Review of the Scheme of Member's Allowances

Report: 6c
Date: 6 October 2008
By: the Chief Executive

Summary

The Police and Justice Act 2006 and subsequent Regulations have enabled the Authority for the first time to pay an allowance to Assembly Members appointed to the MPA. This together with proposed changes to the Authority’s committee structure and member responsibilities has led to the need to review the MPA’s Scheme of Members’ Allowances.

A. Recommendation

That

1. the Authority approves the changes to the Scheme of Members’ Allowances proposed in this report and therefore the Scheme attached as Appendix 2; and

2. this Scheme be effective from 10 October 2008 or from such date as the Scheme is published on the MPA’s website, whichever is the later.

B. Supporting information

Legal background

1. The MPA was created by the Greater London Authority Act 1999. Schedule 26 of that Act dealt with MPA membership, including the MPA’s ability to pay allowances to its members. However, the Act stated that allowances could not be paid to MPA members who were also members of the London Assembly.

2. Recent legislation has changed the position in respect of the MPA and the other functional bodies. The Greater London Authority Act 2007 enabled the payment of allowances to any Assembly member appointments to the positions of Chairman and Vice Chairman of the London Development Agency, Transport for London and the London Fire and Emergency Planning Authority.

4. The enabling Act in respect of the Metropolitan Police Authority is the Police and Justice Act 2006. The detailed provisions were introduced by Regulation – the Metropolitan Police Authority Regulations 2008 – the provision relating to the payment of allowances came into force on 1 October 2008 - attached as Appendix 1. The MPA is in a different position from the other functional bodies in that legally it can now pay an allowance to all assembly members on the MPA, not just those appointed as Chairman or Vice Chairman. The MPA allowances scheme was last reviewed in 2005 and there are several connected issues which make a review of the MPA allowances scheme timely as the MPA starts a new term of office.

Reasons for review

5. The role of the MPA’s Chairman is a significant one in terms of the time commitment, the complexity of the issues that have to be dealt with and the public profile. The current scheme provides for a Chairman’s allowance of £38,000 where that position is held by an independent member. Whilst there are comparisons to be drawn with other police authorities, more direct comparators are probably London or national organisations such as Transport for London, the London Development Agency or, in the policing field, the National Policing Improvement Agency where the remuneration levels perhaps better reflect the demands of the role in a London / national context. As set out below, it is therefore proposed to increase this allowance.

6. Account also needs to be taken of the fact that the Mayor of London now chairs the MPA. It is not proposed to pay an allowance to the Mayor. However, it is understood that, because of the wide span of his responsibilities as Mayor, he will delegate significant aspects of the MPA Chairman’s role to the Vice-Chairman. These responsibilities are likely to include:

• Leadership in the development and implementation of the MPA’s strategic direction and policies for the MPS and policing in London, taking account of Mayoral policies and priorities and Government requirements
• Dealing with the day to day issues that are part of the Chairman’s role
• At the strategic member level, ensuring that the Authority’s business is managed effectively and corporately
• Regular strategic meetings with the Commissioner and maintaining the tripartite arrangement with the Home Secretary and the Commissioner
• Representing the Authority to outside organisations and the media

It is proposed therefore that the scheme should provide for this allowance to be paid to the Chairman or, where the Mayor is Chairman, to his appointed Vice-Chairman.

7. It has been a feature of the MPA since its inception in 2000 that, apart from its Chairman and some other positions, most of the leading roles have been held by independent or magistrate members. Assembly members have served the Authority well, but the Authority may feel that a more balanced contribution from both categories of membership could only be an improvement as the MPA goes forward in a climate where there is increasing focus on the democratic accountability for and of policing. It has to be recognised that whilst assembly members are paid to be assembly members, those who serve on the MPA have accepted an additional commitment. It is proposed that, now the MPA can legally do so, it should pay an allowance to its assembly membership.

8. It is proposed that the MPA should develop minimum expectations for its membership, both independent and assembly members – for instance that members should serve on at least one main committee and one sub-committee in addition to other member responsibilities. Linked to this is the intention to develop a process of member assessment with the aim of ensuring that members’ expertise and experience is used to best effect and that members are contributing productively to the work of the MPA. Clearly it is more reasonable to place those expectations on members where their contribution is recognised by the payment of an allowance.

