Access to the Local Government Pension Scheme for councillors in England

From April 2003, regulations were introduced allowing councillors to be members of the Local Government Pension Scheme (LGPS) at the discretion of the local authority. This provision was introduced by the Labour Government on the basis that many councillors had lower occupational or personal pensions than they would otherwise had, as a result of their commitment to their duties as a councillor. Allowing access to the LGPS was intended to address this disincentive from serving in local politics. (HC Deb 7 April 2003 c8WS).

In December 2012, the current Government proposed that there would be no access for councillors to the LGPS in England from April 2014. Its argument was that councillors were volunteers, who received allowances to compensate for ‘out-of-pocket’ expenses. They were not “full-time politicians, nor should they be encouraged to become so” (HC Deb 19 December 2012 c105-6WS). The vast majority of respondents to the consultation, many of whom were councillors, said they were opposed to change. However, the Government decided to exclude any new membership from April 2014. Access for existing councillors would end with their current fixed term of office (for example, from May 2014). (HC Deb 11 March 2014 c13-15WS).