Independent panel recommends increases in allowances for Liverpool Councillors

An independent remuneration panel is recommending that the payments received by Liverpool City Councillors should be increased, after a comparison with other similar cities showed allowances are currently far lower.

The recommendations follow a six month study which has benchmarked the current allowances against other local authorities across the country, as well as taking into account national pay awards received byCouncil staff since 2019, the commitment elected members make in fulfilling their roles, and national Local Government Association (LGA) guidelines.

It found that Liverpool's basic allowance of £10,590 compares with a 'core city' average of £14,946.62, meaning that the city's councillors are presently "significantly under-compensated in comparison to their counterparts".

Since 2018/19, the basic allowance for councillors in Liverpool has risen by 2.2%, whilst the salaries of Council employees have gone up by 17.8%, and the average national salary by 21.2%. Over the same period, inflation has risen by 26.8%.

The Panel has concluded that the demands on Liverpool's Councillors are "significantly greater due to the City's scale and complexity" and that "these factors place additional strain on councillors, requiring more time, expertise and dedication".

If the increase in the basic allowance is approved, it would still remain almost £1,500 below the average received by councillors in the core cities.

The Panel is recommending that:

• The Basic Allowance be increased from £10,590 to £13,500
• The threshold of having 20% of councillors to become the Leader of the Opposition and Whip of the Opposition be removed
• The threshold of having 10% of councillors to be Leader of a Minority Group be replaced with a minimum of four members
• All allowance increases to be in line with the Local Government NJC Pay Award from 2025/26 to 2028/29. Where a flat rate is agreed, the percentage increase to the average council salary be applied to councillor allowances
• An attendance allowance of £100 per meeting be paid to members who sit on Licensing Sub-Committees

Other proposals include:

• The allowance for the Leader of the Council be raised from £42,100 to £47,250
• The allowance for the Deputy Leader of the Council be raised from £16,014 to £23,625
• The allowance for Cabinet members be raised from £13,269 to £20,250
• The allowance for Leader of the Opposition to be increased from £11,341 to £16,875

Chair of the Independent Remuneration Panel, Andy Brown, said: "The allowances paid to councillors do not represent a wage or salary, but need to be reflective of the time and commitment that is needed to be an effective elected member.

"There has been a significant disparity between the growth of councillors' basic allowances and salary trends, which emphasises the need for a more substantial adjustment as it no longer aligns with the economic realities of 2024.

"Raising the basic allowance is critical for ensuring Liverpool remains competitive in attracting and retaining talented individuals to serve as councillors, and making sure the position is not undervalued.

"We believe our recommendations are reasonable and prudent, striking a balance between affordability and adequate compensation for their work."

The report, which lists all of the proposed increases, can be read in full here: https://councillors.liverpool.gov.uk/documents/s307282/Final%20Report.pdf.

The proposals will be considered by the Constitution and Governance Committee on Wednesday 15 January, before a final decision is made by councillors at the City Council meeting on Wednesday 22 January.

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