ASSEMBLY members elected in 2016 will be paid an extra £10,000, an independent panel announced today.

The remuneration board of the National Assembly for Wales announced its final decision after five years of discussions and reviews.

Board chairman Sandy Blair said the 18 per cent rise on the current £54,000 is to recognise how different the assembly will be after the 2016 election.

He said: "It will have law-making, tax-setting and borrowing powers like those of the UK and Scottish parliaments.

"I believe the work the board has done has produced a remuneration regime which is appropriate for the institution, and the increasing responsibilities which lie ahead."

The board's decision also included changes to the members' pension scheme which will reduce the contribution from taxpayers and members will contribute more.

Board member Mary Carter said this will save the taxpayer around £220,000 in the first year.

Board members denied that salary was the main deterrent of people who could be politicians standing for election and said it was also to do with well-being and quality of life.

Members will be able to claim up to £3,420 a year for overnight stays in Cardiff if they live away and can claim up to 12 journeys to Cardiff from their home for partners and children.

The board also agreed salaries for other posts including £140,000 for the first minister, £85,000 for deputy minister and £105,000 for the presiding officer.

Asked if more money should be an incentive for politicians, chairman Mr Blair: "It's not about incentivising through cash, it's looking at a way of valuing the level of responsibility. Its a way of securing that a wide range of people will come forward."

The board has also made changes to the way financial support is given to parties to ensure all parties receive a fair amount, even if there are more than four parties after the next elections.