The Local Authorities (Allowances for Members of County and County Borough Councils and National Park Authorities) (Wales) Regulations 2002

Explanatory Note

(This note is not part of the Regulations)

Section 18 of the Local Government and Housing Act 1989 provides the power for the Secretary of State to authorise or require any relevant authority specified in the Regulations to make a scheme providing for the payment of:

• a basic allowance to councillors; and

• an attendance allowance to councillors; and

• a special responsibility allowance for councillors with special responsibilities.

This power is now vested in the National Assembly for Wales by virtue of the National Assembly for Wales (Transfer of Functions) Order 1999.

Section 100 of the Local Government Act 2000 (“the 2000 Act”) provides for the National Assembly for Wales to make provision by regulations with respect to travelling and subsistence allowances payable to members of such relevant authorities as may be prescribed.

These Regulations require county and county borough councils (whether operating executive arrangements in accordance with the 2000 Act or alternative arrangements in accordance with section 32(1) of the 2000 Act) and National Park Authorities in Wales to make a scheme for the payment of allowances in respect of the current year and subsequent years.

Regulation 3 prescribes county, county borough councils and National Parks as relevant authorities for the purposes of section 100 (1) of the 2000 Act.

Regulation 5 provides that where a scheme, made under these regulations, is revoked an authority must ensure that a further scheme is in place to take effect from the date of any such revocation, whilst Regulation 6 provides that a scheme may be amended or revoked at any time. Where a scheme is amended provision may be made for entitlement to allowances to apply from the beginning of the year in which any amendment is made.

Regulation 7 requires a scheme to contain provisions relating to a “basic allowance” for councillors. Only one “basic allowance” per member shall be payable under a scheme. Regulation 8 gives authorities discretion to make provision for “special responsibility allowances”. The categories, which may be used for the payment of “special allowances” are set out in Regulation 8(1). Such allowances are not payable, by virtue of Regulation 8(2), to more than half the members of an authority (calculated by reference to total seats on the authority). It also allows councils to provide for an additional sum of ten per cent to be paid to a deputy cabinet leader or a vice chair of a board as part of a special responsibility allowance.

Regulation 9 gives discretion to a National Park Authority to provide in a scheme for “attendance allowances” for councillors in respect of “approved duties”.

Regulation 10 provides for a scheme, made by a county or county borough council, to include a “care allowance” for members in respect of expenses of arranging for the care of children (of fifteen or less) or dependants incurred in the carrying out of duties as a member.

Regulation 11 provides that a scheme made under Part II shall provide for any member of an authority who is not a councillor to receive a payment by way of “financial loss allowance” not exceeding the amount of any loss of earnings suffered or additional expenses incurred in their role as a member.

Regulation 12 requires that a scheme under Part II shall specify the amount of the “basic allowance” or a means to ascertain that amount and also the means to ascertain any “special responsibility allowance” (or different amounts payable in respect of special responsibilities). Regulation 12 also gives authorities discretion as to whether to include in a scheme made under Part II provision for the annual adjustment of allowances by reference to such index as the authority may specify.

A scheme under Part II shall contain a provision to allow a member to forgo any part of their entitlement under the scheme by virtue of Regulation 13 and may, under Regulation 14, set out the times for payments of allowances to be made (which may be different for different allowances).

Regulation 15 provides for payment of travel or subsistence to members, at rates to be determined each year. Those rates are to be linked to rates payable to Members of the National Assembly for Wales in so far as they shall not exceed rates received by Assembly Members. Travel and subsistence claims (except claims relating to travel by private motor vehicle) are to be made on an “actual” basis and must be accompanied by relevant receipts for expenditure incurred, subject to any requirement or limitation determined by an authority.

Regulation 16 provides for all claims made for attendance allowance, travel allowance, subsistence allowance or financial loss allowance to be accompanied by a statement that the claimant has not and will not make any other claim in respect of the matter to which the claim relates. It also prevents payments under section 176 of the Local Government Act 1972 (“the 1972 Act”) where payments are made under a scheme under Part II of these Regulations.

Regulation 17 relates to allowances made to members of an appeal panel constituted under paragraph 1 or 2 of Schedule 24 to the School Standards and Framework Act 1998. Such payments are required to be paid by the authority, which maintains the school, or schools, to which the panel relates.

Regulation 18 requires every authority to keep a record of any payments made in accordance with these Regulations or any scheme made under them, giving details of the recipient and the nature of the payment. That information should be available for inspection (free of charge) by any local government elector. Copies of the information may be obtained for payment of a reasonable fee to an authority.

In accordance with Regulation 19 any scheme made under these Regulations must be publicised in the authority’s area as soon as practical after it is made. As soon as practicable after the end of a year to which a scheme relates, each authority shall publish details of the total sum paid under the scheme to each member in respect of basic, special responsibility, attendance and care allowances.

Regulation 20 provides that the Local Authorities (Members' Allowances) Regulations 1991 (the 1991 Regulations”) continue to have effect in relation to claims for duties predating 1st April 2002. Subject to certain provisions in these Regulations the 1991 Regulations are revoked. It also excludes county and county borough councils and National Park authorities from the effects of sections 174, 175 and 177 of the Local Government Act 1972. Section 176 (Payment of expenses of official and courtesy visits, etc) of the 1972 Act is modified in its application to county, county borough and National Park authorities.