New proposals to increase councillors’ allowance in line with inflation
Casey Peyton
14 October 2025

An independent panel has proposed a 3.6% increase in allowance for North Yorkshire councillors alongside the rise of inflation.

Currently, the basic allowance for a member is £17,340. The panel has proposed it should be set at £17,964 for the upcoming financial year.

The chair of the Independent Remuneration Panel (IRP), Philip Battle, says the panel considered several factors.

He said: “These included the impact of the way government calculates funding for local authorities and the adverse effect this will have on rural councils, as well as the current spending review, which is likely to lead to further cuts in local government funding.

“All of this, along with the associated work to balance the budget and changes in the way in which services are delivered, have increased the workload of councillors and the panel feels this needs to be reflected in the level of allowances paid.”

This recommendation aims to fall in line with the annual Consumer Price Index (CPI) rate of inflation to June 2025, which is 3.6%.

If the proposals are approved, it will result in an increased annual cost of £56,182 which takes the total cost to £1.61 million for all 90 elected members.

Special responsibility allowances (SRA’s) paid to the councillors who take on additional duties, should also increase according to the panel.

The panel also looked at other options for adjusting pay.

They discussed whether an alternative to increasing the basic allowance and SRA’s by the rate of inflation could be to match the increase paid to council staff.

Mr Battle said: “The view of the panel is that this is not appropriate as the role of an elected member and that of a salaried employee of the council are neither similar nor comparable.” 

If this is approved by the council, then individual members can decide to take all, some or none of the allowances that are agreed.

Council leader, Cllr Carl Les said: “Encouraging people from all walks of life to become councillors is key to a fair and fully representative council.

“It is especially important in the current climate where new and innovative ways of thinking are required to help tackle the financial challenges we face.”

The proposals will be considered on Tuesday 21 October, before the recommendations go to full council for a decision on 12 November.