Greenwich councillors have voted to increase their basic allowance by 41.8%, from £11,906 to £16,882 a year, despite the council forecasting a deficit of more than £30 million in 2027/28.
The rise was approved at a full council meeting on 11 November 2026 by 40 votes to six, with three abstentions, and takes effect from 1 December 2026. The new figure is the level recommended by London Councils’ Independent Remuneration Panel, updated in line with the 2025/26 pay award. Special responsibility allowances (SRAs), paid to councillors who take on extra roles, will also be adjusted to match the panel’s recommendations.
Some councillors raised concerns about the cost to taxpayers. The council’s medium-term financial strategy forecasts a deficit of more than £30 million in 2027/28, which could rise to nearly £120 million by 2030/31. The allowance increase will cost between £0.2m and £0.3m this year, rising to between £0.7m and £0.8m over a full year.
Councillor Matt Hartley argued the increase was not justified and that the council’s finances did not support it. He said an answer from the leader of the council “confirms that councillor allowances have already risen since 2022, and of course he’s proposing a further 42% increase in the basic allowance this evening”. He added that the rise would make Greenwich’s basic allowance the second highest in London, and its cabinet members the highest paid.
But supporters said the role of councillor must be financially accessible to people from all backgrounds. Councillor Jahdia Spencer said the current allowances can exclude people who do not have independent financial security, limiting the diversity of elected representatives. Councillor Stewart Christie welcomed the move to an independent pay system, saying it would take politics out of the process and ensure a strong opposition.
The increase is intended to make sure allowances reflect the demands of the role, and to encourage a more diverse range of people to stand for election.
The Independent Remuneration Panel’s 2023 report found that basic allowances in many London boroughs are significantly lower than those paid in Scotland, Wales and Northern Ireland. Almost everyone the panel spoke to said councillors’ workloads, demands and pressures had increased. It also found that, in most cases, SRAs do not make up for the reduced salary councillors receive when they cannot commit fully to their day jobs.
The panel based its calculation on the median wage for all London workers, which was £38,936.73 in 2022-23. Applying a 30% public service discount, it recommended a basic allowance of £15,960. It also recommended that allowances rise each year in line with the pay award for local government staff. Greenwich’s current basic allowance is among the lower allowances in London, below both the panel’s recommended level and the London median of £12,751.
The council also agreed to introduce new SRAs for the Deputy Leader and Whip of the Largest Opposition Group, at Band 1 level, replacing two former Cabinet Assistant SRAs.
From 2027/28, both basic allowances and SRAs will rise automatically each year in line with the National Joint Council for Local Government Services pay settlement. This will apply for four years or until a new decision is made, and the annual increases will not need further council approval.
The council also agreed new rules on sickness absence and updated its scheme to cover pensions, with changes to its constitution to match. Councillors will continue to receive their basic allowance while off sick, and SRAs will continue for up to six months, with possible extensions. Councillors have been able to opt into the Local Government Pension Scheme (LGPS) since 11 May 2026 under national regulations, and the council’s scheme now formally includes this.
A further review by the Independent Remuneration Panel is due to take place before late 2027.
