Panel's Annual Report, an addition to the maximum will be allowed for the duration of the substitution. However, this will not apply to the Isle of Anglesey or Merthyr Tydfil Councils if it would result in the number of senior salaries exceeding fifty percent of the Council membership. Specific approval of Welsh Ministers is required in such circumstances.

Determination 21

• When a Council agrees a paid substitution for family absence the Panel must be informed within 14 days of the date of the decision, of the details including the particular post and the duration of the substitution.

Determination 22

• The Council’s schedule of remuneration must be amended to reflect the implication of the family absence.

Structure of National Park Authorities

The three national parks in Wales: Brecon Beacons, Pembrokeshire Coast and Snowdonia were formed to protect spectacular landscapes and provide recreation opportunities for the public. The Environment Act 1995 led to the creation of a National Park Authority (NPA) for each park.

National park authorities comprise members who are either elected members nominated by the principal councils within the national park area or are members appointed by the Welsh Government through the Public Appointments process. Welsh Government appointed and council nominated members are treated equally in relation to remuneration.

The structure of the members’ committee at each of the three national parks is set out in Table 5. There are 18 Members within each NPA, made up of 12 Principal council members and 6 appointed Welsh Government members.

Standards Committees of NPAs also have independent co-opted members whose remuneration is included in the Framework as set out in the section on payments to co-opted members of Principal Councils, National Park Authorities and Fire & Rescue Authorities.

The Panel has based its determinations on the following key points:

NPAs manage their work via formal authority meetings, committees and task and finish groups. Each has a Development, Management and or Planning Committee, and other committees include Performance and Resources and Audit and Scrutiny. Ordinary NPA members are members of at least one committee as well as being involved in site visits and inspection panels.

There is an expectation that members will participate in training and development.

The chair of an NPA has a leadership and influencing role in the authority, a representational role similar in some respects to that of a civic head and a high level of accountability. The chair is not only the leader of the authority but is also the public face of the particular national park and is the link with the Minister and MS’ with whom they have regular meetings. The role requires a high level of commitment and time.

Basic and senior salaries

The time commitment on which the remuneration of members is based is 44 days. The salary for members of NPAs will increase to £4,738.

The Panel has determined that the remuneration of a NPA chair should be aligned to that part of a Band 3 senior salary received by a committee chair of a principal council. This salary will increase to £13,531.

The NPA can determine the number of senior posts it requires as appropriate to its governance arrangements.

The Panel has made the following determinations:

Determination 23

• The basic salary for NPA ordinary members shall be £4,738 with effect from 1 April 2022.

Determination 24

• The senior salary of the chair of a NPA shall be £13,531 with effect from 1 April 2022.

Determination 25

• A NPA senior salary of £8,478 must be paid to a deputy chair where appointed.

Determination 26

• Committee chairs or other senior posts can be paid. This shall be paid at £8,478.

Determination 27

• Members must not receive more than one NPA senior salary.

Determination 28

• A NPA senior salary is paid inclusive of the NPA basic salary.

Determination 29

• Members of a principal council in receipt of a Band 1 or Band 2 senior salary cannot receive a salary from any NPA to which they have been appointed. Where this situation applies, it is the responsibility of the individual member to comply.

Note: Family absence does not apply to Welsh Government appointed members and local authority nominees are covered by their principal council so NPAs are not required to make any arrangements in this respect.

Structure of Fire and Rescue Authorities

The three fire and rescue services (FRAs) in Wales: Mid and West Wales, North

Wales and South Wales were formed as part of Local Government re-organisation in 1996.

FRAs comprise elected members who are nominated by the Principal Councils within each fire and rescue service area.

The structure of the each of the three FRAs is set out in Table 6.

In addition, Standards Committees of FRAs have independent co-opted members whose remuneration is included in the Framework as set out in the section on payments to co-opted members of Principal Councils, National Park Authorities and Fire & Rescue Authorities.

In considering remuneration of members of FRAs, the Panel has based its determinations on the following key points:

The Chair has a leadership and influencing role in the authority, and a high level of accountability especially when controversial issues relating to the emergency service arise. In addition to fire authority meetings, all FRAs have committees that include in different combinations: audit, performance management, scrutiny, human resources, resource management as well as task and finish groups and disciplinary panels. As well as attending formal meetings of the authority and committees, members are encouraged to take on a community engagement role, including visiting fire stations.

There is a strong training ethos in FRAs. Members are expected to participate in training and development. Induction programmes are available as well as specialist training for appeals and disciplinary hearings.

Training sessions often follow on from authority meetings to make the training accessible.

Basic and Senior Salaries

The time commitment on which remuneration is based is 22 days. The salary for members of FRAs will increase to £2,369.

The Panel determined that the remuneration of a FRA chair should be aligned to that part of a Band 3 senior salary received by a committee chair of a principal council. This salary will increase to £11,162.

The Panel determined that the remuneration of a FRA deputy chair will be aligned with the Band 5 senior salary for principal councils. This will increase to £6,109 and must be paid if the authority appoints a deputy chair.

The FRA determine the number of senior posts it requires as appropriate to its governance arrangements. Committee chairs and any other senior post if remunerated will be aligned with Band 5. This will increase to £6,109.

Local Pension Boards

The Panel has considered requests from FRAs to allow them to pay salaries to chairs of local pension boards established under the Firefighters’ Pension Scheme (Wales) Regulations 2015. Those Regulations already give FRAs the power to decide how local pension boards are to work and to pay the chair and members if they wish. Therefore, it is not appropriate for the Panel to make a determination empowering FRAs to pay salaries to local pension board chairs. The senior salaries in Determination 31 or 32 cannot be used exclusively for this role.

The Panel has made the following determinations:

Determination 30

• The basic salary for FRA ordinary members shall be £2,369 with effect from 1 April 2022.

Determination 31

• The senior salary of the chair of an FRA shall be £11,162 with effect from 1 April 2022.

Determination 32

• A FRA senior salary of £6,109 must be paid to the deputy chair where appointed.

Determination 33

• Chairs of committees or other senior posts can be paid. This shall be paid at £6,109.

Determination 34

• Members must not receive more than one FRA senior salary.

Determination 35

• A FRA senior salary is paid inclusive of the FRA basic salary and must reflect significant and sustained responsibility.

Determination 36

• Members of a principal council in receipt of a Band 1 or Band 2 senior salary cannot receive a salary from any FRA to which they have been nominated. Where this situation applies, it is the responsibility of the individual member to comply.

This section does not apply to co-opted members to community and town councils.

The Panel has determined that a daily or half daily fee is appropriate remuneration for the important role undertaken by co-opted members of authorities with voting rights. This payment therefore differs from that for elected members of principal councils.

Principal councils, NPAs and FRAs can decide on the maximum number of days in any one year for which co-opted members may be paid. The number of days in any one year may vary to reflect the specific work discharged by each relevant committee.

Recognising the important role that co-opted members discharge, payment must be made for travel and preparation time; committee and other types of meetings as well as other activities, including training, as set out in Determinations 38 to 41.

The determinations are set out below. Principal councils, NPAs and FRAs must tell co-opted members the name of the appropriate officer who will provide them with the information required for their claims; and make the appropriate officer aware of the range of payments that should be made.

Determination 37

• Principal Councils, NPAs and FRAs must pay the following fees to co-opted members who have voting rights (Table 7).

Determination 38

• Reasonable time for pre-meeting preparation is to be included in claims made by co-opted members the extent of which can be determined by the appropriate officer in advance of the meeting.

Determination 39

• Travelling time to and from the place of the meeting is to be included in the claims for payments made by co-opted members (up to the maximum of the daily rate).

Determination 40

• The appropriate officer within the authority must set in advance whether a meeting is programmed for a full or half day. When the meeting is set for a full day, the fee will be paid on this basis even if the meeting finishes within four hours.

Determination 41

• Fees must be paid for meetings and other activities including other committees and working groups (including task and finish groups), pre-meetings with officers, training and attendance at conferences or any other formal meeting to which co-opted members are requested to attend.

Support for co-opted members

Determination 42

• Each authority, through its Democratic Services Committee or other appropriate committee, must ensure that all voting co-opted members are given as much support as is necessary to enable them to fulfil their duties effectively. Such support should be without cost to the individual member.

