£190k a year extra cost of 16.9% councillor pay increase funded via ‘council tax up or reduce services’

The Independent Remuneration Panel for Wales (IRPW) has been criticised by Wrexham Councillors for calling pay rises an “insignificant” cost to councils, with a warning the money would have to be found from either increasing council tax or cutting services.

Candidates who are elected next year could earn a basic salary of £16,800 if new proposals are taken forward, in a move that has been described as a ‘significant reset’ to attract a diverse range of people choosing to stand.

The IRPW said “Levels of remuneration need to be set at a level sufficient to encourage a diversity of willing and able people to undertake local governance through elected, appointed or co-opted roles. It is important to promote a culture which encourages take up of remuneration to ensure that people from all walks of life can participate confidently in our democracy.”

The current £14,368 basic salary is suggested to increase by 16.9% to £16,800.

Councillors at the Democratic Services Committee yesterday debated the topic, with the report before them telling them the pay increase would mean an extra £189,228 a year expenditure for the local authority from 2022/23.

Cllr Derek Wright explained his position, “Initially I was against this but I think that was a selfish act. Because a film sent out about three years ago showed low income people find it difficult to become councillors as the financial remuneration isn’t enough for them to survive. No one should be prevented from standing or becoming a councillor due to the financial reasons.”

“We have just discussed diversity and democracy. This increase in salary will definitely encourage a more diverse section of people to come forward for elections”

“I do believe an increase of 16% to councillors is an insult to the people we represent. Public Service employees have received little or no increased income since 2012. Working people are facing increasing costs.”

Cllr Wright also explained councillors could give any or part of increases back, donate it to charity or keep it.

Cllr Brian Apsley said, “The panel acknowledge that there’s been slippage for 12 years. So why haven’t they put forward proposals every year until caught up? You could have a set plus percentage figure, maybe about 3% on top of RPI or CPI or indeed on top of the increase in the average pay rises in Wales. From their proposals, I don’t disagree with the principle to set a level to encourage diversity. I disagree with them saying that these proposals do not have a significant impact on the authorities income and expenditure.

Cllr Mike Davies explained his history with the fire service, “For the last 10 years or so, wages have not kept up with earnings. In fact, we received no pay raise at all for several years, and then a couple of cases 1% and that applies to pretty much all of the public sector, I think would look pretty bad for us as councillors to be looking to get 16%.

“Chances are that teachers, nurses etc etc are highly unlikely to get anything more than 2% or 3% a year for the next few years at least. I believe such a big increase at a time many people are receiving no extra pay will cause a lot of resentment. Councillors are often accused by residents of being out of touch, I think such an increase would only serve to increase those thoughts.”

Chair of the meeting Cllr Malcom King explained the position of the committee, “The technical position is we don’t have a power to reject it. We can comment on it. They are an independent body and we make comments each time and they haven’t ignored it, they just haven’t agreed with us. So I suspect that’s going to happen this time.”

“I’ve also changed my mind. I’ve been against this for years but do now accept the effect that that does have on people from lower incomes preventing them from becoming councillors, because it simply isn’t enough financial remuneration for it.”

The wording from the pay panel – not Wrexham Council – describing the pay increase meaning an ‘insignificant’ cost rise for the council was also challenged, with the basic increase in pay being tagged at £77,000 by the Chair of the committee, with Cllr King adding: “I wouldn’t consider that insignificant and to find that we would have to either put the council tax up further, which is very difficult or, reduce services so that £77,000 on its own, plus all the other ones, don’t come from nowhere. So I think that wasn’t technically very correct to say that the increases overall would be fairly insignificant in cash terms.”

The Head of Democratic Services was authorised to make a response on behalf of the Council to the Independent Remuneration Panel for
Wales – after taking a steer from comments in the meeting, so likely the general feel against the rise however if there is a rise it should be done incrementally.

You can also make your views known by emailing irpmailbox@gov.wales by the 26th of November. The final annual report will be published in February, which historically rarely has any major changes compared to the draft report.