Meetings

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2.      

3.      

4.      

5.      

6.      

7.      

7.1.     The Board considered the consultation responses received to its proposals as part of the annual review of the Determination.

Office Costs allowance

7.2.     The Board noted the concerns raised regarding its proposals to maintain the Office Costs allowance for its next Determination. However, as there was no evidence to suggest the allowance should be increase the Board agreed to implement its proposals which maintains the allowances at the current rate.

Residential Accommodation Expenditure

7.3.     The Board noted the support to its proposals to amend the provisions surrounding the intermediate area allowance, both for increasing the value and clarifying its use, and agreed to implement the changes in its next Determination.

7.4.     The Board also agreed to increase the outer area allowance by 2.4 per cent, which was the Consumer Price Index (CPI) for September 2018.

7.5.     The Board agreed to maintain all other allowances associated with Residential Accommodation Expenditure.

Action points:

The secretariat to:

-        formally write to Assembly Members and support staff confirming the changes to the Determination for 2019-20, including details of their salaries which will be increased by 1.2 per cent in line with the Annual Survey of Hours and Earnings (ASHE), gross median Earning for full time employee jobs in Wales;

-        publish the amended Determination.

Support staff salaries

1.      

2.      

3.      

4.      

5.      

5.1.     The Board referred to its earlier decision (item two) to adjust support staff salaries in April of each year by the change in the Annual Survey of Hours and Earnings (ASHE), gross Median Earnings for full-time employee jobs in Wales. The Board noted this would bring the indexing method for support staff salaries in line with that for Members.

5.2.     From 1 April 2019 the salaries of Members and support staff will be increased by 1.2 per cent.

5.3.     As the change would take affect from 1 April 2019 the Board agreed not to propose any further changes to support staff salaries for 2019-20. The revised salaries will be provided in the Determination for 2019-20.

Office Costs Allowance

5.4.     The Board considered the various factors which affect office costs for Members.

5.5.     The Board agreed that Members’ spend on the allowance demonstrates the current allowance is adequate and as a result has decided to maintain the allowances of £18,260 and £4,912 for the 2019-20 financial year.

Residential Accommodation Expenditure

5.6.     The Board considered the various factors which affect the Residential Accommodation Expenditure for Member.

5.7.     The Board noted there had been no change to the outer area allowance since 2017-18.

5.8.     The Board agreed to use the Consumer Price Index (CPI) for September 2018, which was 2.4 per cent, as a rate to uprate the outer area allowance for the next financial year. This follows the same principles as the Board has used to uprate other allowances in previous years. The Board agreed to propose increasing the allowance by 2.4 per cent.

5.9.     The Board agreed that the maximum amount for essential repairs of £882 per annum and the maximum amount of rental costs for Members with dependents of £120 per month, which is only applicable to outer area Members, should be maintained.

5.10.  The Board noted there had been no change to intermediate area allowance since its introduction.

5.11.  To reflect the increased demands on Members’ time since the intermediate area allowance was first introduced in 2012, the Board agreed to propose increasing the allowance to £6,840 per annum.

5.12.  The Board also agreed to propose amending the wording of the provision accordingly to reflect the multiples uses of the intermediate area allowance.

Consultation

5.13.  The Board agreed to issue a consultation on all the above proposals. The closing date for consultation would be 12 March 2019.

5.14.  The Board will consider the responses to the consultation at its March meeting.

Action points:

The secretariat to:

-     prepare an amended Determination to reflect the changes to support staff salaries;

-     issue and promote the consultation;

-     prepare a summary of the consultation responses for consideration at the March meeting.

Assembly Member support staff salaries 2018-19

1.     

2.     

2.1.    The Board considered the consultation responses received on the proposals to increase support staff salaries for 2018-19 by 2.3 per cent in line with the provisional 2017 figures for ASHE median earnings in Wales.

2.2.    In light of the consultation responses received, the Board agreed to increase support staff salaries for 2018-19 by 2.3 per cent.

Office cost allowance for 2018-19

2.3.    The Board considered the consultation responses received on the proposals to:

-    increase the office cost allowance by 5 per cent in line with the CPI rate for September 2017 and to address the additional cost demands which Members are expected to fund from their budget;

-    offer an uncapped allowance which will be confined to the criteria which is currently used to allow Members to implement security recommendations.

2.4.    In light of the consultation responses received, the Board agreed to increase the office cost allowance by 5 per cent for 2018-19 and the new provisions for implementing security recommendations.

