The Department for Communities and Local Government has launched a consultation on the issue of whether councillors and other directly elected local office holders should continue to have access to the tax-payer funded Local Government Pension Scheme (LGPS) 2014.

The consultation document entitled Taxpayer funded pensions for councillors and other elected local office holders is aimed at local taxpayers, councillors, elected local office holders and their representative bodies.

Furthermore, the consultation is part of the planned process of wider reform of the LGPS with the commitment given in the coalition government’s programme to review the long term affordability and sustainability of tax-payer funded pension schemes.

In 2003, councillors were given access to the LGPS and receive both retirement and death benefits for a flat contribution rate of 6 per cent of their basic and special responsibility allowances. An employer contribution is also paid which is tax-payer funded. In 2010-2011, a survey by the Taxpayers’ Alliance showed that 4,548 councillors had pensions.

On 19 December 2012 however, local government minister Brandon Lewis gave a written ministerial statement to parliament setting out government proposals to limit access by councillors to the tax-payer funded scheme from 2014 and argued that they are not professional, full-time politicians.

Share Story: