Allowances scheme
All councils are required to approve a scheme of allowances at the beginning of each financial year. Schemes may be amended during the course of a year, but a completely new scheme can only be introduced from 1 April in any year.
The Members’ Allowances Panel undertook a full review of the existing scheme of allowances for councillors and a report with their findings and recommendations was submitted to the Annual Meeting of council on 18 May 2023. All the Panel’s recommendations were endorsed by the council, with the exception of the Special Responsibility Allowance for the role of Review Panel Chairmen.
The council resolved to ask the Panel to reconsider the Special Responsibility Allowance for the Review Panel Chairmen in light of changes which had been made to the key areas of responsibility of this role. The Panel will therefore meet shortly to consider this element of the Scheme and their findings and recommendations, will be detailed within its revised report once available.
Members expenses walkthrough
Scheme details
Summary of allowances
The scheme of allowances has 2 main types of remuneration for members:
- basic allowance
- special responsibility allowance.
Pro rata adjustments for these allowances will be calculated on a daily basis if any of the following applies:
- a member leaves the council
- a new member is elected
- responsibilities change
- rates decided by the council change during the year.
Basic allowance
Each member receives a basic allowance of £15,264 per year which recognises the time devoted to their work. This includes:
- meetings with constituents
- political group meetings
- incidental costs such as:
- use of home
- telephone use
- postages.
Subject to Income Tax and National Insurance contributions: Yes
How to claim
An automatic monthly payment is paid so no claim is required.
Special responsibility allowances
Payable where members hold positions that require spending more time and effort on council affairs than is expected of other members.
A member will only receive payment of the highest applicable allowance.
| Committee | Role | Allowance |
|---|---|---|
| Cabinet | Leader of the council | £45,792 |
| Deputy Leader of the council | £30,528 | |
| Other Cabinet members | £22,896 | |
| Leader of the main opposition group | £11,448 | |
| Overview and scrutiny, Overview management, Planning committee and Review Panel | Chairmen | £15,264 |
| Vice Chairmen | £3,816 | |
| Audit, Pensions and Licensing Act 2003 Committees | Chairmen | £7,632 |
| Licensing and Staff Terms and Conditions Committee | Chairmen | £3,816 |
Supplements are determined by members holding group offices in groups with 6 or more members.
| Group | Role | Allowance |
|---|---|---|
| Conservative Group | Secretary | £7,518 |
| Liberal Democrat Group | Secretary | £6,835 |
| Independent Group | Secretary | £2,734 |
Calculation for the Group Officer allowance is shown below:
- Basic Allowance £15,264 x 1.5 = £22,896 ÷ 67 (number of elected members) x number of members in a group
- To be paid where there are 6 or more councillors in a group
- The allowance be paid to a Group Leader and/or Group Secretary of an Opposition Group, the allocation of monies be determined by the Group.
Subject to Income Tax and National Insurance contributions: Yes
How to claim
An automatic monthly payment is paid so no claim is required.
Childcare and dependant carer allowances
We pay allowances to members for childcare and dependant care expenses that occur when they are on approved duties.
Childcare allowance
This is paid at the National Living Wage rate which is currently £12.71 per hour and is limited to children aged 14 or under.
Subject to Income Tax and National Insurance contributions: Yes
Depandant care allowance
The allowance is paid at the National Living Wage rate for home care currently £12.71 per hour up to a maximum of 25 hours per month. There must be medical or social work evidence that care is required.
Subject to Income Tax and National Insurance contributions: Yes
How to claim
Childcare and dependant carer receipts must be provided to show the care provided on the dates of approved duties. If another member of the household is looking after a child or dependant whilst the member is away they cannot claim.
Only one claim per month can be made per members’ household.
A childcare and Dependant Carer’s Allowance form is available from the group office.
Co-optee's allowances
When a co-optee is appointed to a committee or sub-committee they can be paid an allowance for attending meetings and conferences. However, this is not available when given the time off work without any loss of earnings. The allowance is £60 per meeting.
Subject to Income Tax and National Insurance contributions: Yes
How to claim
More information about the allowances will be provided to relevant co-optees via democratic services.
Travel and subsistence allowances
These allowances can only be claimed for duties which have been approved in advance by the council such as:
- council meetings, the Cabinet, committees or sub-committees
- such other duties as are approved in advance by the council, the Cabinet, committees or sub committees
- seminars, organised by council departments or otherwise approved by the council, the Cabinet, committees or sub-committees
- attendance at meetings with officers, members or constituents on legitimate council business
- political group meetings
- pre arranged inter political group meetings, with officers present, to which at least two groups are invited. (The meetings to be called by officers after consultation and agreement of the groups, to take place on council premises, to have specific topics and attendance to be authenticated by an appropriate signed document)
- outside bodies as agreed by the group secretaries and authorised by the council
- parish and town council meetings
- such other duties as are approved in advance by the Chief Executive in consultation with the Executive Director of Corporate Resources. Any claims disallowed, at the request of the member, should be referred to the members' allowances panel in the form of a written submission. Any requests are considered on a quarterly basis
Allowances cannot be claimed for events which are primarily political, religious or social in nature. Receptions and civic functions are excluded.
Travelling allowances
Vehicles
Members can claim mileage for using their own vehicle, a family member's or hired vehicle.