This section applies to all members of principal councils, NPAs, FRAs and to co-opted members of these authorities. The same provision applies to community and town councils and members of Corporate Joint Committees.

The purpose of this section is to enable people who have personal support needs and or caring responsibilities to carry out their duties effectively as a member of an authority. The Panel believes that additional costs of care required to carry out approved duties should not deter any individual from becoming and remaining a member of an authority or limit their ability to carry out the role. The Panel has adopted specific principles related to support for the costs of care which were the subject of a Supplementary Report published in February 2020. These principles are set out in Table 8.

The Panel reviewed the arrangements for this financial support and has made the following changes:

• As payments are taxable under the current HMRC rules, full reimbursement is not possible so for clarity this is retitled to “contribution towards the costs of care and personal assistance”. It will still require receipts to accompany claims.
• Claims can be made in respect of a dependant under 16 years of age, or a minor or adult who normally lives with the member as part of their family and who cannot be left unsupervised.
• Reimbursement may be claimed for member’s own care or support needs where the support and/or cost of any additional needs are not available or are not met directly by the authority such as Access to Work, Personal Independence Payments, insurance. These could arise when the needs are recent and or temporary.

Members, including co-opted members are entitled to claim towards the costs of care and personal assistance, for activities that the individual council has designated official business or an approved duty which might include appropriate and reasonable preparation and travelling time. It is a matter for individual authorities to determine specific arrangements to implement this. Each authority must ensure that any payments made are appropriately linked to official business or approved duty.

The Panel reviewed the maximum monthly payment in recognition that this has not changed for several years. Information indicates that monthly costs and claims vary considerably. These can depend on the number of dependants, their ages and other factors. Therefore the monthly cap will be replaced with the following arrangements:

• Formal (registered with Care Inspectorate Wales) care costs to be paid as evidenced.
• Informal (unregistered) care costs to be paid up to a maximum rate equivalent to the Real Living Wage hourly rates as defined by the Living Wage Foundation at the time the costs are incurred.

For clarification, care costs cannot be paid to someone who is a part of a member’s household.

The Panel continues to recognise the issues relating to the publication of this legitimate expense and has retained the requirements for publication set out in Annex 4. To support current members and to encourage diversity the Panel urges authorities to promote and encourage greater take-up of the contribution towards costs of care and personal assistance.

Determination 43

• All relevant authorities must provide a payment towards necessary costs for the care of dependent children and adults (provided by informal or formal carers) and for personal assistance needs as follows:
  • Formal (registered with Care Inspectorate Wales) care costs to be paid as evidenced.
  • Informal (unregistered) care costs to be paid up to a maximum rate equivalent to the Real Living Wage hourly rates as defined by the Living Wage Foundation at the time the costs are incurred.

This must be for the additional costs incurred by members to enable them to carry out official business or approved duties. Each authority must ensure that any payments made are appropriately linked to official business or approved duty. Payment shall only be made on production of receipts from the care provider.

The Family Absence Regulations (approved by the National Assembly in 2014) are very specific relating to entitlement and only available for elected members of principal councils. Absence for reasons of ill-health is not included.

Instances have been raised with the Panel of senior salary holders on long term sickness and the perceived unfairness in comparison with the arrangements for family absence. In consequence, councils are faced with the dilemma of:

• operating without the individual member but still paying them the senior salary.
• replacing the member who therefore loses the senior salary (but retains the basic salary).

The Panel’s Framework provides specific arrangements for long term sickness as set out below:

1. Long term sickness is defined as certified absences in excess of 4 weeks.
2. The maximum length of sickness absence within these proposals is 26 weeks or until the individual’s term of office ends, whichever is sooner (but if reappointed any remaining balance of the 26 weeks will be included).
3. Within these parameters a senior salary holder on long term sickness can, if the authority decides, continue to receive remuneration for the post held.
4. It is a decision of the authority whether to make a substitute appointment, but the substitute will be eligible to be paid the senior salary appropriate to the post.
5. If the paid substitution results in the authority exceeding the maximum number of senior salaries payable for that authority, as set out in the Annual Report, an addition will be allowed for the duration of the substitution. (However, this would not apply to Merthyr Tydfil or the Isle of Anglesey councils if it would result in more than 50% of the membership receiving a senior salary. It would also not apply in respect of a council executive member if it would result in the cabinet exceeding 10 posts - the statutory maximum).
6. When an authority agrees a paid substitution, the Panel must be informed within 14 days of the decision of the details including the specific post and the estimated length of the substitution. The authorities’ Schedule of Remuneration must be amended accordingly.
7. It does not apply to elected members of principal councils who are not senior post holders as they continue to receive basic salary for at least six months irrespective of attendance and any extension beyond this timescale is a matter for the authority.

This arrangement applies to members of principal councils, NPAs and FRAs who are senior salary holders, including Welsh Government appointed members, but does not apply to co-opted members.

Note: The Family Absence Regulations apply to elected members in cases of maternity, new-born, adoption and parental absences from official business. They do not apply to Welsh Government appointed members of NPAs.

This section applies to members of principal councils, NPAs, FRAs and to co-opted members of these authorities. This section also applies to members of Corporate Joint Committees. (Similar provision for community and town councils is contained in Payments to Members of Community and Town Councils as there is a different approach to such members, principally that the provision is permissive.)

Members may claim reimbursement for travel and subsistence (meals and accommodation) costs where these have arisen as a result of undertaking official business or approved duties.

Expenses reimbursed to members of principal councils, by their principal council are exempt from Income Tax and employee NICs. Members of NPAs and FRAs may be subject to other arrangements as determined by HMRC.

The Panel is aware that in some instances members with disabilities have been reluctant to claim legitimate travel expenses because of an adverse response following the publication of their travel costs. As an alternative, travel arrangements could be made directly by the authority in such circumstances.

The Panel has determined there will be no change to mileage rates which members are entitled to claim. All authorities may only reimburse travel costs for their members undertaking official business within and or outside the authority’s boundaries at the current HM Revenue and Customs (HMRC) rates which are:

Where a member who is on official business or an approved duty is driven by a third party (not a member or officer of that authority), the member can claim mileage at the prescribed rates plus any parking or toll fees provided the authority is satisfied that the member has incurred these costs.

Reimbursement of other travel costs

All other claims for travel, including travel by taxi if this is the only, or most appropriate, method of transport, must only be reimbursed on production of receipts showing the actual cost and will be subject to any requirement or further limitation that an authority may determine. Members should always be mindful of choosing the most cost-effective method of travel.

These rates are in line with Welsh Government rates. Recommended practice is that overnight accommodation should usually be reserved and paid for on behalf of members by the relevant authority, in which case an authority may set its own reasonable limits and the limits which apply when an individual member claims in arrears for overnight accommodation costs do not then apply.

All authorities must continue to reimburse subsistence expenses for their members up to the maximum rates set out above on the basis of receipted claims except for occasions when members stay with friends and or family

There may be instances where an authority has determined that travel costs within its boundaries are payable and require a journey to be repeated on consecutive days. Where it is reasonable and cost effective to reimburse overnight accommodation costs, instead of repeated daily mileage costs, then it is permissible to do so.

It is not necessary to allocate the maximum daily rate (£28 per day) between different meals as the maximum daily rate reimbursable covers a 24-hour period and can be claimed for any meal if relevant, provided such a claim is accompanied by receipts.

Car Parking for Members

Several councils have specific arrangements for their members in respect of car parking. The Panel considers that it is a matter for individual councils to determine arrangements including payments to and from members providing that it is a decision made formally by the council.

The Panel recognise that there is a wide variation in geography, scope and scale across the large number of community and town councils in Wales, from small community councils with relatively minimal expenditure and few meetings to large town councils with significant assets and responsibilities. This and the fact that not all electoral areas have councils, has made establishing remuneration arrangements more difficult to achieve than for other relevant authorities. For this reason, the Panel decided to undertake a fundamental review ready for implementation effective from the elections on 5 May 2022.

