Review of members’ allowance scheme

Report: 8
Date: 14 December 2000
By: Clerk

Summary

This report marks the first stage in a wider process of evaluating the Members’ Allowance Scheme that applies to the MPA. It draws attention to some of the shortcomings of the current Home Office regulated scheme and suggests that the MPA requires a more flexible model that better reflects the contribution of independent and magistrate members of the MPA.

A. Supporting information

MPA responsibilities

1. The Metropolitan Police Service (MPS) is the largest and most complex police service in England and Wales. It has the highest public profile and is the only police force in England and Wales with a remit that includes national and international policing duties. The sheer scale and diversity of the population in London, combined with the level of policing required by the nation’s capital, generates an enormous workload for the MPA.

2. The main functions of the MPA are: to secure an efficient and effective police service for London; to set priorities and produce the policing plan; to monitor the MPS’ performance against that plan; to deliver best value and to ensure that both the Authority and MPS engage fully and effectively with London’s communities. The MPA has 23 Members, who are supported by a staff of 39 officers. Of the 23 Members, 12 are members of the Greater London Authority (GLA), seven are independent members and the remaining four are magistrates. Members are expected to be involved in all aspects of Authority business. This involves attendance at a range of meetings and events including:

• committee meetings (six committees meet each month);
• workshops;
• sub-groups;
• visits to MPS units;
• MPS management/working groups;
• GLA and other London wide bodies;
• dealings with the media; and
• engagements with community and local partners (particularly in member link areas)

Members’ allowances

3. Members of the Authority are entitled to claim allowances and reimbursement for their duties as members of the Authority. Magistrates and independent members can claim attendance allowance to a maximum of £7,500 in any financial year as set out in the Home Office Circular dated 18th September 2000 (see Appendix 1). The Chair of the Authority, if a magistrate or independent, is limited to a maximum ceiling of £11,250 in any financial year. Under the Greater London Authority Act 1999, Assembly members are disbarred from claiming attendance allowance. However, all members may claim travel and subsistence expenses.

4. This paper examines whether the Members’ Allowance Scheme available to independent and magistrate members adequately compensates for the time and expenditure that they invest on Authority business.

5. The formal Metropolitan Police Authority Members’ Allowance Scheme took effect from June 2000. However, the scheme failed to compensate members adequately for their time and expenses incurred on Authority business. The scheme was amended at a subsequent Chairs’ Co-ordination and Urgency Committee on 31st August. (see Appendix 2):

6. In order to establish patterns of expenditure and likely pressures against the scheme, independent and magistrate members have been asked to submit all existing claims. Those members who do not plan to submit claims have also been asked to estimate their costs. Not all the eligible members have yet responded but an initial analysis shows that if the monthly spending patterns continue at the same rate, at least three members are likely to exceed the upper ceiling by around £2000. These figures do not take account of reduced MPA responsibilities over the summer period and may therefore be conservative in their projections.

Inadequacies of the current scheme

7. A number of inadequacies within the current scheme have been identified:

• the ongoing analysis of claims shows that a significant proportion of members will exceed the annual ceiling;
• based on current predictions, some members will spend approximately 100 working days a year on Authority business. This is an extensive workload and, for some, will have a significant impact on existing and future employment. There is the risk that some members will not have the means to sustain this level of commitment. This will reduce the effectiveness of the Authority;
• that the maximum allowance of seven hours a month reading time does not adequately reflect the actual amount of reading time required by members;
• the provision of one standardised Members’ Allowance Scheme for all police authorities in England and Wales fails to account for the higher travelling and subsistence costs of working in London;
• the MPA is the Authority for the largest and most complex police service in England and Wales and, in proportionate terms, this requires more work by members than the rigid national allowance scheme facilitates.

Deregulation

8. Following pressure from the Association of Police Authorities (APA) the Government has indicated that when a legislative opportunity presents it will deregulate the members’ allowance scheme. This will allow all authorities to determine the best fit for allowances given its own circumstances. The APA is likely to consult on a model framework which authorities may wish to adopt, or adapt to local requirements. But legislation is not necessarily imminent.

9. An increase in - or better still the removal of - the ceiling might be accomplished without legislation and might be a step members would wish the Home Office to consider in the spirit of deregulation.

Next steps

10. All independent and magistrate members are encouraged to provide a full up to date record to officers of all activities against which they can make a legitimate claim covering the period up to Christmas. An assessment of the financial implications of the options for change will also need to be undertaken. Officers will then produce a formal case for submission to the Home Office for a revised scheme to compensate independent and magistrate members, which will meet the particular requirements of the MPA.

