Dear Assembly Members,
The Remuneration Board held its first meeting of 2015 on 12 January. I am writing to keep you abreast of progress towards a brand new Determination for the Fifth Assembly, and to invite consultation responses on a small number of changes we are proposing for the coming year (starting in April).
Determination for 2015-16
The Board is not minded to make wide-ranging changes for the final year of this Assembly. The changes we are proposing to introduce from April 2015 are:
· In response to feedback in previous consultations, we are proposing to introduce a death in service provision for support staff set at 2* annual actual salary in the tax year or previous year.
· A revision of redundancy provision so that when Support Staff are made redundant suddenly (eg through their AM ceasing to be a Member, or changes in Groups staff funding), they will receive 2* statutory.It will remain at 1.5* statutory, in all other cases.
· In response to feedback from Members, we will remove the current £2,000 cap on staff travel and overtime, subject to funds being available in Members’ budgets.
· We will allow Members to increase their office costs allowance by up to 25% by viring funds from their staffing cost allowance (this has been brought forward a year in response to feedback by Members).
· Office costs allowance to change by the rate of CPI in March 2015.
· As previously announced, AMs base salaries will increase by 1% to £54,390.
· As set out in my previous letter, the Board is currently consulting on a proposal to increase AMSS salaries for 2015-16 by 1% or the March 2015 figures for ASHE median earnings in Wales – whichever is the greater. (closing date on this matter is 11 Feb)
· We will put in place arrangements to ensure office holders who remain in post until replaced in the new Assembly i.e. Ministers & Presiding Officer, are fairly remunerated.
· All other items would remain unchanged.
As these items have either already been consulted on, or have been proposed as a result of previous consultation responses, any further responses should be received by 19 February.
Determination for the Fifth Assembly
The Board considered a small number of outstanding issues for the Fifth Assembly and will consult on these when we publish the draft Determination in March.
AM Allowances
The Board considered the responses to our consultation on AM Allowances. We noted that AMs report increasingly being asked to work in to the evening, and questioned whether the Board should do anything to support this. While we appreciate that the responsibilities of AMs will sometimes require late sitting, the timing of business is a matter for Members themselves.
In March, we will announce our final proposals on AM Allowances as part of the draft Determination for the Fifth Assembly, and also publish the consultation responses.
AM Salaries
The Board took a first look at the formal and informal responses to our consultation on AM Salaries. We reached no formal conclusions. In March, we will announce our final proposal as part of the draft Determination, and also publish the consultation responses.
Group support
The Board again considered the support available to groups, which currently amounts to some £900,000. We are mindful that the current system is complex, lacks a clear rationale and that costs would rise significantly if the number of groups in the Assembly increases.
The Board is keen to introduce a system which would:
· enable and encourage effective scrutiny of the government;
· ensure that all groups have sufficient administrative support to operate in a co-ordinated and efficient manner.
We also considered how best to support the scrutiny work of any Members who were not part of a party group as defined by the Assembly, and how to ensure that the cost of group funding is kept at - or close to - the present level.
We have considered a number of alternative funding models and will take further soundings on these from all groups over the next couple of weeks before issuing proposals for public consultation in March.
Equalities
We are grateful to Diverse Cymru for attending our meeting, and providing feedback on our work to date to ensure that equality issues have been given due consideration. We intend to publish this work as part of our main report accompanying the final determination in May 2015.
Next steps
As usual, I intend to make this letter publicly available through our website once Members have had a chance to read it.
We intend to publish our draft Determination for the Fifth Assembly at the start of March, with a short consultation paying particular attention to those issues on which we have not yet consulted. We remain on course to publish our final Determination towards the end of May 2015.
As always, I am happy to meet with individual AMs or party groups to discuss any aspects of the Board’s work. If you would like to meet, please contact the Board’s clerk Gareth Price remuneration@wales.gov.uk to make arrangements.
Yours sincerely
Sandy Blair CBE
Cadeirydd / Chair
Bwrdd Taliadau/Remuneration Board