Residential Accommodation Expenditure for 2018-19

2.5.    The Board considered the consultation response on its decision that the current allowance for outer area Members of £9,200 per annum/£775 per calendar month, the maximum amount for essential repairs of £882 per annum and the maximum amount of rental costs for Members with dependents of £120 per month should be maintained.

2.6.    The Board agreed to maintain the provisions within the Determination for this allowance but to consider the issues raised in the consultation response as part of its review of the Determination for the Sixth Assembly.

Action points:

The Board agreed to consider the other issues raised in the consultation responses during relevant pieces of work.

The secretariat to:

-    publish the amended Determination;

-    formally write to Assembly Members and support staff confirming the changes to the Determination for 2018-19.

Support staff salaries for 2018-19

1          

2          

3          

4          

5          

5.1         The Board agreed to propose an increase in support staff salaries for 2018-19 by 2.3 per cent in line with the provisional Annual Survey of Hours and Earnings (ASHE) figures for 2017 which were released in October 2017

5.2         The Board agreed to use the ASHE figure to ensure a consistent approach with last year’s pay review.

Office cost allowance for 2018-19

5.3         The Board considered the various factors which affect office costs for Members including location, inflation, specialist equipment and Assembly Commission policies.

5.4         The Board agreed to use to use the Consumer Price Index (CPI) for September 2017, which was 3 per cent, as a base rate to uprate the allowance. This follows the same principles as last year’s uprate.

5.5         However, to accommodate concerns raised as a result of the Commission’s decision not to fund Members caseworker system centrally and the extended requirements of the Official Languages Scheme, the Board agreed to propose an increase of 5 per cent in the allowance for 2018-19.

5.6         The Board also considered an allowance that Members can access to meet the reasonable costs of any security enhancements and agreed to propose an uncapped allowance is created for this purpose. However, access to this fund would be subject to Members adhering to specific criteria.

Residential Accommodation Expenditure for 2018-19

5.7         The Board considered the Residential Accommodation Expenditure for 2018-19 and agreed that the current allowance for outer area Members of £9,200 per annum/£775 per calendar month, the maximum amount for essential repairs of £882 per annum and the maximum amount of rental costs for Members with dependents of £120 per month should be maintained

Consultation

5.8         The Board agreed to issue a consultation on all the above proposals. The closing date for consultation would be 2 March 2018.

5.9         The Board will consider the responses to the consultation at its March meeting.

Action points:

The secretariat to:

-     issue and promote the consultation;

-     prepare a summary of the consultation responses for consideration at the March meeting.

Assembly Members Support Staff salaries 2017 – 18

2.1 The Board considered the response it had received to the consultation on the proposed increase in AMSS salaries for 2017-18 by 2.1% in line with the provisional 2016 ASHE median earning in Wales.

2.2 The Board agreed to increase AMSS salaries for 2017-18 by 2.1%.

2.3 The Board noted that Assembly Member’s salary will automatically increase in line with the ASHE median earning in Wales as stated in the determination

Action Points:

·         The Secretariat to formally write to Assembly Members and AMSSs confirming the salary increase for Assembly Members and AMSSs. 

·         The Board agreed to consider the other issues raised in the consultation response at a later date.

Office costs for 2017-18

2.4 The Board noted that no responses were received to its consultation on the proposed increase in office cost allowance by 1.2% in line with the CPI estimates as at November 2016.

2.5 The Board agreed to increase office cost allowances by 1.2% for 2017-18.

Action Points:

·         The Secretariat to formally write to Assembly Members and AMSSs confirming the increase in office cost allowance.

Residential Accommodation Expenditure

2.6 The Board noted the consultation to increase the residential accommodation expenditure for outer area Members to £775 per month will end on 13 April. The Board agreed a decision on the outcome of the consultation will be taken outside of the Board’s formal meeting.

Action Points:

·         The Secretariat to prepare a summary of the responses received  for the Board’s consideration.

Assembly Members Support Staff salaries 2017-18

4.1 The Board agreed to propose an increase in AMSS salaries for 2017-18 by 2.1% in line with the provisional 2016 ASHE median earning in Wales which were released in October 2016.

4.2 The Board agreed to use the ASHE figure this year to ensure a consistent approach with last year’s pay review. However, the Board agreed to continue to monitor the appropriateness of this method of indexation.

4.3 The Board agreed the closing date for the consultation on AMSS pay would be 10 March.

Action Points:

·         The Secretariat to issue the consultation on AMSS pay.