B. Recommendations

1. That members note the findings of this report and agree the limitations of the existing scheme as set out in paragraph 7.
2. That members agree that, once the figures up to Christmas have been provided, a case be made to the Home Office for increasing the hourly rate and/or removing the ceiling on allowances in anticipation of deregulation
3. That the full Authority meeting in January should consider the financial implications of proposed changes and approve the terms of the submission to the Home Office.

C. Financial implications

If the amount payable to members were to be increased there would be clear financial implications. These will need to be spelt out in consideration of any options for change before submitting a case to the Home Secretary.

D. Review arrangements

That members work with MPA officers to build a better picture of the time and expenses taken by MPA business, and that the findings of this review are reported back to the next full Authority meeting.

E. Background papers

The following is a statutory list of background papers (under the Local Government Act 1972 S.100 D) which disclose facts or matters on which the report is based and which have been relied on to a material extent in preparing this report. They are available on request to either the contact officer listed above or to the Clerk to the Police Authority at the address indicated on the agenda.

• Previous MPA reports on members’ allowances.
• Home Office Circular dated 18th September 2000

F. Contact details

The author of this report is Max Edelstyn.

For information contact:

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

Appendix 1: HOC 37/2000 18 September 2000

This circular is about:

Police Authorities: Home Secretary’s scheme for re-imbursement of expenses and allowances to members

From:

Performance and Strategic Management Unit
Policing and Crime Reduction Group

Expiry date:

None

This cancels:

HOC 8/2000

Date for implementation:

1 October 2000

For more information contact:

Joanne Harrison
PSMU, Policing and Crime
Reduction Group
Room 618
50 Queen Anne’s Gate
London SW1H 9AT
tel: 020 7273 4509
fax: 020 7273 3015

This circular is addressed to:

Clerks to Police Authorities

Copies are being sent to:

Chairmen of Police Authorities
Clerks of Magistrates’ Courts Committees

Dear Colleague,

1. Introduction

1.1 The current allowances scheme for members of police authorities outside London is provided for by paragraph 25 of Schedule 2 to the Police Act 1996. Provision for the Metropolitan Police Authority (MPA) is set out in paragraph 20 of Schedule 2A to the 1996 Act as inserted by Schedule 26 to the Greater London Authority Act 1999. The scheme provides that police authorities may make to their chairmen and other members payments by way of reimbursement of expenses and allowances as the Secretary of State may determine with the approval of the Treasury.

1.2 This circular describes the scheme and sets out the level of payments which the Home Secretary has determined may be made with effect from 1 October 2000. It supersedes all previous circulars issued about the scheme. The only changes in the level of payments since the last circular (HOC 8/2000) are to the travel allowances, the night subsistence allowance and the day subsistence allowance (see sections 2, 3 and 4). The rates for all other allowances remain the same (see sections 5, 6, 7 and 8).

2. Travel allowances

2.1 Members may be reimbursed for reasonable and necessary travelling expenses by public transport, including the cost of taxi fares where appropriate, in order to undertake police authority business. If travelling by rail, members are entitled to travel first class.

2.2 The rates for travel by a member's own motor car and motor cycle are as follows:

1. for the use of a motor vehicle of cylinder capacity up to and including 1,100 cubic centimetres, 29.89 pence (previously 27.4) per mile;
2. for the use of a motor vehicle of cylinder capacity of 1,101 cubic centimetres to 1,400 cubic centimetres inclusive, 38.82 pence (previously 36.8) per mile;
3. for the use of a motor vehicle of cylinder capacity exceeding 1,401 cubic centimetres, 48.43 pence (previously 44.7) per mile.

2.3 The rates set out in paragraph 2.2 above shall apply to the first 5,000 miles claimed by a member in the financial year (for 2000/01, miles claimed up to 30/09/00 under HOC 8/2000 will count towards the 5,000 miles). Thereafter a standard rate of 25.6 pence (previously 23.6) per mile will be paid.

2.4 If a passenger is carried on any journey an additional 1.0 pence per mile will be paid in respect of each passenger up to a maximum of 4.

2.5 Bicycle allowance will be paid at 6.9 pence per mile.

3. Night subsistence allowance

3.1 The rate of night subsistence allowance payable shall be, in the case of an absence overnight from the usual place of residence, £79.82 (previously £77.43), or for such an absence overnight in the Greater London area, £91.04 (previously £88.31). This allowance shall be deemed to cover a continuous period of absence of 24 hours.

