Elections and Elected Bodies (Wales) Act 2024

57 Democracy and Boundary Commission Cymru functions relating to remuneration

(1) The 2013 Act is amended as follows.

(2) After section 69 insert—

“PART 5A FUNCTIONS RELATING TO PAYMENTS AND PENSIONS

Remuneration of authority members

69A Function relating to payments to members

(1) For the financial year beginning 1 April 2025 and for each following financial year, the Commission must decide the relevant matters for which a relevant authority—

(a) is required to make payments to members of the authority;

(b) is authorised to make payments to members of the authority.

(2) In this Part relevant matters are—

(a) matters relating to the official business of members of relevant authorities;

(b) periods of family absence under Part 2 of the 2011 Measure.

(3) When making a decision under subsection (1) the Commission must set for each relevant matter one of the following—

(a) the amount that a relevant authority must pay to a member of the authority;

(b) the maximum amount that a relevant authority may pay to a member of the authority.

(4) The Commission may decide that payments in respect of a relevant matter or matters may not be paid to more than a fixed proportion or specified number of the members of a relevant authority.

(5) The proportion fixed by the Commission under subsection (4) may not exceed 50% unless the Welsh Ministers give their consent.

(6) The number specified by the Commission under subsection (4), expressed as a proportion of the total number of members of a relevant authority, may not exceed 50% unless the Welsh Ministers give their consent.

(7) The Commission may set—

(a) the maximum percentage or other rate by which a relevant authority may adjust for a financial year the amounts that had effect in respect of relevant matters for the financial year preceding that year;

(b) an index by reference to which a relevant authority may adjust for a financial year the amounts that had effect in respect of such of the relevant matters for the previous year as the Commission decides.

(8) The powers under subsection (7) may be exercised to—

(a) set a rate and an index in relation to the same matter;

(b) set different rates or indices in relation to different matters.

(9) When setting an amount under subsection (3), making a determination under subsection (4) or setting a rate or index under subsection (7), the Commission must take into account what it considers will be the likely financial impact of doing so on relevant authorities.

(10) The Commission may make different decisions under subsection (1), set different amounts under subsection (3), make different determinations under subsection (4), or set different rates or indices under subsection (7), in relation to relevant authorities of different descriptions or different relevant authorities of the same description.

(11) For the purposes of subsection (2) a matter relates to the official business of a member of a relevant authority if it is a matter which a member undertakes—

(a) as a member of a relevant authority, or

(b) as a member of a body to which the member is appointed by, or following nomination by, the relevant authority or a group of bodies including the relevant authority.

(12) In this section and in section 69E “financial year” means a period of 12 months ending with 31 March.

69B Functions relating to members’ pensions

(1) This section applies in relation to members of relevant authorities who—

(a) are not co-opted members, and

(b) are for the time being eligible for membership of a pension scheme in accordance with regulations under section 7 of the Superannuation Act 1972 (c. 11) (local government pension schemes).

(2) The Commission must decide the descriptions of members in respect of whom a relevant authority is required to pay a pension (a “relevant pension”).

(3) The Commission must decide the relevant matters in respect of which a relevant authority is required to pay a relevant pension.

(4) The Commission may make different decisions in relation to relevant authorities of different descriptions or different relevant authorities of the same description.

69C Relevant authorities, members etc.

(1) This section applies for the purposes of this Part.

(2) An authority is a relevant authority if it is—

(a) a local authority;

(b) a National Park authority for a National Park in Wales;

(c) a Welsh fire and rescue authority, that is an authority in Wales constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 (c. 21) or a scheme to which section 4 of that Act applies;

(d) a corporate joint committee;

(e) a body specified as a relevant authority in regulations made by the Welsh Ministers.

(3) A reference to a description of a relevant authority is to be read with subsection (2).

(4) “Member”, in relation to a relevant authority, includes—

(a) an elected mayor of the authority (within the meaning of section 39(1) of the Local Government Act 2000),

(b) an elected executive member of the authority (within the meaning of section 39(4) of that Act),

(c) a co-opted member of the authority, and

(d) a person who is a member of a sub-committee of a corporate joint committee and is entitled to vote on any question to be decided by that sub-committee.