The Panel decided that in carrying out the review it was vital to engage comprehensively with community and town councils and representative organisations together with a commitment to consult on the proposals emanating from the review. The result of this consultation was a significant degree of support for the new proposals and therefore the Panel has decided to introduce the new Framework as set out in this section. However, this will only take effect from the 9 May 2022 following the municipal elections. For the period from 1 April to 8 May the determinations contained in the Annual Report 2021 to 2022 will continue to apply.

In order to act and carry out duties as a member of a community or town council all persons are required to make a formal declaration of acceptance of office. Following this declaration, members of community or town councils are then holders of elected office and occupy a role that is part of the Welsh local government structure. It is important to note that a person who follows this path is in a different position to those in other forms of activity, for example such as volunteering or charitable work, typically governed by the Charity Commission for England and Wales.

Under the Local Government (Wales) Measure 2011, community and town councils are relevant authorities for the purpose of remuneration.

Consequently, individuals who have accepted office as a member of a community or town council are entitled to receive payments as determined by the Independent Remuneration Panel for Wales. It is the duty of the proper officer of a council (usually the Council Clerk) to arrange for correct payments to be made to all individuals entitled to receive them.

Members should receive monies to which they are properly entitled as a matter of course.

An individual may decline to receive part, or all, of the payments if they so wish. This must be done in writing and is an individual matter. A community or town council member wishing to decline payments must themselves write to their proper officer to do so.

The Panel considers that any member who has personal support needs or caring responsibilities should be enabled to fulfil their role. Therefore, the Panel continues to make the contribution towards costs of care and personal allowance mandatory for all members of community and town councils as set out in Determination 43.

Each community and town council must ensure that it does not create a climate which prevents persons accessing any monies to which they are entitled that may support them to participate in local democracy. Payments should be made efficiently and promptly.

Members in receipt of a Band 1 or Band 2 senior salary from a principal council cannot receive any payment from any community or town council, other than travel and subsistence expenses and contribution towards costs of care and personal assistance. However, this does not preclude them from holding a senior role (Leader, Deputy Leader) without payment.

Table 12 sets out the actions that community and town councils must take annually in respect of each determination that follows.

These are based solely on finance. We acknowledge the view of many respondents that this was restrictive and limiting. Therefore 5 Groups will be established based on the size of the council’s electorate.

In addition, there will be a second factor for determining which group the council will be placed. Where income or expenditure permanently exceeds £200,000 a year, it will be moved upwards to the next group.

Payments towards costs and expenses

The Panel continues to mandate a payment of £150, for all councils, as a contribution to costs and expenses for members of community and town councils. We have amended the proposal in the draft to take account of responses to the consultation.

Receipts are not required for these payments.

Determination 44

• Community and town councils must make available a payment to each of their members of £150 per year as a contribution to costs and expenses.

 Taxation

The issue of the taxation of the £150 payment has been raised on many occasions including in response to the recent consultation. As has been made clear the Panel has no remit in respect of matters of taxation but has been kept informed of the discussions between the Welsh Government and HMRC to establish a possible exemption applying to all community and town councils. Although there has been progress, the Panel has decided that any fundamental change requires formal consultation. This will be progressed in Spring 2022.

Senior roles

The Panel recognises that specific member roles especially within the larger community and town councils, for example a committee chair, will involve greater responsibility. It is also likely that larger councils will have a greater number of committees, reflecting its level of activity. The Panel has therefore set out the determinations for senior roles in Table 11 below.

In all cases, a councillor can only have one payment of £500 regardless of how many senior roles they hold within their Council.

Determination 45:

• The payment for members undertaking a senior role is an annual amount of £500 as set out in Table 11.

Where a person is a member of more than one community or town council, they are eligible to receive the £150 and, if appropriate, £500 from each council of which they are a member.

Contribution towards costs of Care and Personal Assistance

The purpose of this is to enable people who have personal support needs and or caring responsibilities to carry out their duties effectively as a member of an authority. The Panel’s determinations on Contribution towards costs of Care and Personal Assistance apply to Community and Town Councils.

Reimbursement of travel costs and subsistence costs

The Panel recognises there can be significant travel and subsistence costs associated with the work of community and town council members, especially where the council area is geographically large and/or when engaging in duties outside this area. Each council has an option to pay travel and subsistence costs including travel by taxi if this is the only, or most appropriate, method of transport. Where a council does opt to pay travel and subsistence costs, the following determinations apply.

Determination 46

• Community and town councils can make payments to each of their members in respect of travel costs for attending approved duties. Such payments must be the actual costs of travel by public transport or the HMRC mileage allowances as below:
  • 45p per mile up to 10,000 miles in the year.
  • 25p per mile over 10,000 miles.
  • 5p per mile per passenger carried on authority business.
  • 24p per mile for private motor cycles.
  • 20p per mile for bicycles.

Where a member who is on official business or an approved duty is driven by a third party (not a member or officer of that authority), the member can claim mileage at the prescribed rates plus any parking or toll fees provided the authority is satisfied that the member has incurred these costs.

Determination 47

• If a community or town Council resolves that a particular duty requires an overnight stay, it can authorise reimbursement of subsistence expenses to its members at the maximum rates set out below on the basis of receipted claims:
  • £28 per 24 hour period allowance for meals, including breakfast where not provided.
  • £200: London overnight.
  • £95: elsewhere overnight.
  • £30: staying with friends and/or family overnight.

Compensation for financial loss

The Panel has retained the facility which councils may pay as compensation to their members where they incur financial loss when attending approved duties. Members must be able to demonstrate that the financial loss has been incurred. Each council has an option to pay compensation for financial loss and where it does the following determination applies.

Determination 48

• Community and town councils can pay financial loss compensation to each of their members, where such loss has occurred, for attending approved duties as follows:
  • Up to £57.20 for each period not exceeding 4 hour
  • Up to £114.40 for each period exceeding 4 hours but not exceeding 24 hours.

Attendance Allowance

Attendance allowance was raised in the consultation. The Panel acknowledges that in some cases this might be a valuable addition to support the work of a council. It is therefore included as an option for all councils. A number of queries were raised in respect of this proposal in responses to the Draft Report, including some opposition to its introduction.

Whilst it is included in the framework, it is optional for councils and therefore those councils that do not consider it appropriate do not have to implement it. Councils can decide and set out the provisions of the scheme, the paragraphs below details what should be included.

Determination 49

• Each council can decide to introduce an attendance allowance for members. The amount of each payment must not exceed £30. A member in receipt of financial loss compensation will not be entitled to claim attendance allowance for the same event.

As the payment for attendance is optional, the council, at its first Annual Meeting, should formally decide whether or not to make these payments.

If the council decides in favour of attendance allowances, it must produce a scheme for formal adoption and make provision for it to be publically available.

The mandatory maximum for each qualifying event is £30. There is no stipulated minimum.

Payments for attendance must be in respect of official business or approved duty which are identified in the council’s Standing Orders or alternatively by specific resolution. The scheme should specify for which events payments will be made.

All members of the council will be entitled to the payment for attendance at the events specified in the scheme, but an individual member may decline to receive payment by informing (in writing) the proper officer.

Civic Head and Deputy Civic Head

Civic heads are senior posts within community and town councils. In addition to chairing major meetings the civic head is the ambassador representing the council to a variety of institutions and organisations. The Panel requires that members should not have to pay themselves for any cost associated with carrying out these duties. This requirement also applies in respect of deputy civic heads.

The Panel recognises the wide range of provision made for civic heads in respect of transport, secretarial support, charitable giving and official clothing – we consider these to be the council’s civic budgets.

Funding decisions in relation to these civic budgets are not matters of personal remuneration for the post holder but relate to the funding required for the tasks and duties to be carried out. Councils remain free to set civic budgets at whatever levels they deem appropriate for the levels of civic leadership they have in place.

For the avoidance of doubt, costs in respect of, for example, transport (physical transport or mileage costs), secretarial support, charitable giving (purchasing tickets, making donations or buying raffle tickets) and official clothing are not matters of personal remuneration for the individual holding the senior post. These should be covered by the civic budget.

Recognising that some mayors and chairs of community and town councils and their deputies are very active during their year of office, the Panel has determined that community and town councils can make a payment to the individuals holding these roles.

This is a personal payment to the individual and is entirely separate from covering the costs set out above.

