You Too Can Earn A Substantial Income Working Just A Few Hours A Week

You'll often hear or read comments from members of the public regarding the basic allowances paid to Councillors. I myself don’t have a problem with Councillors being paid for out-of pocket expenses nor do I resent Councillors being paid for time spent on council business. If becoming a Councillor carried a cost then this would surely deter anyone who was not so well off from standing which, in my view, would be undemocratic

That said, it’s interesting to note how the concept of Councillor allowances’ has changed over the years. For example, it used to be the case that Councillors were required to keep a record of the various meetings that they attended and then submit claims to cover their out-of-pocket  expenses and what amounted to an attendance allowance for each meeting. Using this method, the more meetings a Councillor attended the more he would receive in allowances while those with poor attendance records would receive proportionately less.

Not so long ago, this procedure was changed so that all Councillors received a flat rate allowance regardless of their individual attendance records at meetings. As a result, Councillors with excellent attendance records were paid the same as those whose attendance was poor or even, as in some cases, abysmal.

All Councillors now receive the basic allowance which, as stated in the Hartlepool Borough Council Constitution (as amended in December 2006), currently stands at £5,410. However, this first tier allowance is a long way from being the full story.

Under the present system, The Mayor (£60,076) chooses his Cabinet Members who are then paid an extra £5,410 for their portfolio responsibilities, as does the Chair of the Scrutiny Coordinating Committee, making a total of £10,820. The Chair of the Council also receives an extra £4,328. Councillors who are chosen to chair any of the numerous other committees are also paid ‘special responsibility’ allowances. Specifically, Neighbourhood Forum Chairs and the Chairs of the Scrutiny Forums receive an extra £3,246; the Planning Committee Chair receives an extra £4,328; the Licensing Committee Chair receives an extra £2,164 and the Contracts Scrutiny Panel Chair receives an extra £1,082.

There are other expense allowances for all sorts of things including the more obvious ones covering travel, telephone line rental, accommodation and car mileage. The current car mileage allowance of 48.5p per mile for a car with an engine over 1200cc is payable to all Councillors and council employees. It is the most generous I have ever seen being sufficient to buy a litre of petrol for every two miles travelled. 

The second tier of potential income comes through being selected to sit on the executive board of various public bodies which have a direct link to the local authority. The equivalent of the Golden Fleece for Councillors hangs on the respective trees of the Police and Fire Authorities. Wangling yourself a seat on the executive committees of one of these quangos can bring in an extra £15,000. If a Councillor gets to Chair one of the various sub-committees within the Police or Fire Authorities then this can increase to a cool £19,000. In return, the Councillor is expected to attend surprisingly few meetings each year although even this condition is apparently not compulsory.

The Police Authority is a particularly interesting example. Recently, members of the Authority themselves decided that once appointed they should remain on the executive committee for four years. The reason given was the cost of training and 'continuity'. In effect, this gives appointed Councillors a guaranteed four-year income irrespective of whether they lose their seats as Councillors within the four-year period. In fact, although highly unlikely, it is now theoretically possible to produce a situation where none of the sitting board members of the Police Authority are Councillors. The issue is particularly relevant to Hartlepool as it is the only town within the Cleveland Police area to hold annual local elections.

This serves to highlight one of the more interesting aspects of allowances in that whenever changes are made, those changes appear to favour an increase of one sort or another. For example, the move from claimable allowances to automatic allowances clearly benefited Councillors with poor attendance records. In the case of the Police Authority, here we have a change which, even if a Councillor loses his seat, continues to guarantee him a significant income.

Incidentally, the Nolan Report into Local Government stated that 'decisions should not be taken were the 'man in the street' would presume an interest.' In these circumstances, it's difficult not to conclude an interest as the board members voted for a change in which they themselves were the principle beneficiaries.

With all of this in mind, it’s hardly surprising then that each May, when the local elections are over, our Councillors undergo a brief metamorphosis and turn into vicious, primeval carnivores as they, through a heady mixture of back-stabbing, sycophancy and character assassination, fight to be selected to one of these lucrative second tier positions. It’s unpleasant to witness and by the end of the process Councillors emerge with either smug grins on their faces or with a portfolio of new resentments which will go on to influence voting patterns for the next 12 months.

We have not quite yet exhausted all the opportunities a Councillor has to expand his or her income. The third tier of potential income for our Councillors comes from those appointments to public bodies and quangos which are not directly controlled by local authorities. Nevertheless, being a Councillor or having political affiliations does no harm to your prospects whatsoever. Although such appointments can at first sight be subject to a selection process they remain essentially political appointments. It’s a case of what you know is much less important than who you know. An example of such a third tier opportunity would be the Chairmanship of the local Primary Care Trust Boards which in Hartlepool’s case carries a salary in excess of £20,000; again for what is a very part-time position.

So there you have it.

The next time you see a poster stuck to a lamp-post or under a windscreen wiper telling you that you can earn a good income for very few hours work each week then don’t automatically assume that it involves selling Tupperware or cleaning products door-to-door. It could well be an invite to stand as a local Councillor !