Oldham Council has confirmed that a payroll error resulted in £107,111 being paid to current and former councillors when those sums should not have been disbursed, a report to the authority's audit committee has revealed.
Scale of the mistake
The issue affected 89 councillors in total. Of those, 76 received more than they were entitled to while 13 were underpaid. The council says the problems arose from failings in staff processes rather than decisions by elected members.
- Total incorrect payments: £107,111
- Councillors affected: 89 (76 overpaid, 13 underpaid)
- Notable individual overpayments: four councillors received more than £5,000 each
Among those overpaid were prominent figures whose additional sums have since been addressed. Ex-leader Arooj Shah was paid an extra £5,072; Abdul Jabbar an additional £5,161; Marc Hince £6,934; and Junaid Hussain £8,461. The report states these larger overpayments have now been settled either by full repayment or by agreement on a repayment plan.
Why it happened
The council's report attributes the errors to weaknesses in internal systems and record-keeping. Specific causes included inaccurate allowance rates being applied and insufficient audit trails when payments were set up and processed. The authority made clear that once the councillor allowance scheme is approved, the administration and application of payments lie with officers.
“A series of actions have since been implemented to strengthen governance and reduce the risk of recurrence. These include the introduction of clear rules for payment start and end dates, improved processes and audit trails between services, independent verification of allowance rates, increased communication with members, and the establishment of regular quality assurance.”
What the changes mean for Oldham
The measures the council lists aim to prevent a repeat of the problem by tightening controls across the payroll and member services. For residents, the key question will be whether these steps restore confidence that public money is being managed properly. The report makes clear the council regards the matter as a staffing failure and not the responsibility of councillors themselves.
| Category | Number |
|---|---|
| Overpaid councillors | 76 |
| Underpaid councillors | 13 |
| Total incorrect payment | £107,111 |
Audit committee papers show some overpayments were relatively small — around £1,000 for 38 councillors — while a handful were substantially larger. The council says a programme of governance improvements has been put in place and that increased checks and clearer rules should reduce the risk of similar errors.
