Councillors in Wansbeck, Northumberland, have been awarded an increase in allowance money - despite allegations they are the highest paid councillors in the region.

The basic allowance rise from �2,125 to �3,114 has led to claims the extra money has taken the Wansbeck District Council �11,000 over budget.

The Labour group - who voted for the new payments - said the rise was lower than increases at most other local councils.

Labour spokesman Councillor Alan Douglas told BBC Radio Newcastle the allowances had been frozen for the last three years.

It is money already in the bank and it will not come out of this year's budget

Councillor Alan Douglas

The new rise will cost each voter 50p a year.

Councillor Simon Reed, deputy leader of the Liberal Democrat group, said: "The argument that it only costs voters 50p a year is not a very good argument at all.

"It is like me using the argument that if everyone in the world gave me a penny, I'd be a billionaire.

"Wansbeck councillors are already the highest paid district councillors in the North East."

"The basic allowance was a little over �2,000, now it has gone up to �3,000 per councillor.

"A number of councillors receive a special responsibility allowance that could take them up to �7,000 above the basic allowance.

"This rise takes us �11,000 over budget."

Average wage

Councillor Douglas said the rises would not come out of the council budget.

"It is money that has been saved from council allowances.

"It is money already in the bank and it will not come out of this year's budget.

"The decision to award the increase was not ours.

"It was done by an independent panel through interviews with councillors about their responsibilities.

"And they also looked at the average wage of white collar workers in the area."

A review from the independent panel which looked into the rises said: "The allowances have not been increased for three years which equates to an increase in real terms in line with average salary increases in the public sector over the last three years."