(5) “Co-opted member”, in relation to a relevant authority other than a corporate joint committee, means a person who is not a member of the authority (except by virtue of subsection (4)) but—

(a) is a member of a committee or sub-committee of the authority or is a member of, and represents the authority on, a joint committee or joint sub-committee of the authority, and

(b) is entitled to vote on questions for decision at meetings of that committee or sub-committee.

(6) A body may only be specified as a relevant authority in regulations under subsection (2)(e) if—

(a) the Welsh Ministers exercise functions in respect of it,

(b) it exercises a function conferred by a Measure or Act of Senedd Cymru, or a function that could be conferred by an Act of Senedd Cymru (including a function that could be conferred only with the consent of a Minister of the Crown), and

(c) its membership includes at least one member of an authority described in subsection (2)(a) to (d).

(7) Sections 69A(4), 69B, 69E(4)(d) and 69O do not apply in relation to a relevant authority described in subsection (2)(d) or (e).

(8) In this section “corporate joint committee” means a committee established by regulations under Part 5 of the Local Government and Elections (Wales) Act 2021 (asc 1).

69D Functions relating to resettlement payments

(1) A resettlement payment is a payment to a person who—

(a) ceases to be a member of a local authority at the end of their term of office,

(b) when in office was a member of a local authority of a description specified in regulations made by the Welsh Ministers,

(c) stands for re-election for membership of the same authority in the ordinary election of the local authority for the term following the term of office, and

(d) is not returned as a member at that election.

(2) The Commission must decide—

(a) the circumstances in which a local authority is required to make a resettlement payment;

(b) the circumstances in which a local authority is authorised to make a resettlement payment;

(c) the matters in respect of which a resettlement payment is payable.

(3) When making a decision under subsection (2) the Commission must set—

(a) the qualifying conditions for payment;

(b) the amount a local authority is required to pay;

(c) the maximum amount a local authority may pay to a member;

(d) a mechanism by which the amount of payments set under paragraph (b) or (c) may be increased or decreased;

(e) requirements on how payments are to be made (and their frequency).

(4) The Commission must make arrangements to review any decision it makes under subsection (2) and, if it thinks appropriate, may revise its decision.

(5) When making a decision under this section the Commission must take into account the likely financial impact of its decision on local authorities.

(6) When making a decision under subsection (2) the Commission may make different provision in relation to local authority members of different descriptions or different members of the same description.

(7) The Commission must make a decision under subsection (2) before each ordinary election of the local authority, beginning with the election that is to be held in May 2027 and must review the decision before each subsequent ordinary election.

(8) Subsection (7) applies only if the Welsh Ministers make regulations under subsection (1)(b).

69E Annual remuneration reports in relation to members of relevant authorities

(1) The Commission must prepare and publish a report (an “annual remuneration report”) about the exercise of its functions under this Part in respect of each financial year.

(2) An annual remuneration report must set out the requirements imposed on relevant authorities by the Commission under sections 69A, 69B and 69D.

(3) An annual remuneration report must be published no later than—

(a) 28 February in the financial year before the financial year to which the report relates, or

(b) such later date as the Commission and the Welsh Ministers may agree.

(4) An annual remuneration report must set out—

(a) the relevant matters,

(b) the amounts set under section 69A(3),

(c) the proportion or number determined under section 69A(4),

(d) the members or descriptions of members of relevant authorities to or in respect of whom relevant authorities will be required to pay a relevant pension,

(e) the relevant matters in respect of which a relevant pension is payable,

(f) any percentage, rate or index set under section 69A(7) and the relevant matter to which it relates, and

(g) any decision about resettlement payments under section 69D.

69F Supplementary remuneration reports

(1) After publishing an annual remuneration report but before publishing the next report, the Commission may prepare and publish one or more supplementary remuneration reports to the annual remuneration report (“a supplementary remuneration report”).

(2) The supplementary remuneration report may—

(a) vary the provision made in the annual remuneration report under section 69E(4);

(b) make any provision that the annual remuneration report could have made under section 69E(4).

