CAERPHILLY council has agreed to resolve the controversial issue surrounding the buy-out of senior officers’ essential car user and annual leave allowances – which were deemed unlawful.

The Wales Audit Office (WAO) said the council had dealt with the harmonising of these allowances which were unlawful, but no criminal proceedings will take place following an investigation by the police and the Crown Prosecution Service.

In March 2012, the majority of council staff who previously received essential user payments (a monthly payment in return for the authority requiring that they provide a car for use on council business) lost those payments.

A report presented to members at a full council meeting earlier this week explained how, in order to harmonise terms and conditions for the majority of staff, the removal of essential user payments was extended in 2012 to senior staff. A decision was made that, instead of offering three years protection as had been offered to other staff who had been subject to single status, a one-off payment (equivalent to the same three years protection principle that was given to other staff) would be offered to ‘buy out’ the allowance instead.

The WAO said these decisions were unlawful on several procedural grounds.

The council have now decided to begin to negotiate harmonisation with the few remaining staff who did not agree to the changes made in 2012.

Council leader Cllr Keith Reynolds said he hoped the decision would “draw a line under the whole thing”.