From April 2026 the Inland Revenue have deemed that the following rates (which apply regardless of engine size) will be used to calculate the profit or loss element of mileage reimbursements:
- up to 10,000 miles in a tax year - 55p per mile
- additional miles over 10,000 - 25p per mile
- cycle - 20p per mile
Travel allowances from 1 April 2023:
| Vehicle type | Size of vehicle | Mileage | Allowance |
|---|---|---|---|
| Standard car user | Any | Up to 10,000 | 55p per mile |
| Any | Over 10,000 | 25p per mile | |
| Bicycle | Any | 20p per mile | |
| Public transport | Actual cost |
The cost of tolls, ferries and parking fees can also be claimed including parking for overnight stays.
Public transport
Public transport can be claimed for second class fares including seat reservation and luggage storage fees. If saver options are used then the lower amount should be claimed for. Only in exceptional circumstances should first class train fares be claimed, at the discretion of the Chief Executive.
Taxi hire
In urgent cases or if no public transport is available. The fare and any reasonable gratuity may be claimed. In any other case members can only claim the cost of travelling by public transport.
Air travel (UK or abroad)
The actual cost of air travel can be claimed as long as it doesn’t exceed the cost of the cheapest alterative form of transport. If there is a significant time saving, members can claim either the:
- ordinary fare or any available fare by regular air service
- fare paid by the member if there is no alternative or if urgent
Subsistence allowances
These allowances are paid for duties outside our boundary, certain meals with receipts required as proof. Claims of £3 or less can be self-certified where a receipt cannot be obtained. Forms are provided by the group office.
If a meal is taken on a train where there is an entitlement, the cost as long as it is reasonable, will be reimbursed. For official visits abroad reasonable expenses are also reimbursed. Receipts must be provided for these meals.
Individual meals are not claimable if an overnight allowance is being claimed.
| Type of allowance | Timescale | Allowance amount |
|---|---|---|
| Breakfast | 4 hours or more before 11am | £8.60 |
| Lunch | 4 hours or more including 12noon to 2pm | £11.72 |
| Tea | 4 hours or more including 3 to 6pm | £4.62 |
| Dinner | 4 hours or more ending after 7pm | £23.44 |
| Overnight covering 24 hours (inner London) | £218.39 | |
| Overnight covering 24 hours (elsewhere) | £164.30 | |
| Out-of-pocket expenses | Per night | £6.26 |
Subject to Income Tax and National Insurance contributions: No
How to make a claim
Members should provide a full description of the duties involved for each claim. At members meetings attendance sheets will be used to verify claims. Where meetings are with other members of officers this should be detailed on the form.
All receipts including VAT receipts for claims for fuel for business mileage, need to be provided. The petrol receipt must be obtained before making the journey. One receipt can apply to several journeys.
Any claims must be made within 2 months of the date of the meeting or event.
Claims for travel and subsistence allowances can be made using the claim form book provided. Claims should be returned to the group office.
Conference allowances
We are able to pay travel and subsistence allowances to members attending approved conferences or similar meetings on behalf of the council. This only applies to matters which in the council's opinion relate to the interests of the area or its inhabitants. Attendance at conferences or meetings relating to trade or of a political nature cannot be approved for the payment of expenses.
Travel expenses to conferences are normally paid based on second class rail fares even if the member has used their own transport. If there is no convenient public transport or official passengers are carried the appropriate mileage rate may be paid.
Members do not need to claim expenses if conference fees, travel expenses, meals and accommodation is paid directly by the council.
If members decide to make their own arrangements and pay for accommodation and meals they need to consider the maximum subsistence allowance.
The actual cost or the maximum allowance, whichever is less, is payable for overnight accommodation.
Soft drinks, tea and coffees can be claimed with a meal but no other drinks, newspapers or laundry expenses. Any telephone calls to the group office and one home telephone call are claimable.
How to claim
All receipts need to be submitted including when claiming for the maximum allowance. The travel and subsistence allowance claim book can be completed for conference allowances.
Advice is available from the Director of Corporate Resources.
Income tax
Basic, special responsibility, childcare & dependant carer allowances are treated by HMRC as taxable emoluments under Schedule E and tax is deducted in accordance with tax codes supplied by the Inspector of Taxes.
Members have the option of having tax deducted under the normal ‘Pay AS You Earn’ arrangements in accordance with the recipient’s code number, or at the basic rate with an adjustment by HMRC at the end of the tax year, if appropriate.
Individual Member may be able to offset some expenses against their tax liability. This is a matter for the members to discuss with HMRC. Where additional household expenses are incurred (such as light, heating etc) relating to those parts of a members’ home that are used for duties as Members, the Revenue may make standard reduction of £135 per year (an amount previously agreed between the Association of Councillors and Inland Revue Head Office) to cover this.
Queries should be made direct to:
HM Revenue & Customs
Pay As You Earn
Ref. 391/H700C
PO Box 4000
Cardiff
CF14 8HR
Telephone 0300 200 3300
National Insurance contributions and social security implications
Basic and special responsibility allowances are subject to the deduction of class 1 National Insurance contributions for any pay period which is at least equal to the lower earnings limit. This is currently £1,048 per month.
Members will pay a lower rate if they are:
- a married woman or widow with a ‘valid certificate of election’
- deferring National Insurance because they have another job
Members won’t pay any contribution if they have reached state pension age and have provided proof of age such as birth certificate or passport.
Overpayments
Total allowance contributions combined with payments on other incomes may exceed the maximum set by Department of Work and Pensions (DWP).
If an overpayment is made on class 1 contributions a refund is automatically paid by the DWP at the end of the tax year. Self-employed members paying class 2 contributions have to apply to DWP for a refund.
Where members expect to pay more than the annual maximum they may apply to DWP for payment of National Insurance contributions to be deferred in one or more of the employments. This is advisable as opposed to awaiting a refund.
Further advice
For any advice about complex pension and benefit matters contact DWP.