69G Further provision about annual remuneration reports and supplementary remuneration reports

(1) Before publishing an annual remuneration report or a supplementary remuneration report under section 69E or 69F, the Commission must—

(a) send a draft of the report it proposes to make to—

(i) the Welsh Ministers,

(ii) the relevant authorities that are required or authorised by the Commission to make payment to their members in respect of relevant matters, and

(iii) such other persons as the Commission considers appropriate,

(b) publish the draft report as soon as practicable after sending it.

(2) When preparing an annual remuneration report or a supplementary remuneration report under section 69E or 69F, the Commission must take into account—

(a) the last annual remuneration report and any supplementary remuneration reports relating to the last annual remuneration report;

(b) representations received about the reports referred to in paragraph (a) and the draft reports referred to in subsection (1).

(3) The provisions of an annual or supplementary remuneration report under section 69E or 69F have effect on the date specified for that purpose in the report.

(4) But where a supplementary remuneration report contains provision made under section 69F(2) varying a provision made under section 69E(4)(a), (b) or (c), the supplementary remuneration report may specify that the provision is to be treated as having effect up to 3 months earlier than the date of publication of the supplementary remuneration report.

69H Directions to reconsider draft reports

(1) The Welsh Ministers may direct the Commission to reconsider a provision of a draft annual or draft supplementary remuneration report.

(2) A direction under this section must specify—

(a) the provision,

(b) the reason for giving the direction, and

(c) the date by which the Welsh Ministers require the Commission to respond.

(3) The Commission—

(a) must respond to the direction no later than the date specified in the direction;

(b) must not publish the report before responding to the direction.

(4) If the Commission decides not to vary the draft report in response to the direction, it must specify in its response the reason for its decision.

69I Commission’s publication and notification duties in relation to reports

(1) The Commission must not publish an annual remuneration report under section 69E before the end of the period of 12 weeks beginning with the day on which it sends a draft of the report under section 69G(1)(a)(i).

(2) The Commission must not publish a supplementary remuneration report—

(a) before the end of the period of 8 weeks beginning with the day on which it sends a draft of the report in accordance with section 69G(1)(a)(i), or

(b) later than the end of the period of 12 weeks beginning with the day on which it sends a draft of the report in accordance with section 69G(1)(a)(i).

(3) Subsections (1) and (2) are subject to section 69H(3)(b) (publishing of report permitted only if Commission has responded to direction).

(4) The Commission must publish each annual remuneration report, supplementary remuneration report, and draft report prepared under this Part on its website, and in any other way the Commission considers appropriate.

(5) Copies of anything published under subsection (4) may be supplied free of charge or on payment of such fee, not exceeding the cost of supplying the copy, as the Commission may determine.

(6) As soon as reasonably practicable after publishing an annual remuneration report or supplementary remuneration report, the Commission must notify the persons it considers likely to be affected by it of how they can access the report or obtain a copy of it.

69J Administrative requirements for relevant authorities in reports

(1) An annual remuneration report may include the Commission’s requirements for—

(a) avoiding duplication of—

(i) payments in respect of relevant matters, and

(ii) requests for payment in respect of the same relevant matters under section 69A(2)(a);

(b) keeping records of—

(i) requests for payments in respect of relevant matters;

(ii) payments made in respect of relevant matters;

(iii) payments made in respect of relevant pensions;

(iv) resettlement payments made under section 69D.

(2) An annual remuneration report must set out the Commission’s requirements in relation to how a relevant authority determines which relevant authority is required to make a payment in a case where a member of a relevant authority does something—

(a) for which a payment in respect of a relevant matter must be made, and

(b) which relates to another relevant authority (as well as the authority to which the member belongs).

69K Publishing requirements for relevant authorities in reports

(1) An annual remuneration report may set out the Commission’s requirements for relevant authorities to publish information about—

(a) payments made in respect of relevant matters;

(b) payments made in respect of relevant pensions;

(c) resettlement payments made under section 69D;

(d) other payments made to members of relevant authorities from other public bodies.

(2) For the purposes of sub-paragraph (1)(d), a “public body” is—

(a) a local health board;

(b) a police and crime panel;

(c) a relevant authority;

(d) a body designated as a public body in regulations made by the Welsh Ministers.

(3) The Commission may require different publishing arrangements to be made by authorities of different descriptions or different authorities of the same description.