The Panel has determined that the maximum payment to a chair or mayor of a community or town council is £1,500. The maximum payment to a deputy mayor or chair is £500.

Determination 50

• Community and town councils can provide a payment to the mayor or chair of the council up to a maximum of £1,500. This is in addition to the £150 payment for costs and expenses and the £500 senior salary if these are claimed.

Determination 51

• Community and town councils can provide a payment to the deputy mayor or deputy chair of the council up to a maximum of £500. This is in addition to the £150 payment for costs and expenses and the £500 senior salary if these are claimed.

Determination 52

• The application of the Remuneration Framework by relevant Group is contained in Table 11.

Making Payments to Members

Table 12 sets out each of the above determinations and if a decision is required by the council in respect of each one.

In respect of the mandated payments no decision is required and members should receive monies to which they are properly entitled as a matter of course.

Where a decision is required by the council, this should be done at the first meeting following receipt of the Annual Report.

A council can adopt any, or all, of the non-mandated determinations but if it does make such a decision, it must apply to all its members.

When payments take effect from is set out below.

On receipt of the draft Annual Report the previous autumn, councils should consider the determinations for the next financial year and use this to inform budget plans.

All members are eligible to be paid the £150 as set out in Determination 44 and Table 11, normally from the start of the financial year; unless they are elected later in the financial year, in which case they are eligible for a proportionate payment from that date. However, as 2022 is an election year different arrangements will be required.

• Members who are not standing for re-election or fail to be re-elected are entitled to part payment for the period 1 April to 8 May.
• Current members who are re-elected are entitled to the full payment, but it would be administratively reasonable for the payment to be deferred until the outcome of the election.
• New members are entitled to a proportionate payment

Other amounts payable to members in recognition of specific responsibilities or as a civic head or deputy civic head as set out in Determinations 50 and 51 are payable from the date when the member takes up the role during the financial year. For the election year the same arrangements as set out above will apply.

It is a matter for each council to make, and record, a policy decision in respect of:

• when the payment is actually made to the member
• how many payments the total amount payable is broken down into
• whether and how to recover any payments made to a member who leaves or changes their role during the financial year.

Payments in respect of Determinations 45, 46, 47 and 48 are payable when the activity they relate to has taken place.

As stated above any individual member may make a personal decision to elect to forgo part or all of the entitlement to any of these payments by giving notice in writing to the proper officer of the council.

Determination 53

• Members in receipt of a Band 1 or Band 2 senior salary from a principal council (that is Leader, Deputy Leader or Executive Member) cannot receive any payment from any community or town Council, other than travel and subsistence expenses and contribution towards costs of care and personal assistance.

Publicity requirements

There is a requirement on community and town councils to publish details of all payments made to individual members in an annual Statement of Payments for each financial year. This information must be published on council noticeboards and or websites (with easy access) and provided to the Panel by email or by post no later than 30 September following the end of the previous financial year. The Panel draws attention to the requirements stipulated at Annex 4. The Panel is concerned that a significant number of councils are still in breach of this requirement.

The Panel’s remit under the Measure

Section 153 of the Measure empowers the Panel to require a relevant authority (a principal council, a community or town council, a national park authority and a Welsh fire and rescue authority) to comply with the requirements imposed on it by an Annual Report of the Panel and further enables the Panel to monitor the compliance of relevant authorities with the Panel’s determinations.

A relevant authority must implement the Panel’s determinations in this report from the date of its annual meeting or a date specified within the Annual Report.

Monitoring compliance

The Panel will monitor compliance with the determinations in this Annual Report. Whilst the Panel has no formal enforcement powers it may share information with organisations such as Audit Wales as part of the overall review of a relevant authority’s governance and financial arrangements. If the Panel is not satisfied a relevant authority has complied with the Panel’s determinations the Panel will inform Welsh Government ministers and may publish details of non-compliance.

The following applies to all authorities including Community and Town Councils:

A relevant authority must make arrangements for publication within the authority area of the total sum paid by it in the previous financial year to each member and co-opted member in respect of salary (basic, senior and civic), allowances, fees and reimbursements in a Statement of Payments (in accordance with Annex 4 that sets out the content that must be included in the Publicity Requirements). This must be published as soon as practicable and no later than 30 September following the end of the previous financial year- and must also be submitted to the Panel no later than that date.

The following requirements do not apply to Community and Town Councils:

• A relevant authority must maintain an annual Schedule of Member Remuneration (IRPW Regulations 4 and 5). Guidance at Annex 3 sets out the content which must be included in the Schedule.
• A relevant authority must make arrangements for the Schedule’s publication within the authority area (IRPW Regulation 46) and send the Schedule to the Panel as soon as practicable and not later than 31 July in the year to which it applies. Annex 4 provides further details of the publicity requirements.

Any amendments to the Schedule made during the year must be notified to the Panel as soon as possible after the amendment is made.

Section 63 of the Local Government (Democracy) (Wales) Act 2013 amended the Local Government (Wales) Measure 2011 by inserting section 143A. This enables the Panel to take a view on anything in the Pay Policy Statements of these authorities that relates to the salary of the head of paid service (normally the Head of Paid Service or chief fire officer). Section 39 of the Local Government (Wales) Act 2015 further amended the Measure extending this function to include Chief Officers of Principal Councils. However, this function ceased on 31 March 2020.

The Welsh Government issued amended guidance to the Panel which can be found at Amended Guidance to the Independent Remuneration Panel for Wales under Section 143A of the Local Government (Wales) Measure 2011 and Section 39 of the Local Government (Wales) Act 2015. This sets the basis on which the Panel will carry out the function contained in the legislation.

The functions of the Panel and the requirements on authorities established by the legislation and the subsequent guidance are:

1. If a principal council intends to change the salary of the head of paid service, or if a fire and rescue authority intends to change the salary of its head of paid service it must consult the Panel unless the change is in keeping with changes applied to other officers of that authority (whether the change is an increase or decrease). ‘Salary’ includes payments under a contract for services as well as payments of salary under an employment contract.
2. The authority must have regard to the recommendation(s) of the Panel when reaching its decision.
3. The Panel may seek any information that it considers necessary to reach a conclusion and produce a recommendation. The authority is obliged to provide the information sought by the Panel.
4. The Panel may publish any recommendation that it makes as long as these comply with any guidance issued by the Welsh Government. It is the intention that, in the interests of transparency, it will normally do so.
5. The Panel's recommendation(s) could indicate:
   • approval of the authority's proposal
   • express concerns about the proposal
   • recommend variations to the proposal.

The Panel also has a general power to review the Pay Policy Statements of authorities so far as they relate to the heads of paid service.

It is important to note the Panel will not decide the amount an individual head of paid service will receive.

The Panel is very aware that this function is significantly different from its statutory responsibilities in relation to members' remuneration. However, it undertakes this role with clarity and openness, taking into account all the relevant factors in respect of specific individual cases. Authorities are encouraged to consult the Panel at an early stage in their decision-making on such matters. This will enable the Panel to respond in a timely manner.

Pay Policy Statements

Paragraph 3.7 of the guidance to the Panel from the Welsh Government states that “The legislation does not restrict the Panel to a reactive role”. It allows the Panel to use its power to make recommendations relating to provisions within local authorities’ Pay Policy Statements.

Changes to the salaries of chief executives of principal councils: Panel decisions 2021

Letters issued to the Local Authorities notifying them of the Panel decision can be found on the Panel website.  

• For the remuneration of members and co-opted members of relevant authorities.
• For functions relating to the salaries of Heads of Paid Service of Principal Councils and Fire and Rescue Authorities.

Introduction

Part 8 (sections 141 to 160) and schedules 2 and 3 of the Local Government (Wales) Measure 2011 (the Measure) set out the arrangements for the payments and pensions for members of relevant authorities and the functions and responsibilities of the Independent Remuneration Panel for Wales (the Panel).

Sections 62 to 67 of the Local Government (Democracy) (Wales) Act 2013 amends sections 142, 143, 144, 147, 148 and 151 of the Measure and confers additional powers on the Panel.