·         The Secretariat to circulate the work undertaken by the previous Board on this subject matter.

·         The Secretariat to prepare a summary of the responses received for the next meeting.

Office costs for 2017-18

4.4 The Board considered the various factors which affect office costs for Members including location, specialist equipment etc.

4.5 The Board noted the last increase in office cost was based on CPI rates. The Board agreed to use the same principle again this year. However, this will be revisited when the Board undertakes its review of the effectiveness of the Determination.

4.6 The Board agreed to propose an increase in the office costs allowance by 1.2% in line with the CPI estimate as at November 2016.

4.7 The Board agreed the closing date for the consultation on office costs would be 10 March.

Action Points:

·         The Secretariat to issue the consultation on office costs.

·         The Secretariat to prepare a summary of the responses received for the next meeting.

Residential Accommodation Expenditure

4.8 The Board considered the factors which impact the Residential Accommodation Expenditure (RAE) for outer area Members. The Board agreed further information was needed before consulting on the rate of RAE for outer area Members and will return to the issue in due course.

4.9 The Board considered two outer area subsidiary allowances for 2017-18. The Board agreed to maintain the existing annual amount of:

·         £882 to cover essential repairs for those Members entitled to claim mortgage interest; and

·         £1,440 for Members with dependents routinely residing with them at their Cardiff property.

4.10 The Board agreed to revisit the issues when it carries out its review into the effectiveness of the Determination.

Action points:

·         The Secretariat to collate further information on the cost of renting in Cardiff Bay and to circulate the findings to the Board in order for any consultation to be issued ahead of the next Board meeting. The Board agreed that should it wish to amend the residential allowances for 2017-18 this would be agreed electronically outside of the Board’s meeting.

3.1        The Board considered the following amendments to the draft Determination 2016-17 and responses to the consultation. The Board agreed to:

·         Increase AMSS salaries for 2016-17 by 1.1% in line with the provisional 2015 figures for ASHE median earnings in Wales (to be implemented on 1 April);

·         maintain the maximum entitlement to residential accommodation allowance for outer area Members which is currently £735 per month for rent payments, set the carers allowance at £1,440 per annum and continue the rate of the RAE subsidiary allowance relating to essential repairs on mortgaged properties which is currently set at 10% of the annual outer area allowance;

·         increase the office costs allowance by 1% (to be implemented on 1 April); and

·         increase the total party support allowance to £909,900.  For simplicity this has been expressed £910,000.

3.2        The Board agreed to consider provisions in the Determination for the Residential Accommodation Expenditure (RAE) once new Assembly Members have been elected if any issues arose.

3.3       The Board agreed to respond to the consultation responses on proposals for AMSS salaries 2016-17 from the Welsh Conservatives and the Welsh Labour Group. The Board agreed to take into account the matters raised on AMSS salaries as part of its strategic planning in September.

3.4        In relation to the office costs allowance, the Board noted that CPI is currently 0.3% and the next figures will be released on 22 March. The figures for April 2016 inflation will be out mid-May.

3.5        The Board noted that the latest Bank of England (Feb 2016) forecast of CPI for inflation in quarter 1 of 2016 is estimated at 0.4% rising to 1.2% by quarter 1 of 2017.

3.6        The Board agreed that Determination should be amended to include the proposed increase in office costs allowance by 1%.

3.7       The Board noted that the current Determination refers to ‘Opposition Party leader’ with no reference to the fact that they require three Members in a party to be a group and therefore receive the salary. The Board agreed that amending the wording to reflect this and the corresponding Standing Order requirement would add clarity to the provision in the Determination.

5.1        The Board considered additional information to inform their decision on setting the maximum entitlement for the Residential Accommodation Expenditure (RAE) Allowance.

5.2        The Board agreed that the current provision of a £735 a month allowance is sufficient for Members. In line with this decisions, the Board also agreed to maintain the rate of the RAE subsidiary allowances relating to essential repairs on mortgaged properties which is currently set at 10% of the annual outer area allowance.

5.3        The Board also confirmed the sum for the caring responsibilities allowance (subject to the approval of a business case) of up to £1,440 per annum to cover the higher cost of suitable accommodation.

5.4        The Board agreed to consult Members on these proposals.

5.5        The Board agreed that the Assembly Commission’s Members’ Business Support should receive copies of the rental agreements of all Members from now on.

7.1        The Board considered a paper on support of political parties in the Fifth Assembly and reviewed the total sum for the Political Party Support Allowance that will be available in the first year of the Fifth Assembly. The previous Board suggested that the amount set by them (£900,000) should increase in line with the pay award made to support staff for 2016-17.