9. Proposals to change the MPA’s committee structure are elsewhere on the agenda for this meeting. As part of these proposals committees will deal with the majority of the MPA’s business, supported as necessary by sub-committees for key areas of activity or responsibility. Recognising that the chairmen of these committees will carry an increased span and level of responsibility there needs to be a differential between the special responsibility allowance (SRA) paid for those committees and that paid for sub-committees. This is reflected in the proposals below.

10. The MPA’s Standards Committee includes two external independent members (by law 25% of the committee must comprise such members). These are people who have been appointed following public recruitment to sit only on the Standards Committee - they bring an independent perspective to the committee’s role of upholding the high standards of ethical conduct expected of members of a public authority.

11. In May this year standards committees became responsible for the local assessment and determination of all complaints made against members of their authority. Prior to May this had been done by the Standards Board for England with only the more minor complaints then referred to local standards committees for determination. Additionally, since May standards committees and the three sub-committees they must set up to assess, review and determine complaints must be chaired by one of those independent members. It is considered that the current attendance allowance paid to those independent members does not reflect this increased level of responsibility and commitment and an increase is therefore proposed. The proposed annual payment is the same as that paid by the London Fire and Emergency Planning Authority (LFEPA) and it is understood that the Greater London Authority are considering adopting this level of allowance. LFEPA arrived at this allowance following advice from the Independent Panel of London Councils and a further independent review of allowances.

12. Final proposals relate to the membership of the Independent Member Selection Panel, which is the first stage of the independent member recruitment process. This panel comprises representatives of the MPA (2), the Mayor and the Home Secretary, together with an independent assessor. It is proposed to bring the MPA’s level of remuneration into line with that proposed by the Association of Police Authorities’ independent panel on remuneration – see Appendix 3. This payment would apply to all members of the panel, including the MPA’s representatives.

Proposals

13. In the light of the above the following changes to the scheme of allowances are proposed:

Table 1: Proposed changes to the Members Scheme of Allowances

Appendix 2 shows these proposed changes in the Scheme of Members’ Allowances.

Independent consideration of these proposals

14. Earlier this year the Association of Police Authorities (APA) commissioned an independent panel to look at the levels of member remuneration that could be recommended to police authorities in general, as well as for APA office holders. The MPA has taken the opportunity to ask this panel to look at the MPA’s proposed scheme with a view to ensuring that there is a valid rationale based on national and London-specific comparators. The panel’s report is attached as Appendix 3.

Operative date

15. The Authority cannot make any payments under its scheme of allowances except in accordance with “arrangements published by the MPA not more than twelve months before the making of the payment.” It may also revise any arrangements “but no revisions shall take effect until published by the Metropolitan Police Authority.” It is therefore recommended that, if these changes to the Scheme are agreed, they are payable from 10 October 2008 to enable the scheme to be published on the MPA’s website.

C. Race and equality impact

There are no specific implications.

D. Financial implications

The cost of these proposals could be as follows (depending on who is appointed to what positions and how many sub-committees are required):

Table 2: Cost of the proposed review of Member's Allowances

In addition provision must be made for national insurance, which brings the total additional full year costs to £209,000. Provision has been made for this in the draft 2009/10 budget submission and the part year costs in the current financial year can be met from anticipated underspends elsewhere in the budget.

E. Legal Implications

There is a specific dispensation in the statutory Code of Conduct to enable police authority members (like local authority councillors) to discuss and vote upon the level of their remuneration. This does not, therefore, represent a prejudicial interest.

F. Background papers

None

G. Contact details

Report author(s): Simon Vile, Head of Corporate Secretariat

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Appendix 1

“Allowances
27. - 1. Subject to paragraphs (2) to (4), the Metropolitan Police Authority may make to its chairman, vice-chairman and other members such payments by way of reimbursement of expenses and allowances as the Metropolitan Police Authority may determine.
2. No payment shall be made under this paragraph except in accordance with arrangements published by the Metropolitan Police Authority not more than twelve months before the making of the payment.
3. The Metropolitan Police Authority may from time to time revise any arrangements made for the purposes of this paragraph; but no revisions shall take effect until published by the Metropolitan Police Authority.
4. Payments made under this paragraph may differ according to whether the recipient is the chairman, a vice-chairman or other member or is appointed under regulation 6 or 7.”

