Plans to raise Croydon councillors’ yearly allowance by 2.5 per cent have been unveiled, marking the first increase in several years. The proposal, which could be approved at the upcoming council meeting, will increase the rate to meet inflation and the growing pressures of the job.
If approved, the changes would see a 2.5 per cent increase in both the basic allowances and special responsibility allowances (SRA) which are afforded to elected councillors in recognition of their roles. The changes would also see certain councillor positions gain higher paid SRA allowances for the first time.
In the UK, a local councillor’s basic allowance is designed to compensate them for the time and work involved in their duties as elected representatives, as well as any expenses incurred. SRAs are for councillors who have extra responsibilities like Cabinet Members and the Council Leader or Mayor, depending which system a council operates.
Croydon’s Mayor Jason Perry has been paid £81,000 per year since his election in 2022
(Image: Harrison Galliven/LDRS)
Croydon currently provides a basic allowance of £11,692 to its councillors. In addition to the basic allowances, Cabinet Members get £27,503, and Shadow Cabinet Members get an extra £5,615.
The basic allowance has not changed since 2019/20. In a report published on Tuesday (January 7), the council said: “For several years, including at Budget Council March 2024, it has not agreed any recommended uplift.”
However, if the proposals are approved, this figure will soon rise by £292.30 a year to £11,984.30 while SRAs for Cabinet Members would rise to £28,190 and for Shadow Cabinet Members to £5,755. It means Cabinet Members would get a total of £40,174 when combining the basic allowance and SRA.
Croydon Council initially planned against the uplift during its budget meeting last March. However, a recent report from the Independent Panel on the Remuneration of Councillors, who focus on how much elected local officials should be paid, highlighted a ‘growing concern’ that allowances across the capital are significantly lower than the pay received by workers in London who hold similar levels of responsibility and skills.
It felt this disparity in remuneration came at a time when councillors were facing rising workloads, increased time pressures, greater accountability, and growing financial challenges in their roles. As a result, Croydon Council decided to propose plans to implement a 2.5% pay rise for basic and SRAs in 2025/26. It will be backdated to April 2024.
In Croydon, SRAs are currently afforded to the Chair, Deputy Chair and Vice-Chair of the Scrutiny & Overview Committee. Under the plans, Croydon also hopes to introduce an SRA for Chairs of a Scrutiny Sub-Committee to acknowledge the time and effort required for the role. If approved, the allowance would be set at £5,629 for the 2025/26 period, assuming the 2.5% pay increase for 2024/25 is agreed.
Current councillors who will benefit from this uplift include Ellily Ponnuthurai, Chair of the Homes Scrutiny Homes Sub-Committee, and Andrew Price, Chair of the Scrutiny Children & Young People Sub-Committee.
While the council has insisted the proposed 2.5% increase for 2024/25 can be met within the existing budget, the recommendations for the basic and SRA allowance increase are estimated to cost Croydon £35,000 more per year.
These increases will be reviewed by the General Purposes Committee next Tuesday (January 14) before a final decision is made at the Council Tax & Budget Council Meeting in spring.
Croydon’s Mayor Jason Perry has been paid £81,000 per year since his election in 2022. Allowances are paid to councillors on the 12th of every month, but individual politicians can opt to surrender their allowances.
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