Croydon councillors are set to have their expenses reviewed, with a proposal to introduce annual inflationary increases to better reflect the rising cost of living.
The General Purposes Committee met on Tuesday, January 13, 2026, to discuss the Members' Allowances Scheme for the 2026-27 financial year. The committee unanimously agreed to recommend to Full Council that the scheme be approved, with amendments including an annual inflationary increase to expenses and an updated dependent carers allowance. The proposed annual inflationary increase to expenses is 4.1%, reflecting the Consumer Price Index (CPI) from 2024 to November 2025. This increase is intended to at least pause an expanding gap between the current expense scheme rates and inflation.
The report presented to the committee highlighted that expense rates had not been reviewed for at least two decades, leading to a significant disparity between current rates and the rising cost of living. 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 as councillors.
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, which is stated as £14.80 per hour in the 2026/27 scheme. This update aims to ensure that the allowance adequately supports those with caring responsibilities.
A wider review of the Members' Allowance Scheme, encompassing subsistence, hotel costs, and travel, is also ongoing. This review will consider issues such as mirroring officer rates for private motor vehicle expenses, the provision for electric vehicles, and the potential for hotel expenses to be based on 'reasonableness' rather than fixed rates. Further work and consultation are required before final proposals can be presented for consideration during 2026/27, with proposals scheduled to be presented to the General Purposes Committee during that financial year.
In the 2023/24 financial year, total expenses claimed by members amounted to £1,355, rising to £1,905 in 2024/25, indicating relatively low overall expenditure.
The committee also noted that a report by the Independent Panel on the Remuneration of Councillors in London in 2023 highlighted that basic allowances in London were significantly lower than in other parts of the UK. While Croydon's current basic allowance remains at £12,367, the proposed scheme for 2026-27 will maintain this figure, with the focus of the current review being on expenses. The Independent Panel's report noted that Scotland's basic allowance was £20,099, Wales' was £17,600, and Northern Ireland's was £16,394. The Panel recommended a basic allowance of £15,960 for London boroughs, based on the median wage for all London workers.
Further details on the proposed scheme can be found in the public reports pack for the General Purposes Committee meeting on January 13, 2026: Public reports pack.