Appendix 2

Scheme for the payment of Members’ Allowances – 2008/09

General

1. This scheme is made in accordance with the provisions of Section 107 of the Criminal Justice and Police Act 2001 and was adopted by the Metropolitan Police Authority (MPA) on 6 October 2008 and came into effect on 10 October 2008. It will be reviewed at least annually.

2. In this scheme, ‘member’ means a member of the Metropolitan Police Authority appointed by virtue of the Greater London Authority Act 1999.

3. Any amendments to this scheme require the approval of the Authority unless the changes are consequential alterations of amounts or rights enacted by Home Office Circular or an automatic annual uprating of allowance levels in line with the Police Support Staff Council cost of living increases. In these cases the Chief Executive is authorised to approve the changes.

Allowances

4. With effect from 10 October 2008, the following allowances are payable in the financial year 2008/09:

Table 3: Allowances payable from 10 October 2008 in the financial year 2008/09

5. These annual allowances will be paid monthly in equal installments direct into the members’ bank accounts. The payment of any allowance will cease immediately upon any member ceasing to be a member of the MPA or ceasing to hold a position that attracts an SRA. Allowances will be paid on a pro-rata basis up to the date when membership ceases or a member no longer holds a position that attracts an SRA.

6. If a member falls into more than one band of SRA only one allowance will be paid and the higher of the two rates of payment will apply.

Other allowances

7. The following allowances are also payable:

External members of the Standards Committee

All police authorities are required to appoint people who are independent of the authority to serve on their Standards Committee. The Chairman of the Standards Committee must be one of these members. These members are entitled to an annual allowance of £1,176 for the Chairman and £558 for other independent members.

Selection Panel members

Each police authority has a Selection Panel which is responsible for the first stage in the process of selecting independent members to serve on the authority. These members (including the MPA’s representatives on the Panel) are entitled to an allowance of £200 (£100 per half day). The hourly rate for preparation and reading is £28.

Police Appeals Tribunals

Members of the Authority who are appointed to Police Appeals Tribunals shall be paid at the same daily rate as set by the Home Office for other tribunal members – currently £215 per day or £107 per half day. An hourly rate of £15 is payable for reading or preparatory work.

Choosing not to claim

8. The MPA’s scheme reflects the conclusions and recommendations of an Independent Panel commissioned by the Association of Police Authorities. This Panel based their recommendations for the MPA on an estimate of the time commitment that is required to fulfil a member’s responsibilities. For an MPA member they estimated a commitment of up to the equivalent of two days per week and for members entitled to an SRA up to 2.5 days per week.

9. Any member may choose not to claim all or part of their allowance if they feel that they are not in a position to fulfil the full range of duties expected of their position, or for any other reason. Such a decision should be notified by the member in writing to the Chief Executive of the MPA.

Index linking

10. The allowances referred to in this scheme are indexed to the Police Support Staff Council cost of living increases and will be automatically uprated each year in line with this.In the financial year 2008/09 the PSSC increase applied was 2.5% with effect from 1 April 2008.

Payment of the allowance when a member is unable to carry out his or her duties

11. Situations may occur which mean that a member is unable to carry out his or her duties for a period of time. Set out below are three such situations and the position in terms of the payment of the member’s allowance:

• Absence for a lengthy period due to sickness: under the Greater London Authority Act 1999, a member can be removed by the Authority if he or she fails to attend meetings for more than three consecutive months, without the Authority’s consent; or if the Authority is satisfied that the member is incapacitated by physical or mental illness. In the case of long-term sickness the allowance will continue to be paid until such time as the Authority decides to withdraw membership.
• Maternity and paternity arrangements: where a member is unable fully to carry out their duties for a short period due to the arrival of a new child (including an adopted child) the allowance will continue to be paid for a period of three months.
•  Suspension: where a member has been suspended following a breach of the Authority’s code of conduct, the member will not receive any allowances during the period of suspension. However, if the member is subsequently exonerated the member should be paid the allowances that he or she would have received during the period of suspension.

Any questions about this scheme should be addressed to:
Jenny Trevillion
Head of Member Services
Metropolitan Police Authority
10 Dean Farrar Street
London SW1h 0NY

Telephone: 020 7202 0184
Email: jenny.trevillion@mpa.gov.uk

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