Tower Hamlets council members will soon be eligible to join the Local Government Pension Scheme, a significant change approved at the council's meeting on Wednesday, March 25, 2026.
This new eligibility for elected members was confirmed as part of the updated Members' Allowances Scheme for 2026/27. The decision follows government guidance and a consultation that indicated general support for aligning councillors' pension access with that of elected members in Scotland, Northern Ireland, and Wales.
The scheme, which will come into effect from May 11, 2026, will allow elected members to opt-in to the Local Government Pension Scheme. This move is intended to encourage a wider range of individuals to consider public service by offering a more consistent and attractive remuneration package.
While the basic allowance and most special responsibility allowances remain unchanged for the upcoming year, the Dependent Carers' Allowance is set to increase to £14.80 per hour, aligning with the London Living Wage. The council's pay policy statement for 2026/27, also approved at the meeting, confirms that elected members are now eligible to join the Local Government Pension Scheme.
The scheme aims to balance the need for appropriate reward mechanisms with the council's commitment to supporting its lowest-paid employees and encouraging career progression.