The powers contained in part 8 and schedules 2 and 3 of the Measure (as amended) have replaced the following Statutory Instruments:

• The Local Authorities (Allowances for Members of County and County Borough Councils and National Park Authorities) (Wales) Regulations 2002 (No. 1895 (W.196)).
• The Local Authorities (Allowances for Members of Fire Authorities) (Wales) Regulations 2004 (No. 2555 (W.227)).
• The Local Authorities (Allowances for Members) (Wales) Regulations 2007 (No.1086 (W.115)).

The Measure also has replaced the sections of the Local Government Act 1972, the Local Government and Housing Act 1989 and the Local Government Act 2000 relating to payments to councillors in Wales.

Payments for members of community and town councils are set out in Part 5 of these Regulations. The Local Authorities (Allowances for Members of Community Councils) (Wales) Regulations 2003 (No. 895(W.115)) were revoked from 1 April 2013.

Part 1

General

1. The short title of these Regulations is: “IRPW Regulations”.
2. These IRPW Regulations came into force on 1 April 2021 and replace those in force from 1 April 2012. The implementation date for each of the relevant authorities is set out in the Annual Report or Supplementary Report of the Panel.
3. Authorities are required to produce a schedule of payments to members and co-opted members no later than the 31 July each year, for submission to the Panel and publication (see paragraph 46).

Interpretation

In the IRPW Regulations:

• “The 1972 Act” means the Local Government Act 1972.
• “The 2000 Act” means the Local Government Act 2000.
• “The 2013 Act” means the Local Government (Democracy) (Wales) Act 2013.
• “Payment” means the actual or maximum amount which may be paid to members and co-opted members of a relevant authority for expenses necessarily incurred when carrying out the official business of the relevant authority.
• “Annual Report” means a report produced by the Panel in accordance with section 145 of the Measure.
• “Approved duty” in relation to community and town councils has the meaning as set out in Part 5 of these Regulations.
• “Authority” means a relevant authority in Wales as defined in Section 144(2) of the Measure and includes a principal council (county or county borough council), a national park authority and a Welsh fire and rescue authority, a community or town council.
• “Basic Salary” has the same meaning as set out in paragraph 6 of these Regulations, and may be qualified as “LA Basic Salary” to refer to the basic salary of a member of a principal council; “NPA Basic Salary” to refer to the basic salary of a member of a national park authority; and “FRA Basic Salary” to refer to the basic salary of a member of a Welsh fire and rescue authority.
• “Chief Officer” of a principal council has the meaning as defined in the Localism Act 2011.
•  “Civic Head” is the person elected by the council to carry out the functions of the chair of that council and is designated as mayor or chair.
• “Committee” includes a sub-committee.
• “Community or town council” means in relation to Part 8 of the Measure, a community council as defined in section 33 of the Local Government Act 1972 or a town council in accord with section 245B of the same Act.
• “Consultation draft” means the draft of an Annual or Supplementary report under Section 146 (7) or 147(8) of the Measure. The Panel must take account of these representations.
• “Constituent authority” – for national park authorities this is a principal council falling within the area of a national park authority; for Welsh fire and rescue authorities it is a principal council falling within the area of a fire and rescue authority.
• “Contribution to Costs of Care and Personal Assistance” has the same meaning as set out in paragraph 21 of these Regulations.
• “Controlling group” means a political group in a principal council where any of its members form part of the executive.
• “Co-opted Member” has the meaning contained in section 144 (5) of the Measure, that is those with the right to vote on matters within the remit of the committee on which they serve.
• “Co-opted Member payment” has the same meaning as set out in paragraph 19 of these Regulations.
• “Democratic Services Committee” means the principal council committee established under section 11 of the Measure.
• “Deputy Civic Head” is a person elected by the council to deputise for the mayor or chair of that council.
• “Executive” means the executive of an authority in a form as specified in sections 11(2) to (5) of the 2000 Act, as amended by section 34 of the Measure.
• “Executive arrangements” has the meaning given by section 10(1) of the 2000 Act.
• “Family absence” as defined in Section 142 (2) (b) of the Measure has the meaning given to it by Part 2 of the Measure, and the related Regulations
• “Financial Loss Allowance in relation to community or town councils has the meaning as set out in Part 5 of the Regulations.
• “Fire and rescue authority” means an authority constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies.
• “Head of paid service” means as designated under section 4(1) of the Local Government and Housing Act 1989.
• Joint Overview and Scrutiny Committee means a committee or subcommittee set up by two or more principal councils under the Local Authority (Joint Overview and Scrutiny Committees) (Wales) Regulations 2013.
• “Largest opposition group” means a political group other than a controlling group which has a greater number of members than any other political group in the authority.
• “Member” means a person who serves on an authority. 
• For a principal council or a community or town council a “Member” may be:
  • An “Elected Member” which means a person who has been elected to serve as a councillor for that authority. It is possible for a person to hold an elected office if, further to the completion of an election, no candidate has presented and a person holds that office subject to proper process.
  • A “Co-opted Member”’ which means a person who has been placed into membership of a council committee or to discharge a function subject to proper process.
  • For a national park authority, a “Member” means a person appointed by a constituent authority and a person appointed by Welsh Ministers.
  • For Welsh fire and rescue authorities a “Member” means a person appointed by a constituent authority.
• “National Park Authority” means a national park authority established under section 63 of the Environment Act 1995.
• “Official business” has the meaning contained in Section 142 (10) of the Measure in relation to the reimbursement of care, travel and subsistence costs necessarily incurred by members and co-opted members of a relevant authority (excluding community and town councils) when:

1. Attending a meeting of the authority or any committee of the authority or any other body to which the authority makes appointments or nominations or of any committee of such a body.
2. Attending a meeting of any association of authorities of which the authority is a member.
3. Attending a meeting the holding of which is authorised by the authority or by a committee of the authority or by a joint committee of the authority and one or more other authorities.
4. Attending any training or development event approved by the authority or its executive.
5. A duty undertaken for the purpose of or in connection with the discharge of the functions of an executive within the meaning of Part 2 of the 2000 Act, as amended.
6. A duty undertaken in pursuance of a standing order which requires a member or members to be present when tender documents are opened.
7. A duty undertaken in connection with the discharge of any function of the authority to inspect or authorise the inspection of premises.
8. A duty undertaken by members of principal councils in connection with constituency or ward responsibilities which arise from the discharge of principal council functions.
9. Any other duty approved by the authority, or any duty of class so approved, undertaken for the purpose of, or in connection with, the discharge of the functions of the authority or any of its committees.

• “Other political group” means a political group other than a controlling group or the largest opposition group (if any) which comprises not less than ten per cent of the members of that authority.
• “Overview and Scrutiny Committee” means a committee of the authority which has the powers set out in sections 21(2) and (3) of the 2000 Act, as amended by Part 6 of the Measure.
• “Panel” means the Independent Remuneration Panel for Wales as set out in section 141(1) and schedule 2 of the Measure.
• “Pay policy statement” means a statement produced by a relevant authority under section 38 of the Localism Act 2011.
• ‘Political group’ may be formed from members of a recognised political party or be a group of independent members unaffiliated to any recognised political party. “Presiding Member” means a member of a principal council who has been designated by that council to carry out functions in relation to the chairing of its meetings and proceedings.
• “Principal Council” is as defined by the 1972 Act and means a county or county borough council.
• “Proper officer” has the same meaning as in section 270(3) of the 1972 Act In community and town councils, the ‘Proper Officer’ may be the clerk or other official appointed for that purpose. “Public body” means a body as defined in section 67(b) of the 2013 Act.
• “Qualifying provision” means a provision that makes a variation to a previous decision of the Panel. (Section 65 (c) of the 2013 Act).
• “Qualifying relevant authority” is an authority within the meaning of section 63 of the 2013 Act, required to produce a pay policy statement.
• “Relevant authority” is set out in Section 144(2) of the Measure (as amended) and in section 64 of the 2013 Act and, for the purposes of these Regulations, includes a principal council, a community or town council, a national park authority and a Welsh fire and rescue authority.
• “Relevant matters” are as defined in Section 142(2) of the Measure.
• “Schedule” means a list setting out the authority’s decisions in respect of payments to be made during the year (as relating to that authority) to all members and co-opted members of that authority.
• “Senior Salary” has the same meaning as set out in paragraph 11 of these Regulations and may be qualified as “Principal council Senior Salary” to refer to the senior salary of a member of a principal council; “National Park Senior Salary” to refer to the senior salary of a member of a national park authority; or “Fire and Rescue authority Senior Salary” to refer to the senior salary of a member of a Fire and Rescue authority.
• “Sickness absence” means the arrangements as set out in the Annual Report.
• “Supplementary report” has the meaning contained in section 146(4 to 8) of the Measure.
• “Travelling and subsistence payment” has the same meaning as set out in paragraph 25 of these Regulations.
• “Year” has the following meanings:
  • “financial year” – the period of twelve months ending 31 March
  • “calendar year” – the period of twelve months ending 31 December
  • “municipal year” – the year commencing on the date of the annual meeting of the authority and ending the day before the annual meeting of the following year; for national park authorities and Welsh fire and rescue authorities it is the period of up to twelve months following the annual meeting of the authority.