4. Day subsistence allowance

4.1 The rate of day subsistence allowance in the case of an absence from the usual place of residence shall now be:

1. of more than 4 but not more than 8 hours: £6.77 (previously £6.57)
2. of more than 8 but not more than 12 hours: £9.44 (previously £9.16)
3. of more than 12 hours: £17.82 (previously £17.29)

5. Meals on trains

5.1 When main meals (ie a full breakfast, lunch or dinner) are taken on trains during a period for which there is entitlement to day subsistence, the reasonable cost of meals (including VAT), may be reimbursed in full, within the limits specified in paragraph 5.2 below. Where the cost of meals taken on trains is reimbursed, the rate of day subsistence allowance for that period of duty shall not exceed the maximum payable if the period of absence from the usual place of residence were reduced by 4 hours in respect of each meal taken.

5.2 The limitations of reimbursement are:

1. absence of more than 4 hours but not more than 8 hours, the cost of 1 main meal;
2. absence of more than 8 hours but not more than 12 hours, the cost of 2 main meals;
3. absence of more than 12 hours, the cost of 3 main meals.

6. Members' attendance allowance

6.1 Members may claim an allowance of £17 for each complete hour spent on police authority business, with no maximum daily allowance. No member may claim more than £7,500 under this paragraph in any financial year, subject to the exception set out in paragraph 7.1 below.

7. Chairman's attendance allowance

7.1 The Chairman of the authority may claim the Members’ Attendance Allowance as set out at paragraph 6.1 above, however the maximum amount which the Chairman may claim in any financial year is £11,250.

8. Conference rate

8.1 Section 175 of the Local Government Act 1972 (allowances for attending conferences and meetings) applies to members of police authorities attending conferences or meetings convened by police authorities, or by the Association of Police Authorities.

8.2 The maximum rate of allowance payable for any 24 hour period in respect of attendance at such conferences or meetings as a result of The Local Authorities (Members’ Allowances) (Amendment) Regulations 2000 is £30.39. Although this limit does not arise out of the Home Secretary’s scheme, any queries about it should be addressed to the contact point on the front of this circular.

Yours faithfully

Richard Kornicki
Head of Performance and Strategic Management Unit

Appendix 2: Metropolitan Police Authority Members' Allowance Scheme

1. The Metropolitan Police Authority, in exercise of the powers conferred by the Greater London Authority Act 1999, hereby makes the following scheme:

General

2. This scheme may be cited as the Metropolitan Police Authority Members' Allowance Scheme and shall take effect from June 2000 for members of the new Police Authority.

Definitions

3. In this scheme, ‘member’ means a Metropolitan Police Authority member appointed by virtue of the Greater London Authority Act 1999. ‘Financial Year’ means the twelve months ending 31 March.

Qualification

4. Under the Greater London Authority Act 1999, Assembly members are disbarred from claiming attendance allowance. However, they can claim travel and subsistence expenses. It should be noted that Independent and Magistrate members, can claim both attendance allowance and travel and subsistence.

Creation and amendment of the scheme

5. Future amendments require the approval of the Authority unless the changes are consequential alterations of amounts or rights enacted by Home Office Circular. In the latter case, the Clerk is authorised to make the changes.

Approved duties

6. Members' Allowance and travel and subsistence expenses will be payable for the following approved duties:

1. Attendance at a meeting of the Authority.
2. Attendance at a meeting of any Committee or Sub-Committee of the Authority where the claimant is a member of that body.
3. Attendance at a meeting of any working party or other meeting authorised by the Authority or a Committee or Sub-Committee of the Authority where the claimant is a member of that body.
4. Attendance at a meeting of bodies of which the Authority is a member and to which they have been appointed by the Authority or a Committee or Sub-Committee of the Authority to represent the Police Authority. (This includes Crime and Disorder Partnerships.)
5. Attendance at meetings of other bodies or authorities to which the member has been appointed by the Authority or a Committee or Sub-Committee of the Authority to represent the Police Authority.
6. Attendance at any launch, training or briefing event provided by the Authority
7. Attendance at an external conference or training event which has been authorised by the Authority
8. Attendance at meetings undertaken on behalf of the MPA in relation to geographical link duties, such as PCCG meetings, discussions with crime and disorder partners, visits to local BOCU’s and other relevant local constituency meetings;
9. Informal briefing and familiarisation sessions relating to MPA responsibilities ie C3i, at the invitation of the MPS ;and
10. Reading time (up to a maximum of 7 hours per month)

7. It is proposed that only travel and subsistence expenses be paid to members attending meetings of the Authority of which they are not an appointed member.

