
Chris Game
You may just possibly have seen the recent report: “Oldham councillors must repay overpaid allowances due to payroll error”. And thought: “Mmm – sounds a bit tough; surely councillors don’t organise their own payments?”
Surely it would be the Council Treasurer’s responsibility, or his/her staff – probably his, given that the senior echelons of the local government treasury profession are around three-quarters male? After all, they’re the ones who ran the faulty allowances system and must have, repeatedly, made the faulty calculations.
You might indeed suppose so, but it’s not what happened here. Those 82 Oldham councillors were, it seems, overpaid a (combined!) total of £104,000 due to a systemic error, or rather errors, repeated apparently over at least three financial years.
The error was acknowledged as an administrative one, by council staff, and the salaries of those responsible are being docked accordingly; in particular the Director of Finance, whose six-figure salary (of, coincidentally, £104,000! No, I’m totally guessing that bit!) could at least bear it. You might suppose?
However, that’s NOT at all how our local government division of responsibilities between elected councillors and salaried officers works. Here the whole £110,000 is having to be repaid by the innocently benefitting councillors – who most certainly don’t get dockable salaries.
So what are actually being ‘docked’ here are the relevant councillors’ basic and ‘Special Responsibility’ allowances, the latter being for those in various leadership positions: cabinet members, chairs of committees, party group leaders, and suchlike.
Oldham is generally a Labour-led council and currently ‘ordinary’ council members receive a Basic Allowance of roughly £12,000. Other Member Allowances include the Council Leader £43,000, Deputy Leader £26,000, Executive Members £22,000, the Mayor £17,000, Chairs of various Scrutiny Boards – Licensing, Planning, Children & Young People, Health & Wellbeing, etc.- £11,000. It’s hardly megabucks.
In short, elected councillors are being made to pay, from their modest responsibility allowances, for ‘administrative errors’ made over several years by the council’s administrators – the clue’s in that adjective!
It seems wrong in principle, and it’s also horribly mistimed, coming as it does when some genuine efforts are being made to increase the perceived attractiveness of the councillor role and thereby extend the range of socio-economic backgrounds from which our local representatives are drawn.
Just a few weeks ago, for instance, at Labour’s party conference, Communities Secretary Steve Reed – a council Leader himself before becoming an MP – announced that he would be restoring councillors’ access to pensions through the Local Government Pension Scheme that the Conservative Government had removed. There is also talk of improving parental leave and reviewing the allowances system.
And not before time. For few in local government seriously doubt the deterrent impact on councillor recruitment of the 2012 removal of pension entitlement by the then Minister for Communities and Local Government, Eric (now Lord) Pickles.
Former Leader of Bradford Council, Pickles knew exactly what he was doing, as he increased councils’ financial discretion, while cutting considerably the funding over which to exercise it, and his patronising ’50 money-saving tips’ were contributing to the dire financial straits so many councils have found themselves in since.
At which point – in the distant past, when I was lecturing regularly and having to produce student ‘handouts’ – I’d probably have referred to a few overseas examples, showing how relatively demanding the English councillor’s role is and how under-compensated our councillors generally are.
First, and most obviously, there’s the potential workload, very crudely illustrated by the average number of electors per councillor: 120 in France, 250 in Sweden, 2,350 in Ireland … and (currently) 2,600 in the UK as a whole.
Then the councillor payment systems: England – a basic allowance of, typically, £10,000 – £12,000 p.a., plus a bit extra for ‘Special Responsibilities’, and (wow!) expenses for travel and childcare.
By comparison, or contrast: the USA – highly variable, obviously, but an average US councillor’s salary is currently around $51,000 (£39,000), rising in New York, where everything’s gross, to $148,000 (£113,000).
Back in the real world, at the other end of the spectrum, are Norway/Sweden, where the councillor role is still generally considered voluntary, with councillors receiving ‘modest’ allowances to cover costs.
They’re quite fun, but these international comparisons/contrasts aren’t terribly helpful in considering the future of English local government. Or necessary, as, on the proverbial doorstep we have sensible Scotland, where, nearly 20 years ago now, they switched from our patronising, cheeseparing ‘allowances’ system to actual councillor salaries – of currently, and precisely, £25,982.
That’s the basic salary. Senior councillors will generally receive a higher salary, up to perhaps around £50,000 for a Council Leader, with councils themselves having the ‘grown-up’ discretion of paying senior councillors up to 75% of the Leader’s pay.
And there’s more. Scottish councillors are eligible to join their Local Government Pension Scheme, to payment of allowances for subsistence and travel, and reimbursement of expenses incurred when undertaking council duties – a regular source of dispute ‘darn Sarf’.
Which brings me to my closing thought. Oldham, where we started, is almost exactly midway between London and Edinburgh, and local authorities in both England and Scotland are financially, in my view, heavily over-dependent on their respective central governments. But, if a student asked me in which country I’d prefer to be an elected councillor, I’d say: “Never mind the temperature, choose the occupational discretion”
This post appeared initially in The Birmingham Post edition of Thursday, December 11th.

Chris Game is an INLOGOV Associate, and Visiting Professor at Kwansei Gakuin University, Osaka, Japan. He is joint-author (with Professor David Wilson) of the successive editions of Local Government in the United Kingdom, and a regular columnist for The Birmingham Post.





