Defeated Powys councillors could receive redunancy pay

By Chris Haines, ICNN Senedd reporter

Powys County Councillors could receive payments when they are voted out by the electorate in future, a committee has heard.

Under the Elections and Elected Bodies bill, councillors in Wales who lose their seats could receive a resettlement payment.

The policy attempts to remove barriers, such as for people with caring responsibilities, and ease the transition for those who are giving up their careers to stand for election.

Similar arrangements are already in place for members of the Senedd and UK Parliament.

After the 2021 election, 10 former MSs were awarded transitional payments ranging from £14,000 to £40,000, which cost the public purse more than £360,000, according to a freedom of information request.

The resettlement grant for MSs is guided by the independent remuneration board which produces an annual ‘determination’ on members’ pay and allowances.

Mick Antoniw, the Welsh Government’s chief legal officer, appeared before the Senedd’s local government committee to give evidence on the bill.

He said: “We use the term ‘resettlement payments’; to be honest, I suppose more coming from my legal background, I see it as almost a sort of redundancy payment.

“And redundancy payments were established to actually provide that buffer for working people when they lost their employment. I think that equally applies to those who take up elected office.”

The counsel general told the meeting: “It is just about providing a buffer in terms of the fact that after an election there will be a number of candidates who have stood but are now basically unemployed.”

Michael Kay, senior responsible officer for the bill, explained it would be for the renamed Democracy and Boundary Commission Cymru to design the scheme and set payments.

“It's part of the demonstration of respect for elected members,” he said. “So, in the same way that Members of Parliament or the Senedd would receive a resettlement payment, the intention is to respect the nature of the role of a councillor.”

Councillors receive an annual allowance of about £17,000, with certain office holders receiving more, according to a report. Council leaders, for example, are paid between £56,000 and £66,000 a year.