Senedd members' pay to rise by 2.4% in May

A freeze on Senedd members' salaries because of coronavirus will end at next year's elections under new plans.

An independent body responsible for deciding how much Cardiff Bay politicians earn has recommended a rise of 2.4% in May.

It amounts to an increase of £1,624 on the basic salary of a Member of the Senedd (MS), bringing it to £69,273.

Future pay rises would also be capped at 3% under the changes, which have gone out to consultation.

Senedd members pay was frozen in 2020, with a planned 4.4% increase scrapped.

The Independent Remuneration Board, which acts separately of the politicians in the Welsh Parliament, said at the time it was "difficult to justify" the rise given the poor economic outlook caused by the Covid-19 pandemic.

But in a review the body says that continuing to freeze pay for the next Senedd term "will no longer fairly reflect the role" and could result in the need for a significant increase in salaries.

It has proposed that the system used prior to the freeze - indexing wages to the annual survey of hours and earnings (ASHE) in Wales - continues after the May elections.

If salaries had not been frozen the basic salary at the start of the new Senedd would have been £72,321.

Some MSs with extra responsibilities receive larger salaries.

Under the changes, the first minister would receive £151,535, his ministers would get £108,238, and deputy ministers would receive £92,003.

Chairs of committees get either £83,344 or £78,647, depending on the committee, while the presiding officer will be paid £92,003.

Political leaders of parties not in government would receive between £86,590 and £108,230, according to how many members they have in their group.

The ASHE index reflects changes in salaries in Wales, but the board said the index is more "prone to annual fluctuations" in Wales due to the smaller sample size.

Because of this, it proposed in future that members' salaries will not increase above 3%, or decrease below 0%.

"This will avoid the risk of salary increases being applied in future that are disproportionate in the context of the economic conditions at the time," the board said in its review.

"In the board's view, this is fair both to members and to the Welsh taxpayer."

Board chairwoman Dr Elizabeth Haywood said: "The exceptional circumstances of the coronavirus pandemic mean the board did not think it reasonable for members to see their pay rise by 4.4% this year while many people in Wales were furloughed or losing their jobs, and there was such uncertainty in the economy.

"But the board has to set an index for the whole five-year term of the sixth Senedd, and we are proposing to return next year to linking Members' pay to the average earnings of Welsh workers."