Croydon councillors are set to see their allowances rise in line with inflation, following a recommendation from the General Purposes Committee.
The committee met on Tuesday, January 13, 2026, to discuss proposed changes to the Members' Allowances Scheme for the 2026-27 financial year. A key element of the proposed scheme is an annual inflationary increase to expenses, reflecting the Consumer Price Index (CPI) from 2024 to November 2025, which stood at 4.1%.
This measure aims to address a significant disparity that has grown over two decades between expense rates and the rising cost of living. The report highlighted that expense rates had not been reviewed for at least 20 years, during which time the CPI indicated a 98.9% increase in the cost of goods and services. The proposed increase to expense rates is 4.1%, reflecting the CPI from 2024 to November 2025. The report notes that the annual cost of this inflationary increase to the expenses scheme for travel and accommodation is likely to be around one hundred pounds, given the level of reimbursement claims made by Members of the Council.
Councillor Sean Fitzsimons, Chair of the Committee, stated, whatever organisation one works for, if one incurs a cost in the course of one's duty, one should be able to recover that cost. You're not making a profit on it. It's not a wage. It's just effectively, if you're paying for a hotel, it seems strange that the amount of the allowance cannot cover the costs of the accommodation.
He added that this would prevent individuals of modest income from being deterred from serving.
The scheme also proposes to make the review of expenses and reimbursement rates an annual event, aligning with the review of basic and special responsibility allowances. The Dependent Carers Allowance has been updated to reflect the latest London Living Wage. The current London Living Wage is stated as £14.80 per hour.
The committee unanimously agreed to recommend the proposed scheme to Full Council. The report noted that a wider review of the Members' Allowance Scheme, encompassing subsistence, hotel costs, and travel, is ongoing. Proposals from this review are scheduled to be presented to the General Purposes Committee during 2026/27, but an exact publication date for the findings has not yet been specified.
Read the Public reports pack for more details. The Agenda frontsheet and Supplementary Agenda were also discussed. The Minutes from the previous meeting held on 4 November 2025 are also available.
