Hackney Council has rolled over its Members' Allowances Scheme for the 2025/26 municipal year, maintaining the 2024/25 rates due to the absence of a national pay settlement for local government officers.
The decision, made at the council meeting on 23 July 2025, ensures that councillors will continue to receive allowances based on the existing structure, which is informed by recommendations from the London Councils Independent Remuneration Panel. The council is legally required to consider and agree a Members' Allowances Scheme each year, and rolling forward the 2024/25 scheme rates for 2025/26 ensures this legal obligation is met until the national pay settlement negotiations are concluded. The Members Allowances Scheme Report 2025_26 details the approved scheme.
According to the report, the Members Allowances Scheme historically takes into account the officer national pay settlement, which is typically agreed upon in April each year. The basic and special responsibility allowances are normally uplifted each year in line with the Local Government Pay Settlement Pay Rate when this becomes known. However, with no settlement in place for April 2025, the council opted to roll forward the 2024/25 scheme rates to meet legal obligations.
The council has indicated that a revised scheme for 2025/26 will be brought forward for consideration once the pay negotiations have concluded.
The Members Allowances Scheme Report 2025_26 also noted that the London Councils Report of the Independent Panel on the Remuneration of Councillors in London 2023 made the recommendation of a substantial increase in the basic allowance for a Councillor. While the Cabinet Member for Finance, Insourcing and Customer Service had previously indicated the Council's desire to implement this, it is not considered affordable this year given the current financial situation. Modelling of the costs of the scheme shows that acceptance of this recommendation would save the council approximately £80k in 2025/26 and up to £130k in 2026/27 compared to the costs modelling the substantial increase. The current linkage to the officer pay award of the basic allowance, in line with the other allowances in the scheme, will continue.
The current scheme will be fully funded from the existing budget allocation of £1.87m for 2025/26.
The meeting also addressed questions from both members of the public and councillors, covering topics ranging from youth viewpoints and support for rough sleepers to benefit uptake and school sites.
Opposition Sponsored Business from the Hackney Independent Socialist Group focused on Hackney's Poor Record on Community Consultation and Engagement, while a Labour motion addressed violence against women and girls.
The council also received the Strategic Plan Annual Update Report 2024-25, the Annual Report of the Audit Committee 2024-25, and the Licensing Service Annual Report 202324 and 202425.
