Part 6 - Payments to Members

PART A - Scheme for Payment of Allowances under the Local Authorities (Members' Allowances) (England) Regulations 2003

INTRODUCTION

The Council approved a new Scheme of allowances that it pays to members. The new allowances are payable to members from 1 April 2008 until 31 March 2009 unless amended.

RESTRICTIONS

Where a member is suspended or partially suspended from his/her responsibility or duties in accordance with Part III of the Local Government Act 2000 basic, special responsibility, travel and subsistence and co-optees' allowances may be withheld.

Where a member is a member of another authority, that member may not receive allowances from more than one authority in respect of the same duties.

Where an allowance has been paid to a member for a period in respect of which the member was suspended or partially suspended, or ceased to be a member of the authority or was not entitled to receive the allowance the Council may require repayment.

MEMBERS' ALLOWANCES

1. BASIC ALLOWANCE

A basic allowance of £4911 per year, covering the period from 1 April 2008 to 31 March 2009, is paid to all councillors (unless they choose not to receive it). Where a member is elected part way through the year, or ceases to be a member part way through the year, an appropriate proportion of the sum is paid.

The basic allowance is paid monthly, by equal instalments, no later than the 28^th day of each month. Payments are made by credit transfer directly to the member's bank account.

This allowance is taxable and is liable for National Insurance.

2. SPECIAL RESPONSIBILITY AND OTHER ALLOWANCES

a) Members

As well as a basic allowance, a special responsibility allowance is paid to those Members who have special responsibilities. The special responsibilities, and the annual payments, are listed below:

Special responsibility	Allowance
Leader of the Council	£18,055
Deputy Leader(s) of the Cabinet	£9,930 each
Cabinet members (Portfolio holders with specific functional responsibilities)	£4,514 each
Leader of the largest Opposition Group Policy Development Panel - Chairman	£3,611 £3,611
Policy Development Panel - Vice-Chairman	£1,444
Performance Monitoring Panel - Chairman	£3,611
Performance Monitoring Panel - Vice-Chairman	£1,444
Development Control Committee - Chairman	£4,514
Development Control Committee - Vice-Chairman	£1,806
Licensing Committee - Chairman	£2,708
Licensing Committee - Vice-Chairman	£1,083
Standards Committee - Chairman	£1,444
Standards Committee - Vice-Chairman	£632
Political Group Leaders -	£361.00 per group leader plus £36.00 per member in political group

Where a member carries out any of the special responsibilities mentioned above for a period of less than a year then an appropriate proportion of the special responsibility allowance will be paid to that Member.  No member is allowed to receive more than 2 special responsibility allowances, plus the political group leaders allowance, at any one time.

Special responsibility allowances are paid monthly, by equal instalments, no later than the 28^th day of each month. Payments are made by credit transfer directly to the member's bank account.

These allowances are taxable and are liable for National Insurance.

3. CO-OPTEES' ALLOWANCE

A co-optees allowance of £361.00 per year is paid to independent and parish members of the Standards Committee who are not members of the authority.

Where any person is appointed as an independent or parish member of the Standards Committee for a period of less than a year then an appropriate proportion of the co-optees allowance will be paid to that person.

Co-optees' allowances are paid monthly, by equal instalments, no later than the 28^th day of each month. Payments are made by credit transfer directly to the person's bank account.

These allowances are taxable and are liable for National Insurance.

(If an independent or parish member is appointed as either Chairman or Vice-Chairman of the Standards Committee they are, in addition, entitled to the approved special responsibility allowance detailed in paragraph 2 above.)

4. DEPENDANTS' CARERS' ALLOWANCE

A dependants' carers' allowance of up to £8.00 per hour is paid to any member who has to pay for the care of dependants (whether children, elderly people or people with disabilities) in order to carry out any of the duties detailed in Schedule 1 below.

Members will be paid the actual cost of care up to the maximum of £8.00 per hour. Members are able to claim for the time spent on the approved duty, and for reasonable travelling time.

