National Assembly for Wales moves ahead with changes to financial support for Assembly Members.

2 November 2009

The first phase of recommendations from the “Getting it Right for Wales” review of the pay and allowance system for Assembly Members come into force today (Nov 2).

The report, the result of a ten-month inquiry by an independent panel, recommended a total of 108 changes to the existing system of financial support for Members.

Assembly Commissioners agreed, on July 8, to implement all recommendations in full in order to achieve a completely open and transparent system of financial support for AMs.

“The Assembly Commission’s intention when it set up the independent panel in 2008 was to demonstrate to the Welsh public a commitment to transparency,” said Presiding Officer, Lord Dafydd Elis-Thomas.

“A commitment that was made well before the storm over MPs expenses blew up in Westminster.

“The panel’s recommendations offer a unique opportunity to strengthen the National Assembly’s contract with the people of Wales in its role of law-making and government scrutiny.

“We have been able to take a lead on this issue, so distancing ourselves from the turmoil in Westminster, thanks in large part to the swift and supportive response that Assembly Members gave to my statement to them back in July.”

28 of the independent panel’s recommendations will be implemented in this first phase (listed below). The second phase of implementation will take place by March 2010. The third phase will be implemented before the next Assembly election in May 2011, with the final phase being introduced to take effect in the Fourth Assembly.

Extra information:

Phase 1 – Panel recommendations to be implemented by 2 November 2009

Assembly Members’ expenses

• The flat rate of £30.65 claimed by Assembly Members when away from their main home should be abolished as soon as possible.

• Assembly Members should no longer claim for furniture and fittings for their second home.

• Assembly Members should be entitled to claim for the reimbursement of reasonable expenses, necessarily incurred, when undertaking Assembly business.

• Assembly Members claiming expenses for these activities will be required to provide the appropriate documentary evidence, and explanation to demonstrate that the expenditure was incurred and the activity was undertaken.

• Eligible Assembly Members should be able to claim, where appropriate, reimbursement for utility bills, council tax, broadband, insurance and a television licence for the second home provided by the Assembly.

• Assembly Members’ Salaries

• The salaries of Assembly Members should no longer be automatically directly linked to those of Members of Parliament.

• The current basic salary of £53,108 for Assembly Members is appropriate, and should be uprated in April 2010, in line with inflation (same as AMSS).

• Any future pay rise for Members will be linked to the baseline salary of Members as of June 1, 2009 (£53,108)

• Committee chairs should receive an office holder supplement of either £12,000 per year or £8,000 per year. The Assembly Commission should determine which supplement applies to each committee chair, to apply for the remainder of the Assembly term. Additional office holders currently entitled to the same supplement as committee chairs should maintain parity.

• Following the next Assembly election, additional office should receive supplements in the same proportion to the basic salary as will apply following the adjustments described in recommendation 13. These proportions will be subject to review by the Independent Review Body from time to time.

Office costs

• The Office Cost Allowance for Assembly Members should continue at the present level for local office costs and surgery advertising.

• The local office costs provision should enable Assembly Members to be reimbursed for all reasonable costs, relating to the running of a local office and engaging with constituents. Receipts or proof of expenditure will be submitted with all claims and the new monthly arrangements for publishing information on Members’ expenses should be maintained.

• With the approval of the Members’ Business Support Team, Assembly Members should be able to claim an additional Office Costs Allowance provision in respect of the amount in excess of £2,000 in any financial year, spent in their local offices on safety, security and disability access; and this excess should be reimbursed over and above the basic Office.

• Assembly Members should continue to employ their own staff.

• All staff salary costs should continue to be administered through the payroll services provided by the National Assembly and identified against each individual Member as appropriate.

• Employer contributions for National Insurance should continue to be paid by the Assembly Commission out of Assembly Members’ staff salary allowance and identified against them.

• Employer pension contributions should continue to be subject to a maximum of 10 per cent of actual annual salary.

• It should be permissible for costs associated with temporary staff employed to cover legitimate absences to be met from a central fund. Payments should only be made on condition that the cover is required for a substantive post. Cover for casual or temporary staff should not be permitted.

• In addition to the computers and other ICT equipment provided in the Cardiff Bay and constituency offices, each Assembly Member should continue to receive one Blackberry (or similar), one mobile phone, one laptop computer, one landline and broadband access.

• All ICT equipment issued to Assembly Members should continue to be recorded on an asset register and should be returned to the Assembly Commission when a Member leaves.

Travel costs

• Mileage rates will continue to be based on those set by Her Majesty’s Revenue and Customs and will apply to both Assembly Members and their staff.

• Assembly Members will continue to be eligible to claim for travel between their home, the Assembly and local offices.

• Existing arrangements for travel by Assembly Members’ partners and children, as set out in the Salaries and Allowances Determination 2009 should be maintained.

• The use of hire cars by Assembly Members or their staff should cease, save in exceptional circumstances.

• Journeys outside the UK (except for travel to Brussels and Strasbourg), should continue to be agreed by the Members’ Business Support Team in advance.

• The Assembly Commission will review current policy for car parking arrangements in the Assembly offices in Cardiff Bay, with regard to Assembly Members, their staff and the Assembly staff – in relation to the equity of provision, sustainability and resource implications.

• The Commission’s Corporate Governance Committee should be renamed the Audit Committee.

• The existing Audit Committee should be renamed the Public Accounts Committee (Wales).(To be debated in Plenary on November 4)