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Councillors across Wales could be in line for a £2,500 a year pay rise after next year’s election in a bid to attract candidates from “all walks of life”.

The Independent Remuneration Panel for Wales, which sets the salaries of councillors, has published a draft of its annual report for councils to consider. It wants a “reset” for Welsh democracy to “encourage a diversity of willing and able people”.

Councillors are paid a part-time allowance for their work representing their areas. This is based on a maximum of three days a week.

The current allowance for a backbench councillor (one that does not have an extra responsibility) is £14,386, but the Independent Remuneration panel for Wales has suggested an increase to £16,800.

The proposed pay rise is to ensure a councillor’s salary meets the average earnings of a person in Wales, with the aim of making the role more appealing.

The draft report states: “As a Panel our firm belief is that this is a reset moment for Welsh democracy and for valuing our public services; an important opportunity to future proof our democracy and public services. We have therefore taken time to engage with stakeholders, pause and reflect on the impact of the decisions we take and the messages we are communicating in making this year’s determinations.

“From inception, the Panel has consistently and vigorously expressed that local democracy and the governance of public services are not cost free and need to be valued if we are to enable everyone to participate. Levels of remuneration need to be set at a level sufficient to encourage a diversity of willing and able people to undertake local governance through elected, appointed or co-opted roles. It is important to promote a culture which encourages take up of remuneration to ensure that people from all walks of life can participate confidently in our democracy.”

Senior councillors could also see increases

Council leaders and other senior members could also see pay increases. In Caerphilly County Borough Council’s case, this could see the leader’s salary jump from £49,974 a year to £56,700.

The deputy leader would see an increase to £39,690 from £35,320, while cabinet members would go from £30,773 to £34,020. Committee chairs and leaders of the largest opposition group would get £25,593 – up from the current £23,161.

Councillors’ basic allowances are included in these figures.

The panel is currently consulting with councils on the proposals until November 26 and will publish its final report next year.

Any increases in allowances and salaries will come into effect after the council elections in May 2022.