7.2        The Board considered a number of factors, including inflation and that approximately 90% of the fund is spent on salaries. They agreed that the total Political Party Support Allowance of £900,000 should be increased by 1.1%, in line with the proposed increase in the pay award to AM Support Staff or by the change in the CPI in the year to April 2016, whichever is greater.

7.3        The Board noted that salaries of staff of individual Members whose posts are redundant following the election will be paid until the last day of their employment through the Members’ Winding-Up allowance. However, there is no similar allowance for party group staff who are employed by the party group and not individual AMs

7.4        The Board therefore agreed that the salaries of party group staff whose posts are to be made redundant should be funded centrally from the Assembly Commission. The Board agreed to invite responses to this decision.

Any Other Business

7.5        The Board requested an overview of all resources provided to support Members, whether provided directly by the Assembly Commission or through the Determination. This should include facilities provided for home working and constituency offices.

3.1 The Board noted that the Welsh Liberal Democrat group were the only formal respondents to the consultation on the Determination for the final year of the Fourth Assembly.

3.2 The Board noted that this consultation will apply up to the day of the election results.

3.1 The Board discussed issues around AM allowances and agreed in principle some proposals to be included in the forthcoming consultation.

3.2 The Board indicated that AM allowances might not require a radical change, however, it would need to carefully consider the recommendations of the Bangor University report to make a fully informed decision.

3.3 The Board agreed to re-visit this issue at its meeting on 16/17 October 2014.

·         Compilation of consultation responses – Paper 4

2.1     The Board noted the responses to the consultation following the Board meeting on 31 January 2014.

·         Paper 2c

2.7     The Board considered a paper prepared by Members’ Business Support setting out areas for consideration as part of its annual review of the Determination.

2.8     The Board considered the budgets for rental allowance for Outer Area AMs, and office costs.

2.9     The Board agreed to consult Assembly Members on proposals to increase the rental allowance for Members whose main homes are located within the Outer area from £700pcm by 5% to £735pcm to reflect changes to the rental market.

2.10   The Board also agreed to consult on proposals to increase the Office Costs Allowance in line with inflation.

·         Paper 2 - Annual Review of the Determination

-        Annex A: Draft amendments to the Determination

4.       Following its meeting of 22 March, the Chair of the Board had written to all Members outlining the proposed changes to the Determination arising from the consultation undertaken earlier in the year.

5.       The Board considered feedback received from Members before finalising the proposed amendments to the Determination for the current financial year. The following decisions were agreed by the Board:

Office Cost Allowance

6.       Increasing, for 2013-14, the office cost allowance to £16,697  in line with the OBR’s Forecast Consumer Price Index (CPI) of 2.8% for 2013

Accommodation allowance – essential repairs

7.       Allowing within the accommodation allowance, for Members within the transitional arrangements, payments for essential repairs. These would be subject to pre-approval by the MBS and capped at £840 (10% of the total accommodation budget)

Necessary security precautions for properties that are not the Member’s main home.

8.       Approval of reasonable claims for costs of additional security precautions for properties that are not the Member’s main home deemed necessary to minimise security risks. Any payments would be subject to the Member’s submission of written advice from the police confirming the necessity of such precautions and, where the cost is £750 or more, a minimum of three competitive quotes for the required work and equipment.

Travel outside the European Union

9.       Amending the Determination to allow travel outside the EU, as part of Member’s existing entitlement of up to four return journeys in any financial year. Approval of such visits would be subject to appropriate safeguards, including submissions of business cases to present the value and merits to the Member and the Assembly from the proposed visit, and an undertaking to draft a post-visit report to be posted on the Assembly’s website.

Consideration of exceptional payments.

10.     The Board discussed this matter and the practicalities involved to ensure that a speedy decision could be reached whilst ensuring that safeguards in place protect individual identities and confidentiality.

11.     The Board decided that it would revisit and further consider the issue at its next meeting in October.

Support for Members with caring responsibilities

12.     The Board agreed to proceed with a detailed consultation with Members following the summer recess to inform its consideration as to whether to introduce an allowance for Members with caring responsibilities along similar lines to arrangements currently in place in the House of Commons and the Northern Ireland Assembly.

13.     These decisions would be recorded in the Board’s Annual Report for 2012-13.

14.     The Board agreed that a general refresh of the wording of the Determination would be undertaken as part of the review in preparation for the Fifth Assembly.