Reform UK's councillor group on Rochdale Borough Council says all of its members have formally declined an increase in councillor allowances approved earlier this month.
The group said each of its councillors has notified the council that they will not accept the additional payment.
The decision follows a meeting of Rochdale Borough Council on 16 July, where councillors voted on proposals to increase members' allowances.
According to Reform UK, Labour councillors present at the meeting voted in favour of the increase, while Reform UK councillors voted against the proposal. The party said councillors from other political groups either voted against the measure or abstained.
Reform UK said each of its councillors has since written to the council's governance team to formally opt out of receiving the increased allowance.
Group leader Councillor John Taylor said, "Hard working families across Rochdale are having to make tough financial decisions every single day. The idea that local politicians should push through an increase in their own allowances, as Labour did at the full council meeting on 16 July, is completely out of touch with reality. We were elected to serve our community, not to line our own pockets.
"Reform UK voted against this increase in the chamber, and every single member of our group has now formally instructed council governance that we will refuse to take a single extra penny. We urge councillors from other parties to do the right thing and follow our lead."
The Reform UK group said it believes council resources should be prioritised for frontline public services and described its decision as part of its commitment to financial responsibility.
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