Sir Sadiq Khan will be in line for a gold-plated pension under Labour plans to recognise his “vital public service”.
The Mayor of London is expected to be granted access to a guaranteed, inflation-linked retirement scheme as part of government proposals to extend the Local Government Pension Scheme (LGPS) to more than 16,000 elected councillors. The move, reported by The Sunday Telegraph, would cover 10 regional mayors, including Sir Sadiq.
The proposals, announced by Communities Secretary Steve Reed in September, are now out for consultation. Sir Sadiq, currently in his third term at City Hall, is enrolled in a less generous pension scheme. On his £170,282 salary, City Hall pays £20,400 in employer contributions for 2025/26, while he contributes £19,400 personally.
One year of contributions under the existing system would provide an inflation-linked retirement income of about £2,500. Under the proposed LGPS expansion, the same year would generate a yearly income of £3,475.
The LGPS is widely regarded as a “gold-plated” pension because it guarantees an inflation-protected income for life. Councillors and mayors previously had access to it, but the Conservative government removed this in 2014 during the austerity period. Labour intends to restore eligibility as part of wider reforms to local government.
Announcing the decision at Labour’s Party Conference in September, Mr Reed told delegates he had been “outraged” when the Tories scrapped councillors’ entitlement to the scheme. “I am proud as can be to announce today the reversal of that decision – you deserve it,” he said.
The Local Government Association welcomed the move. A spokesperson said: “Councillors work very hard to represent their communities, sacrificing working hours and family time to carry out their role.
“Fair remuneration, including pension provision, is vital so that people from all walks of life feel able to stand for public office. Reinstating councillors’ access to the Local Government Pension Scheme is an essential step in recognising their dedication and service to their communities.”