Part 2: Schedule of member or co-opted member payments

Commencement of term of office

The term of office of:

• An elected member of a principal council or community or town council begins 4 days following the election subject to making the declaration of acceptance of that office under section 83(1) of the 1972 Act.
• A councillor member of a national park authority begins on the date on which that member is appointed as such by a constituent authority and the term of office of a Welsh Government appointed member begins on the date of that appointment. The term of office of the chair and deputy chair of the national park authority begins on their acceptance of that office further to being either elected or appointed as a chair or deputy chair of a national park authority.
• A councillor member of a Welsh fire and rescue authority begins on the date on which that member is appointed as such by a constituent authority and the term of office of the chair and deputy chair of the fire and rescue authority begins on the date of election by that authority to that office.
• A co-opted member of a relevant authority begins on the date of appointment by the relevant authority.

Schedule of payments to members (the Schedule) (does not apply to community or town councils: see Part 5)

An authority must produce annually, a schedule of payments it intends to make to its members and co-opted members. The amount of those payments must accord with the Panel’s determinations made for that year in its Annual or Supplementary Reports. The Schedule must be produced no later than four weeks following the annual meeting of the authority.

Amendment to the Schedule

An authority may amend the Schedule at any time during the year (as relating to the authority) provided that such amendments accord with the Panel’s determinations for that year.

Basic salary

An authority must provide for the payment of a basic salary, as determined by the Panel in its Annual or Supplementary Reports, to each of its members. The amount of the salary must be the same for each member. For principal councils only, this salary remains payable during a period of family absence.

A member may not receive more than one basic salary from a relevant authority, but a member of one relevant authority may receive a further basic salary by being appointed as a member of another relevant authority (except in the case as indicated in paragraph 16).

The amount of the basic salary will be set in accordance with Section 142(3) of the Measure and will be one of the following:

• The amount the authority must pay to a member of the authority.
• The maximum amount that the authority may pay to a member of the authority.

Where the term of office of a member begins or ends other than at the beginning or end of the year (as relating to the authority), the entitlement of that member is to such proportion of the basic salary as the number of days during which the member’s term of office subsists during that year bears to the number of days in that year.

Where a member is suspended or partially suspended from being a member of an authority (Part 3 of the 2000 Act refers) the part of the basic salary payable to that member in respect of the responsibilities or duties from which that member is suspended or partially suspended must be withheld by the authority. Payment must also be withheld if directed by the Welsh Ministers (Section 155(1) of the Measure).

Senior salary

Subject to paragraphs 12 to 18 an authority can make payments of a senior salary to members that it has given specific responsibilities. Such payments must accord with the Panel’s determination for the year (as relating to the authority) that the payments are made and must be set out in the Schedule of that authority. For principal councils only, a senior salary will remain payable during the family absence of the office holder.

The Panel will prescribe in its Annual or Supplementary Reports the following:

• The categories of members eligible for the payment of a senior salary which may not be the same for all authorities or categories of authorities.
• The discretion available to authorities in relation to the payment of senior salaries which may not be the same for all authorities or categories of authorities.

The amount of the senior salaries payable will be in accordance with section 142(3) of the Measure and specify:

• The amount that a relevant authority must pay to a member of the authority.
• The maximum amount that a relevant authority may pay to a member of the authority.

The Senior Salary will comprise an amalgam of the basic salary and an additional amount for the relevant specific responsibility determined by the Panel in its Annual or Supplementary Reports. This may not be the same for all authorities or categories of authorities.

The Panel in its Annual or Supplementary Reports will determine either the maximum proportion of its membership or the total number of members that an authority can pay as senior salaries. The percentage may not exceed fifty percent without the express approval of Welsh Ministers (Section 142(5) of the Measure). For principal councils only, the maximum proportion or number may be exceeded to include payment of a senior salary to an additional member who is appointed to provide temporary cover for the family absence of a senior salary office holder (subject to the 50% limit).

1. For, Fire and Rescue Authorities and National Park Authorities the maximum proportion or number may be exceeded to include the payment of a senior salary to an additional member who is appointed to provide temporary cover for the sickness absence of a senior salary holder as determined in the Annual Report or a Supplementary Report.
2. Payments to chairs of Joint Overview and Scrutiny Committees or Sub Committees are additional to the maximum proportion of its membership that an authority can pay as senior salaries subject to the overall maximum of fifty percent as contained in Section 142(5) of the Measure. The Panel will determine the amounts of such payments in an Annual or Supplementary Report.

An authority must not pay more than one senior salary to any member. A principal council member in receipt of a senior salary as leader or executive member of an authority (determined as full-time by the Panel) may not receive a second salary as a member appointed to serve on a national park authority or a Welsh fire and rescue authority.

1. Paragraph 16 does not apply to payments made to a chair of a Joint Overview and Scrutiny Committee or Sub Committee who is in receipt of a senior salary for a role that is not classified as full time equivalent. It continues to apply to leaders or members of the executive.

Where a member does not have, throughout the year specific responsibilities that allow entitlement to a senior salary, that member’s payment is to be such proportion of the salary as the number of days during which that member has such special responsibility bears to the number of days in that year.

Where a member is suspended or partially suspended from being a member of the authority (Part 3 of the 2000 Act refers) the authority must not make payments of the member’s senior salary for the duration of the suspension (Section 155(1) of the Measure). If the partial suspension relates only to the specific responsibility element of the payment, the member may retain the basic salary. Payment must also be withheld if directed by the Welsh Ministers.

Co-opted member payment

A relevant authority must provide for payments to a co-opted member as determined by the Panel in its Annual or Supplementary Reports. In relation to this regulation ‘co-opted member’ means a member as determined in Section 144(5) of the Measure and set out in paragraph 2 of these Regulations.

Where a co-opted member is suspended or partially suspended from an authority (Part 3 of the 2000 Act refers) the authority must not make payment of a co-opted member fee for the duration of the suspension (Section 155(1) of the Measure).

Payments Contribution to Costs of Care and Personal Assistance

Authorities must provide for the payment to members and co-opted members of an authority the reimbursement in respect of such expenses of arranging the care of children or dependants or for the individual member as are necessarily incurred in carrying out official business as a member or co-opted member of that authority. Payments under this paragraph must not be made:

• In respect of any child over the age of fifteen years or dependant unless the member or co-opted member satisfies the authority that the child or dependant required supervision which has caused the member to incur expenses that were necessary in respect of the care of that child or dependant in the carrying out of the duties of a member or co-opted member.
• To more than one member or co-opted member of the authority in relation to the care of the same child or dependant for the same episode of care.
• Of more than one reimbursement for care to a member or co-opted member of the authority who is unable to demonstrate to the satisfaction of the authority that the member or co-opted member has to make separate arrangements for the care of different children or dependants.

The arrangements in respect of the contribution to cost of care and personal assistance payable by an authority is to be determined by the Panel in its Annual or Supplementary Reports.

Where a member or co-opted member is suspended or partially suspended from being a member or co-opted member of the authority (Part 3 of the 2000 Act refers) the part of the contribution to the cost of care and personal assistance payable to that member or co-opted member in receipt of the responsibilities or duties from which that member or co-opted member is suspended or partially suspended must be withheld by the authority. Payment must also be withheld if directed by the Welsh Ministers for reasons other than suspension (Section 155(1) of the Measure).