69L Monitoring compliance with Commission’s requirements

(1) A relevant authority must comply with any requirement set out in an annual remuneration report or supplementary remuneration report.

(2) The Commission may monitor the making of payments by relevant authorities in respect of relevant matters; and may require a relevant authority to provide it with information about—

(a) the matters which are relevant matters in relation to the authority;

(b) requests to the authority for payments in respect of relevant matters;

(c) payments made by the authority in respect of relevant matters.

(3) The Commission may monitor the making of payments by relevant authorities in respect of relevant pensions and may require a relevant authority to provide it with information about—

(a) the members of the authority to or in respect of whom the authority is required to pay relevant pensions;

(b) payments made by the authority in respect of relevant pensions.

(4) The Commission may monitor the making of resettlement payments by local authorities and may require a local authority to provide it with information about—

(a) the former members of the local authority to or in respect of whom the authority is required to pay a resettlement payment;

(b) resettlement payments made by the local authority.

69M Directions to enforce compliance with Commission’s requirements

(1) If the Welsh Ministers are satisfied that a relevant authority has failed to comply with a requirement in an annual or supplementary remuneration report made under this Part, they may direct the authority to comply with the requirement.

(2) A direction under this section must specify—

(a) the requirement;

(b) the reason for giving the direction;

(c) the steps that the Welsh Ministers require the authority to take;

(d) the date by which the Welsh Ministers require the authority to take the steps.

69N Members wishing to forgo payments

(1) This section applies if a person elects, by notice in writing given to the proper officer of the authority, to forgo (either completely or to the extent specified in the notice) entitlement to payments in respect of the relevant matters, or resettlement payment, specified in the notice.

(2) The requirement imposed on the authority by section 69A and 69D to make payments specified in the notice does not apply in the case of that member (or does not apply to the extent specified in the notice).

(3) In this section “proper officer” has the meaning given in section 270(3) of the 1972 Act.

69O Withholding payments

(1) A relevant authority must not make payments in respect of relevant matters or a relevant pension to a person who is—

(a) suspended or partially suspended from being a member of the authority by virtue of Part 3 of the Local Government Act 2000 (c. 22) (conduct of local government members etc.);

(b) prevented from acting in the office of a member of a local authority in Wales under section 80A(6) of the 1972 Act (disqualification).

(2) A local authority must not make a resettlement payment to a person who is prevented from acting in the office of a member of a local authority in Wales under section 80A(6) of the 1972 Act.

(3) The Welsh Ministers may, in cases they consider appropriate, direct a relevant authority not to—

(a) make payments (including in respect of pensions) in respect of the relevant matters specified in the direction;

(b) make a resettlement payment.

(4) Before giving a direction under subsection (3), the Welsh Ministers must consult the Commission.

(5) A relevant authority may require a person to repay payments made in respect of relevant matters or a relevant pension to a person in respect of a period during which the person was not entitled to receive the payment for any reason, including (but not limited to) the following reasons—

(a) the payments were made in breach of subsection (1);

(b) the payments were made in breach of a direction under subsection (3)(a);

(c) the person had ceased to be a member of the authority.

(6) A local authority may require a person to repay a resettlement payment made under section 69D where the person was not entitled to receive the payment for any reason, including (but not limited to) the following reasons—

(a) the payment was made in breach of subsection (2);

(b) the payment was made in breach of a direction under subsection (3)(b).

69P Guidance

(1) The Commission may issue guidance to relevant authorities about how to comply with requirements imposed under this Part.

(2) The Welsh Ministers may issue guidance to the Commission about the Commission’s functions under this Part.

(3) The powers of the Commission and the Welsh Ministers to issue guidance under subsections (1) and (2) includes the power to vary or revoke guidance given.

(4) A relevant authority, or the Commission as the case may be, must have regard to guidance given under this section.

69Q Directions under this Part

(1) A direction given under section 69M and 69O is enforceable by mandatory order on the application of the Welsh Ministers.

(2) The power to give directions under this Part does not limit the general power of direction under section 14.

69R Power to modify provision

The Welsh Ministers may by regulations make modifications of this Part so as to add, vary or omit provision conferring or imposing a function on the Commission.”