Obviously what they mean here really is money for Labour councillors who have zero experience of the real world, don't have real jobs, and instead just do politics. After all, someone who is a Cabinet member for a local Council has an
When they get voted out they effectively become unemployed so the argument is that they should receive severance for it. Now, feel free to correct me if I'm wrong here, but being a councillor is about doing something voluntarily for your local area. It is not a career, and, if you're too stupid to get yourself a proper job in addition to the 10 meetings you have to go to each month, then frankly you don't deserve a penny.
You especially don't deserve to be paid when you are voted out because the electorate doesn't want you anymore. Why should the people that vote someone out because they have failed then be expected to foot the bill for their failure? Normal people have to go on the dole, so should ex-councillors.