In a significant move, members of the Law Society’s ruling council are set to receive an annual payment of £2,050, pending approval at the forthcoming AGM. This would mark the first occasion that council members receive this form of financial recognition since the previous allowance scheme was discontinued.
The proposed payment for the Law Society’s 97-member council is designed to accompany other expenses they incur. If ratified, this financial adjustment will initially result in a cost of £483,000 because payments will be retrospectively applied from March of the previous year. This change follows the cessation of the former allowance scheme due to alterations in tax treatment determined by HM Revenue & Customs.
Previously, council members received an allowance of £1,640 annually for expenses beyond direct costs. A spokesperson highlighted that the previous scheme’s total cost reached approximately £400,000 per annum, though it covered a larger group.
A working group, including six council members and chaired by Vice-President Richard Atkinson, proposed the new payment system. Their recommendation outlines that council members should obtain a payment, referred to as an allowance, in addition to reimbursement for direct expenses.
The distinction between council members and other society committees lies in the obligations and potential removal of council members, should they fail to attend three consecutive meetings without consent. Steven Mather, commenting on inaccuracies in representation, clarified the nature of these payments, emphasising they are not remuneration for time or salary but allowances for unclaimed expenses such as home office maintenance.
The allowance aims to encourage participation among diverse professionals, addressing financial barriers that may dissuade candidates from running for election. The scheme is also seen as vital to maintaining a relevant and representative council. Payments will be taxed at source but do not confer employment status on members.
The size and composition of the council remain contentious issues, having been stripped of regulatory power to a largely ceremonial role. The current structure includes geographical and practice-based seats, though two regional positions remain unfilled.
As the Law Society navigates changes to its council’s financial structure, this proposal represents a broader effort to ensure diversity and accessibility within its governance. The council’s decision at the upcoming AGM will be pivotal in setting a precedent for future involvement in the legal profession’s leadership.
