Tower Hamlets Council has approved a significant increase to its Members' Allowances Scheme for 2026-27, following a four-year freeze.
The decision was made at the annual meeting of the council on Wednesday, 20 May 2026. Councillor Mayim Talukdar, Deputy Mayor, introduced the report, highlighting that current allowance levels were lower than comparable councils and had been frozen for an extended period. Councillor Kubira Ahmed seconded the report, emphasizing the disparity in allowances and the need to encourage a more diverse range of candidates to stand for election.
However, Councillor David Edgar spoke against the scale of the proposed increases, describing them as very, very big increases in allowances
of 35%, 63%, 34%, 70%
, particularly questioning the creation of two new 'ambassador' posts and the role of deputy cabinet members. Despite these objections, the motion was carried.
The report on the Members' Allowances Scheme for 2026/27 indicates that the basic allowance for councillors will be £11,898, with a Mayor's allowance of £81,579. The scheme also outlines Special Responsibility Allowances for various roles, including Cabinet Members, Chairs of Committees, and the Speaker. The standard uplift in line with the staff award scheme for 2026 is included in these figures. The report notes that the standard uplift in line with the staff award scheme for 2026
is included. The Cabinet Member allowance is set at £21,754, which remains unchanged from the previous period.
The report, which was agreed at a Council meeting on 25 March 2026, references the role of the London Independent Remuneration Panel (IRP) and provides comparator data with other similar London Authorities. It states that Tower Hamlets usually offers the lowest or one of the lowest allowances in each category when compared to the IRP's recommendations and other London Mayoral Authorities. For instance, the basic members' allowance at Tower Hamlets (£11,898) remains below Hackney (£12,792) and Newham (£15,960), and also below the level recommended by the independent panel (£15,960). The rationale behind the current scheme being lower than recommended is to encourage working-class residents to stand for election, as higher allowances in other authorities could discourage participation from less affluent individuals.
The report on the Members' Allowances Scheme for 2026/27 states that Any approved changes will take effect from May 2026. As a result, any increase will lead to an overspend in the 2026–27 financial year. The ongoing impact in subsequent years will need to be included in the Medium-Term Financial Strategy (MTFS).
However, the specific monetary amount of this projected overspend is not detailed.
The scheme also includes provisions for Dependants' Carers' and Travel/Subsistence Allowances, as well as a Maternity, Paternity, Adoption and Sickness Pay policy for Members.
Read the full report here: Public reports pack 20th May 2026 19.00 Council
