Members' allowances scheme

Report: 13
Date: 8 March 2001
By: Treasurer

Summary

This report recommends increases in the ceiling for Members' allowances following approval from the Home Office to the Authority to determine these.

A. Recommendations

1. Members agree to an increase in the ceiling for Members' Allowances in the current financial year from £7,500 to £10,000.
2. Members agree to an increase in the ceiling for Members' Allowances in the financial year 2001/02 to £15,000 and to an increase in the ceiling for the Chair of the Authority to £22,500.

B. Supporting information

1. Following an approach from the Chair of the Authority to the Home Secretary, the Home Office has agreed to waive the current ceiling on allowances paid to independent and magistrate Members of this Authority. They have stipulated that 'a revised MPA allowance scheme, and any ceilings that the Authority may determine, are made available to the public, and that any additional costs are contained within existing budgetary provision.' This decision recognises the workload generated for the Authority in fulfilling its role in relation to a force of the size and complexity of the MPS.

2. One Member had reached the current ceiling of £7,500 by January. A number of other Members are close to that ceiling on the basis of claims received to January. It is therefore proposed that the ceiling in the current year be increased to £10,000. to reflect the workload. The additional costs that relate to this increase in the ceiling can be managed within the existing budget of £2.51m (which includes £50,000 from the reserve to offset set up costs included in the Authority's balance sheet). The increase in the ceiling does not affect the rules applying to Members in making claims for Members' allowance.

3. The budget for the MPA Support Organisation in 2001/02 includes a provision to increase the ceiling for Members' Allowances to £15,000 and the ceiling for the Chair of the Authority to £22,500. As with the other allowances the Chair's allowance is not payable to a member of the Greater London Assembly. The recommendations for 2001/02, as set out above, therefore reflect the budget provision made in anticipation of approval from the Home Office.

4. This should be seen as an interim arrangement to address the immediate issues. If and when Members' allowances are deregulated, there will be Association of Police Authorities guidance which the MPA will want to consider in reviewing its scheme. For instance, there may be a case for differential payments for the Deputy Chairs of the Authority. The Authority may also wish to consider more fundamental changes, such as replacing attendance allowances with flat rate payments. Any such proposals will be brought back to the Authority.

C. Financial implications

The recommended increase in the ceiling for Members' Allowances in the current financial year can be managed within the existing overall budget. The increased ceilings for 2001/02 have already been provided for in the 2001/02 budget.

D. Background papers

• Letter from the Home Office dated 19 February 2001.

E. Contact details

The author of this report is Colin Balkman, MPA.

For information contact:

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

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