The allowance will not be paid where someone in the member's own household cares for the dependant.

Where the member wants the allowance to be paid with that month's basic allowance, claims must be delivered to the Council by the seventh day of that month. Claims must be made within two months from the date on which the expenditure was incurred. Claims submitted out of time will require specific approval from the Head of Finance.

Dependants' Carer's allowance is based on the reimbursement of expenditure incurred and is not taxable.

5. TRAVEL AND SUBSISTENCE

The travel and subsistence allowances paid by South Holland District Council are based on those rates that are paid by Lincolnshire County Council. The following travel allowances will be paid for the duties listed in Schedule 1 below:-

Public Transport

(a)(i) The rate for travel by public transport shall be decided having regard to standard/standard plus class fares, ensuring that the rate does not exceed that what is paid by the member. First class travel should only be used if the particular circumstances require this higher cost option.

Receipts should be submitted where claims are made under the above paragraph.

(ii) The rates specified above may be increased by supplementary allowances that do not exceed the expenditure actually incurred:-

• On Pullman car or similar supplements, reservation of seats and deposit or porterage of luggage, and
• On sleeping accommodation engaged by the member for an overnight journey, subject, however, to reduction by one third of any subsistence allowance payable to him/her for that night.

Receipts should be submitted where claims are made under the above paragraph.

Private Cars

(b)(i) The rate for travel by a private motor car (unless the member is a passenger only), shall be 40p per mile for the first 10,000 miles and 25p per mile thereafter. This rate is the statutory rate specified as having no 'profit element' by the Inland Revenue. There are therefore no taxation implications. This rate is set irrespective of the cubic capacity of the vehicle.

(ii) The rate specified in the above paragraph may be increased:-

• For the carriage of each passenger, that does not exceed four, to whom an allowance would otherwise be payable under any enactment:
  • By 5.0p per mile, provided that the member shall record on their claims form the details of any official passengers, whether the payment is claimed for them or not.
• By the amount of any expenditure incurred on parking fees (including overnight parking), tolls or ferries.

Receipts should be submitted where claims are made under the above paragraph.

Motor Cycles

(c)(i) The rate for travel by motor cycle shall be 24p per mile irrespective of the mileage covered or the vehicle cubic capacity. This is the rate approved by the Inland Revenue.

Taxi Cab or Private Hire Vehicle

(d)(i) Where a member uses a taxi cab or private hire vehicle, the Council will pay the rate for travel by a taxi-cab or private hire vehicle, shall be the actual fare amount and in any other case the amount of the fare for travel by appropriate public transport.

Receipts should be submitted where claims are made under the above paragraph.

Hire Car

(e)(i) Where a member hires a motor vehicle (other than a taxi cab or private hire vehicle) the rate for travel shall be the rate applicable had the vehicle belonged to the member using it providing that, given approval, the rate may be increased to an amount that does not exceed the cost of hiring.

Receipts should be submitted where claims are made under the above paragraph.

An element of travelling allowances may be subject to income tax or national insurance.

Where the member wants the allowance to be paid with that month's basic allowance, claims must be delivered to the Council by the seventh day of that month. Claims must be made within two months from the date on which the expenditure was incurred. Claims submitted out of time will require specific approval from the Head of Finance.

6. SUBSISTENCE ALLOWANCE

The Council will pay the following subsistence rates (the rates payable are due to increase each year, retrospectively from 1st April, by the increase in inflation as measured by the CPI index as at 31 March):

(a) Where the member must be absent from his or her home (not involving an absence overnight) for more than four hours, including the following times (for each meal claimed):-

i)	Before 11 am - Breakfast	£5.85
ii)	Noon to 2 pm - Lunch	£8.30
iii)	Ending after 7 pm - Evening Meal	£11.05

(b) In the case of an absence overnight an officer should be requested to book and pay for appropriate accommodation to allow for VAT to be reclaimed and relevant discount prices to be accessed. Reasonable meal expenses taken at the hotel in question will also be paid for directly by the Council. In these circumstances the member will not be eligible to claim subsistence allowances for the meal. In terms of the mentioned 'reasonable expenses' a figure of £107.75 (excl VAT) (£134.80 (excl Vat) in London) per night is suggested as a guideline. Expenditure in excess of this figure must be approved by an officer.