An authority’s Schedule must stipulate the arrangements regarding the contribution towards costs of care and personal assistance payable and its arrangements for making claims, taking full account of the Panel’s determinations in this respect.

Travel and subsistence payments

Subject to the two paragraphs below, a member or co-opted member is entitled to receive payments from the authority by way of travelling and subsistence payments at rates determined by the Panel in its Annual or Supplementary Reports. Such payments are in respect of expenditure incurred by a member or co-opted member in the performance of the official business within or outside the boundary of the authority.

The following two paragraphs apply only to principal councils.

1. Payment of a subsistence payment to a principal council member for the performance of official business within the boundaries of a county or county borough where they are a member should only be made when the authority is satisfied that it can be justified on economic grounds. This does not apply in respect of co-opted members of a council who live outside that authority.
2. A principal council may make provision, subject to any limitations it thinks fit, for members to claim mileage expenses for official business in connection with constituency or ward responsibilities where they arise out of the discharge of the functions of the county or county borough.

Where a member or co-opted member is suspended or partially suspended from being a member or co-opted member of the authority (Part 3 of the 2000 Act refers), travelling and subsistence payments payable to that member or co- opted member in respect of the responsibilities or duties from which that member is suspended or partially suspended must be withheld by the authority. Payment must also be withheld if directed by the Welsh Ministers for reasons other than suspension (Section 155(1) of the Measure).

Part 3: Further provisions

Pensions

Under Section 143 of the Measure, the Panel may make determinations in respect of pension arrangements for principal council members in its Annual or Supplementary Reports. Such determinations may:

• Define which members for whom the principal council will be required to pay a pension.
• Describe the relevant matters in respect of which a local authority will be required to pay a pension.
• Make different decisions for different principal councils.

Payments to support the function of an authority member

An authority must provide for the requirements of a member to undertake their role and responsibilities more effectively. The way in which this support should be provided is determined by the Panel in its Annual or Supplementary Reports.

Arrangements in relation to family absence

Part 2 of the Measure sets out the rights of principal council members in relation to family absence. The Panel will set out its determinations and the administrative arrangements in relation to these payments in its Annual or Supplementary Reports.

Sickness Absence

Arrangements for long-term sickness absence of senior salary holders of principal councils, Fire and Rescue Authorities and National Park Authorities will be as set out in the Panel’s Annual Report or Supplementary Report.

Part 4: Payments

Repayment of payments

An authority can require that such part of a payment be repaid where payment has already been made in respect of any period during which the member or co-opted member concerned:

1. Is suspended or partially suspended from that member’s or co-opted member’s duties or responsibilities in accordance with Part 3 of the 2000 Act or Regulations made under that Act.
2. ceases to be a member or co-opted member of the authority.
3. or in any way is not entitled to receive a salary, allowance or fee in respect of that period.

Forgoing payments

Under Section 154 of the Measure, any member or co-opted member may by notice in writing to the proper officer of the authority elect to forgo any part of their entitlement to a payment under the determination of the Panel for that particular year (as relating to the authority).

Part 5: Specific provisions relating to community and town councils (“the council”)

Interpretation

For the purposes of this Part the term member means both an elected member and a co-opted member.

Payments

1. The Annual Report or a Supplementary Report determines the arrangements and amount of an annual payment to members in respect of costs incurred in carrying out the role of a member and if appropriate take account of the variation in size or financial circumstances of different councils.
2. The council may make payments to members in respect of costs of travel for attending approved duties within or outside the area of the council. The amounts claimable will be set out in the Annual or Supplementary Report of the Panel.
3. The council may reimburse subsistence costs to its members when attending approved duties within or outside the area of the council. The arrangements for reimbursement will be set out in the Annual or Supplementary Report of the Panel.
4. The council may pay compensation for Financial Loss to its members where such loss has occurred for attending approved duties within or outside the area of the council. The payments will be set out in the Annual or Supplementary Report of the Panel.
5. The council may make a payment to the chair or mayor and deputy chair or mayor of the council for the purposes of undertaking the role of that office. The payment will be set out in the Annual or Supplementary Report of the Panel.
6. The Annual Report or a Supplementary Report determines the arrangements for payments to members of a council who undertake senior roles and if appropriate take account of the variation in size or financial circumstances of different councils.
7. The council must reimburse the contribution to costs of care and personal assistance to a member if claimed, as determined in the Annual Report of the Panel.

A member may elect to forgo any part of an entitlement to payment under these Regulations by giving notice in writing to the proper officer of the council.

A member making a claim for compensation for Financial Loss must sign a statement that the member has not made and will not make any other claim in respect of the matter to which the claim relates.

“Approved Duty” under this Part means:

1. Attendance at a meeting of the council or of any committee or sub- committee of the council or of any other body to which the council makes appointments or nominations or of any committee or sub-committee of such a body.
2. Attendance at any other meeting the holding of which is authorised by the council or a committee or sub-committee of the council, or a joint committee of the council and one or more councils, or a sub-committee of such a joint committee provided that at least two members of the council have been invited and where the council is divided into political groupings at least two such groups have been invited.
3. Attendance at a meeting of any association of councils of which the council is a member.
4. Attendance at any training or development event approved by the council.
5. Any other duty approved by the council or duty of a class approved by the council for the discharge of its functions or any of its committees or sub-committees.

Part 6: Miscellaneous

Arrangements for payments

The Schedule of an authority must set out the arrangements for payment to all members and co-opted members of that authority. Such payments may be made at such times and at such intervals as determined by the authority.

Claims

An authority must specify a time limit from the date on which an entitlement to travelling or subsistence payments arise during which a claim for must be made by the person to whom they are payable. However, this does not prevent an authority from making a payment where the allowance is not claimed within the period specified.

Any claim for payment of travelling, subsistence or care costs in accordance with these Regulations (excluding claims for travel by private vehicle or bicycle) shall be accompanied by appropriate receipts proving actual cost.

Avoidance of duplication

A claim for a payment of travelling, subsistence or care costs must include, or be accompanied by, a statement signed by the member or co- opted member that the member or co-opted member has not made and will not make any other claim in respect of the matter to which the claim relates.

Records of payments

An authority must keep a record of the payments made in accordance with these Regulations as set out in an Annual or Supplementary Report.

Publicity requirements

(The required content of publicity requirements is contained in an annex to the Annual Report)

An authority must, as soon as practicable after determining its Schedule of Remuneration for the year under these Regulations and any Report of the Panel and not later than 31 July of the year to which the Schedule refers, arrange for the Schedule’s publication within the authority’s area and to notify the Panel. (This section does not apply to community and town councils).

As soon as practicable and no later than 30 September following the end of the financial year all relevant authorities must publicise within the authority’s area and notify the Panel:

• the total sum paid by it to each member or co-opted member in respect of basic salary, senior salary, co-opted member fee, travel and subsistence payments.
• the total expenditure on contribution towards costs of care and personal assistance.

In the same timescale and in the same manner, an authority must publicise any further remuneration received by a member nominated or appointed to another relevant authority. (This section applies only to principal councils).

Publicising the reports of the Panel

Under Section 146(7) (a) and (b) of the Measure, the Panel will send a consultation draft of its Annual Report or Supplementary Report to all relevant authorities for circulation to authority members and co-opted members, so that representations can be made by members and co-opted members to the Panel, normally in a period of eight weeks.

The Panel will determine in its Annual or Supplementary Reports the arrangements publicising its Reports in accordance with Section 151 and 152 of the Measure.

Monitoring compliance with the Panel’s determinations

Section 153 of the Measure determines that relevant authorities must comply with the requirements imposed by the Panel in its Annual Reports. It also empowers the Panel to monitor the payments made by relevant authorities and for it to require the provision of information that it specifies. The requirements under this section will be set out in the Annual Report of the Panel.

