Council approves £360,000 deal for director despite public outcry

East Riding Council's Tory cabinet voted to make the discretionary payment into director of corporate resources Sue Lockwood's pension fund at a behind-closed-doors meeting in Beverley yesterday.

Councillors had been asked to reconsider the "immoral" decision but in the event just one Conservative, Matthew Grove, voted against.

Miss Lockwood, who is in her mid-50s, and other senior officers were controversially awarded a large backdated pay rise just over a year ago. Figures released by the Taxpayers Alliance show her total remuneration package increased by 21 per cent to 135,646, in 2008 to 2009. At the time councillors defended the decision saying the rises were to "recruit and retain" staff.

East Riding councillor Mark Preston, an Independent Tory and one of the five councillors to sign the "call in" request, accused East Riding Conservatives of bringing the Tory Party into disrepute.

The Tories have pledged to put a cap on the biggest government pensions, including those for senior civil servants, council executives and quango managers, if they win the election.

Coun Preston said: "It is like asking every single taxpayer to put 1 into Sue Lockwood's pension pot. I am ashamed they are in the same party that I am.

"The cabinet could have referred this decision to full council, which I am sure would have voted against the discretionary payment in the current economic climate, as it is totally unjustifiable both morally and financially.

"Residents see potholes, under spending in areas like the elderly, education and social services, but payments into public service fat cat pension funds."

Andrew Allison, of the Hull and East Riding branch of the Taxpayers' Alliance, said: "I would challenge them to go out on the doorstep and speak to the ratepayers and justify the decision they have made. It's the elections next year and some might find it difficult to get themselves re-elected."

Conservative parliamentary candidate for West Hull and Hessle Gary Shores, who is also an East Riding councillor, said: "I think it is a deplorable waste of money. The public are being asked to tighten their belts and at County Hall they are having to keep an eye on every penny they spend.

"It was only the other year they that they were given a pay rise because they were deemed indispensable and now she's being pensioned off early," he said.

"This is a disgrace, a waste of public money.

"If she wants to retire early we shouldn't have to foot the bill."

The council introduced the discretionary scheme in 1999. Last week council leader Steve Parnaby, who has defended the payment, said the scheme should be reviewed as a matter of urgency, because of staff "uncertainty."

New applications for early retirement will be put on hold pending the result of the review, though current applications will be considered.

The "call-in" request was made by councillors Steve Sloan, Lib Dem; John Whittle, Independent; Keith Moore, Labour; John Bird, Lib Dem, and Pat O'Neil, Labour, as well as councillor Preston.

In just eight months last year the council spent more than 1.1m on 19 early retirements.

Of these 12 were awarded on the basis of ill-health.

But by far the largest sum, 661,166 was spent on five people who left under the so-called 85-year rule.

Last night, no one was available to comment from East Riding Council.