Payments determined under the above paragraph will cover a continuous period of absence of twenty four hours.

(c) The rates specified above shall be reduced by an appropriate amount in respect of any meal provided free of charge by an Authority or body during the period to which the allowance relates.

(d) When main meals are taken on trains during a period for which there is an entitlement to day subsistence, the cost of the meals (incl VAT) may be reimbursed in full. However, reimbursement for the cost of any meals would replace any entitlement to the day subsistence allowance for the relevant meal period.

(e) Subsistence rates will increase annually in line with the approved increase for the basic allowance payable to members.

Where the member wants the allowance to be included in the payment of that month's basic allowances, claims must be delivered to the Council by the seventh day of that month. Claims must be made within one month of the date on which the expenditure was incurred. Claims submitted out of time will require specific approval from the Head of Finance.

7. PENSIONS

Subject to any restrictions prescribed by Regulations, all members of the authority shall be entitled to pensions in accordance with a Scheme made under section 7 of the Superannuation Act 1972 (as amended).

Basic allowances and special responsibility allowances shall be treated as amounts in respect of which pensions are payable.

8. DECISION NOT TO CLAIM

Any Member can give notice in writing to the Head of Finance giving up any part of his/her allowances under this Part.

SCHEDULE 1

Dependant Carers' allowances and travel/subsistence allowances will be paid for:-

• Attendance at meetings of the full Council;
• Attendance at a meeting of any committee, sub-committee, panel, sub group or working party of the Council provided that the member is a member of the committee, sub-committee, panel, sub group or working party;
• Attendance at a meeting of the Cabinet or a meeting of any of its committees; or any meeting for the purpose of or in connection with the discharge of the functions of the Cabinet provided that the member is a member of the Cabinet.
• Attendance, as the Council's representative, at a meeting of a body to which that member has been appointed by the Council or Cabinet, or of any committee or sub-committee of such a body;
• Attendance at any meeting, seminar, demonstration or training session provided that attendance has been authorised by (i) a political group leader and (ii) a Head of Service or his/her nominated representative.
• Attendance at any other meeting approved or organised by the Council, or a committee or sub-committee of the Council, or a joint committee of the Council and one or more local authorities within the meaning of section 270(1) of the Local Government Act 1972, or a sub-committee of such a joint committee provided that attendance has been authorised by (i) a political group leader and (ii) the Head of Service or his/her nominated representative.
• Attendance at a meeting of any association of authorities, or any committee or sub-committee of such an association, of which the Council is a member;
• Attendance for the opening of tender documents in accordance with Contract Procedure Rules.

PART B - OTHER ALLOWANCES

In addition to the allowances payable under Part A above, the Council also pays the following allowances for the period 1 April 2008 to 31 March 2009:

1. Chairman and Vice-Chairman of the Council

The Council pays the following allowances to the Chairman and Vice-Chairman of the Council under sections 2 and 3 of the Local Government Act 1972 to enable them to meet the expenses of office:

Chairman	£3,972.00
Vice-Chairman	£1,986.00

(Where the Chairman or Vice-Chairman is elected part way through a year, or ceases to be Chairman or Vice-Chairman part way through a year, an appropriate proportion of the sum is paid.)

2. Non-members of the Council

The Council pays the following allowances to non-members of the Council who serve on the Remuneration Panel. The payments are made under the Local Authorities (Members' Allowances) (England) Regulations 2003:

Each member of the Remuneration Panel

£518.50 plus travel and subsistence expenses

(Where a non-member becomes a member of the Remuneration Panel part way through a year, or ceases to be a member of the Panel part way through a year, an appropriate proportion of the relevant sum is paid.)