Principal councils, national park authorities (NPAs) and Welsh fire and rescue authorities (FRAs) (but not community and town councils) must maintain an annual Schedule of Member Remuneration (the ‘Schedule’) which is in accord with the Panel’s determinations on member salary and co-opted member payments and which must contain the following information:

In respect of a principal council:

1. Named members who are to receive only the basic salary and the amount to be paid.
2. Named members who are to receive a Band 1 and Band 2 senior salary, the office and portfolio held and the amount to be paid.
3. Named members who are to receive a Band 3, Band 4 and Band 5 senior salary, the office and portfolio held and the amount to be paid.
4. Named members who are to receive a civic salary and the amount to be paid.
5. Named members who are to receive the co-opted member fee and whether chair or ordinary member and the amount to be paid.
6. Named members who are to receive a senior salary as a chair of a Joint Overview and Scrutiny Committee or Sub Committee and the amount to be paid.
7. Named members in receipt of a specific or additional senior salary approved by the Panel and the amount to be paid.

In respect of National Park and Fire and Rescue Authorities:

1. Named members who are to receive a basic salary and the amount to be paid.
2. Named member who is to receive a senior salary as a chair of the authority and the amount to be paid.
3. Named members who are to receive a senior salary as deputy chair of the authority or a committee chair and the amount to be paid.
4. Named members who are to receive the co-opted member fee and whether a chair or ordinary member and the amounts to be paid.

Amendments made to the Schedule during the municipal year must be communicated to the Panel as soon as it is practicable.

Principal councils must confirm in their annual Schedule that the maximum limit of senior salaries set for the council has not been exceeded.

Principal councils, NPAs and FRAs must include a statement of allowable expenses and the duties for which they may be claimed for care, travel and subsistence in their annual Schedule which is in accord with the Panel’s determinations.

The Schedule must set out the arrangements for the payment of salaries, allowances and fees to all members and co-opted members of the relevant authority (IRPW Regulation 35); arrangements for making claims for care and personal assistance, travel and subsistence expenses (IRPW Regulations 24 and 36-37); arrangements for the avoidance of duplication (IRPW Regulation 38) and arrangements for re-payment of salaries, allowances and fees (IRPW Regulation 33). This schedule must also include the duties for which members and co-opted members are able to claim reimbursement towards travel, subsistence and care and personal assistance costs.

Principal councils must declare in the Schedule whether:

• A statement of the basic responsibility of a councillor is in place.
• Role descriptors of senior salary office holders are in place.
• Records are kept of councillor attendance.

Principal councils, NPAs and FRAs must make arrangements for the publication of the Schedule of Member Remuneration as soon as practicable after its determination and no later than 31 July of the year to which it applies. The Schedule should be published in a manner that provides ready access for members of the public.

The Schedule must also be sent to the Panel Secretariat to be received by 31 July.

Any changes to the schedule during the year must be promptly publicised in the above manner and all changes notified to Panel Secretariat promptly.

Retention. The time limit for the schedule to be retained should be consistent with the council’s policy on document retention.

In accordance with Section 151 of the Wales (Local Government) Measure 2011 the Panel requires that:

Relevant authorities must publish a Statement of Payments made to its members for each financial year. This information must be published in a form and location that is easily accessible to members of the public no later than 30 September following the end of the previous financial year and in the same timescale also provided to the Panel. The following information must be provided:

1. The amount of basic salary, senior salary, civic salary and co-opted member fee paid to each named member or co-opted member of the relevant authority, including where the member had chosen to forego all or part of the salary, or fee for the municipal year in question. Where a senior salary has been paid, the title of the senior office held is to be provided.
2. The payments made by community and town councils to named members as:
   1. payments in respect of telephone usage, information technology, consumables etc.
   2. responsibility payments
   3. allowances made to a mayor or chair and deputy mayor or deputy chair
   4. compensation for Financial Loss
   5. costs incurred in respect of travel and subsistence
   6. any payments made for attendance on official business or approved duty.
3. All travel and subsistence expenses and other payments received by each named member and co-opted member of the relevant authority, with each category identified separately.
4. The amount of any further payments received by any named member nominated to, or appointed by, another relevant authority or other public body as defined by Section 67 of the Local Government (Democracy) (Wales) Act 2013, namely:
   1. a local health board
   2. a police and crime panel
   3. a relevant authority
   4. a body designated as a public body in an order made by the Welsh Ministers.
5. Names of members who did not receive basic or senior salary because they were suspended for all or part of the annual period to which the Schedule applies.
6. In respect of the publication of the contribution towards costs of care and personal assistance, relevant authorities are only required to publish the total amount reimbursed during the year. It is a matter for each authority to determine its response to any Freedom of Information requests it receives. However, it is not intended that details of individual claims should be disclosed.

Nil returns are required to be published and provided to the Panel by 30 September.

Retention. The time limit for the publications to be retained should be consistent with the council’s policy on document retention.

The numbers of most of the determinations contained within this report have changed from previous reports.

To assist authorities, this table sets out the determinations in this report which are entirely new or have been updated.

Summary of new and updated determinations contained in this report

Principal Councils

• Determination 1: The basic salary in 2022 to 23 for elected members of principal councils shall be £16,800.
• Determination 2: Senior salary levels in 2022 to 23 for members of principal councils shall be as set out in Table 4.
• Determination 3: Where paid, a civic head must be paid a Band 3 salary of £25,593 in accordance with Table 4.
• Determination 4: Where paid, a deputy civic head must be paid a Band 5 salary of £20,540 in accordance with Table 4.
• Determination 5: Where appointed and if remunerated, a presiding member must be paid £25,593 in accordance with Table 4.

Assistants to the Executive

• Determination 13: The Panel will decide on a case-by-case basis the appropriate senior salary, if any, for assistants to the executive.

National Park Authorities

• Determination 23: The basic salary for NPA ordinary members shall be £4,738 with effect from 1 April 2022.
• Determination 24: The senior salary of the chair of a NPA shall be £13,531 with effect from 1 April 2022.
• Determination 25: A NPA senior salary of £8,478 must be paid to a deputy chair where appointed.
• Determination 26: Committee chairs or other senior posts can be paid. This shall be paid at £8,478.

Fire and Rescue Authorities

• Determination 30: The basic salary for FRA ordinary members shall be £2,369 with effect from 1 April 2022.
• Determination 31: The senior salary of the chair of a FRA shall be £11,162 with effect from 1 April 2022.
• Determination 32: A FRA senior salary of £6,109 must be paid to the deputy chair where appointed.
• Determination 33: Chairs of committees or other senior posts can be paid. This shall be paid at £6,109.

Payments to Co-opted Members of Principal Councils, National Park Authorities and Fire & Rescue Authorities

• Determination 40: The appropriate officer within the authority must set in advance whether a meeting is programmed for a full or half day. When the meeting is set for a full day the fee will be paid on this basis even if the meeting finishes within four hours.

Contribution towards Costs of Care and Personal Assistance (CPA)

• Determination 43: All relevant authorities must provide a payment towards necessary costs for the care of dependent children and adults (provided by informal or formal carers) and for personal assistance needs as follows:
  • Formal (registered with Care Inspectorate Wales) care costs to be paid as evidenced.
  • Informal (unregistered) care costs to be paid up to a maximum rate equivalent to the Real Living Wage hourly rates as defined by the Living Wage Foundation at the time the costs are incurred. This must be for the additional costs incurred by members to enable them to carry out official business or approved duties. Each authority must ensure that any payments made are appropriately linked to official business or approved duty. Payment shall only be made on production of receipts from the care provider.

Community and Town Councils

• Determination 44: Community and town councils must make available a payment to each of their members of £150 per year as a contribution to costs and expenses.
• Determination 45: The payment for members undertaking a senior role is an annual amount of £500 as set out in Table 11.
• Determination 48: Community and town councils can pay financial loss compensation to each of their members, where such loss has occurred, for attending approved duties as follows:
  • Up to £57.20 for each period not exceeding 4 hours
  • Up to £114.40 for each period exceeding 4 hours but not exceeding 24 hours
• Determination 49: Each council can decide to introduce an attendance allowance for members. The amount of each payment must not exceed £30. A member in receipt of financial loss will not be entitled to claim attendance allowance for the same event.
• Determination 52: The application of the Remuneration Framework by relevant Group.

Independent Remuneration Panel for Wales
Room N.03
First Floor
Crown Buildings
Cathays Park
Cardiff
CF10 3NQ

Telephone: 0300 0253038

E-mail irpmailbox@gov.wales

The Report and other information about the Panel and its work are available on our website.