8. All other claims are payable only in respect of an "approved duty". Approval by the Police Authority or any of its Committees or Sub-Committees of any duty, other than those listed above, should normally precede performance of the duty.

9. Where this is not possible or appropriate, or in cases of urgency, the Clerk to the Authority may determine, after consultation with the Chair of the Authority, whether it is an approved duty for the purposes of the payment of Members' allowance.

10. Where the Clerk invites a member to undertake duties which clearly relate to their role as a member of the Police Authority, that shall be deemed an approved duty.

Conference allowances

11. Where attendance at a national or regional seminar, training event or meeting is declared an approved duty for attendance allowance, the Home Office scheme of members’ allowance does not apply if the event is organised by more than one Police Authority or by the APA. In such cases, Section 175 of the Local Government and Housing Act 1972 applies and the Department of Environment, Transport and the Regions rate of £30.39 can be claimed for any 24 hour period.

Payment of members’ allowances expenses

12. The scales for the payment of Members' Allowance are specified in the Schedule. They are the maxima prescribed by the Home Office and there is no obligation on a member to claim any, or all, of the allowance.

13. Attendance allowance may be claimed for reasonable travelling time incurred.

Payment of travel and subsistence

14. Members may be reimbursed for reasonable and necessary travelling expenses by public transport, including the cost of taxi fares where appropriate, in respect of approved duties. If travelling by rail, members are entitled to travel first class.

15. Travel and subsistence expenses in respect of other duties undertaken by Police Authority members will require the prior approval of the Authority.

16. The rates payable for travel and subsistence expenses are specified in the Schedule.

Claims for the payment of allowances and expenses

17. A claim for payment of allowances and expenses under this scheme shall be made in writing on the prescribed form within one month of the date of the meeting or other approved duty in respect of which the entitlement arises.

18. Payment will be made directly into members’ bank accounts and will have tax and National Insurance deducted at source.

Schedule
Scheme of allowances - financial limits

Members' allowance

Members (excluding Assembly members) may claim an allowance of:

• £17 for each complete hour spent on police authority business.
• No member may claim attendance allowance of more than £7,500 in any financial year except the Chair of the Authority who may claim £11,250 in any financial year.

No entitlement to allowances

The law prevents the payment of allowances for Member Surgeries and political activities. Social functions associated with the Police Authority will not attract the payment of attendance allowance or travel and subsistence expenses

No attendance allowances can be claimed for voluntary attendance at meetings of which the claimant is not a member. Travel and subsistence expenses only will be paid in such cases.

Travel Allowances

• The rates for travel by a member's own motor car or motor cycle are as follows for the use of a motor vehicle of cylinder capacity:

  Capacity	Rate (Pence Per Mile)
  Not exceeding 1100cc	27.4
  1101 - 1400cc	36.8
  Exceeding 1401cc	44.7

• The rates set out above shall apply to the first 5,000 miles claimed by a member in the financial year. Thereafter, a standard rate of 23.6 pence per mile will be paid.
• If a passenger is carried on any journey, an additional 1.0 pence per mile will be paid in respect of each passenger up to a maximum of 4.
• Bicycle allowance will be paid at 6.9 pence per mile.

Overnight absence

In cases where an approved duty involves an overnight stay, the Clerk will book and pay for accommodation in almost all circumstances and the costs will be regarded as part of the conference expenses. Where a member decides to book accommodation direct the maximum rate that can be reimbursed is £77.43 apart from in the Greater London area where the limit is £88.31.

Day subsistence allowance

• The rate of day subsistence allowance in the case of an absence from the usual place of residence shall be:
  • of more than 4 but not more than 8 hours: £6.57
  • of more than 8 but not more than 12 hours: £9.16
  • of more than 12 hours: £17.29
• Subsistence allowances are not payable for meetings where lunch or other meals have been provided by the Authority.

Meals on trains

When main meals (i.e. a full breakfast, lunch or dinner) are taken on trains during a period for which there is entitlement to day subsistence, the reasonable cost of meals (including VAT), may be reimbursed in full, within the limits specified below. Where the cost of meals taken on trains is reimbursed, the rate of day subsistence allowance for that period of duty shall not exceed the maximum payable if the period of absence from the usual place of residence were reduced by 4 hours in respect of each meal taken.

The limitations of reimbursement are:

• absence of more than 4 hours but not more than 8 hours: the cost of 1 main meal,
• absence of more than 8 hours but not more than 12 hours: the cost of 2 main meals;
• absence of more than 12 hours: the cost of 3 main meals

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