MPs set to pocket controversial 10 per cent increase in salary

The Houses of Parliament in Westminster, central London, as David Cameron is braced for a major backlash today as the MPs' pay watchdog awards them a big hike.
The Houses of Parliament in Westminster, central London, as David Cameron is braced for a major backlash today as the MPs' pay watchdog awards them a big hike.

Free seminar prepares for post-Brexit budget

  • MPs will take home £74,000 a year following consultation over proposals
  • 10 per cent increase comes despite government pushing on with austerity measures
  • Local MPs were split over issue
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MPs are set to get a controversial 10 per cent pay rise despite a widespread backlash over the proposal.

The Independent Parliamentary Standards Authority confirmed today members will have their salary bumped up from £67,060 to £74,000 as part of a package of changes.

In making this decision, we are very aware of the strongly held views of many members of the public and by some MPs themselves.

IPSA’s chairman, Sir Ian Kennedy

The pay rise will be backdated to May 8, and MPs’ pay will then be adjusted yearly in line with average earnings within the public sector, rather than being linked to the whole economy as previously announced.

IPSA, which has a statutory duty to review MPs’ pay in the first year of a new parliament, carried out a consultation over the plans last month.

Local MPs have been split over the issue - with both of Portsmouth’s MPs s Penny Mordaunt and Flick Drummond saying their 10 per cent share will go to worthy causes. Others, including Havant MP Alan Mak and Meon Valley MP George Hollingbery, have said they will take theirs as it’s out of their control.

As part of the revised financial package, MPs can no longer claim for the costs of hospitality, evening meals, taxis home from Westminster when working late (unless the House sits after 11pm), and home contents insurance.

Today’s announcement follows three consultation exercises since 2012.

IPSA’s chairman Sir Ian Kennedy said: ‘Parliament gave IPSA the power to deal with the vexed issue of MPs’ pay – independent of parliament and government.

‘Pay has been an issue which has been ducked for decades, with independent reports and recommendations from experts ignored, and MPs’ salaries supplemented by an opaque and discredited system of allowances.

‘We have made the necessary break with the past.

‘We have created a new and transparent scheme of business costs and expenses, introduced a less generous pension scheme, where taxpayers contribute less and MPs make a higher contribution, and scrapped large resettlement payments.

‘We have consulted extensively on MPs’ pay, and with today’s decision we have put in place the final element of the package for the new parliament.’

‘In making this decision, we are very aware of the strongly held views of many members of the public and by some MPs themselves.

‘We have listened to those views.

‘We have made an important change to the way in which pay will be adjusted annually.

‘Instead of linking MPs’ pay to wages in the whole economy, it will be linked to public sector pay.’

Over the last Parliament, MPs’ pay increased by 2 per cent, compared to 5 per cent in the public sector and 10 per cent in the whole economy.

He adds: ‘It is right that we make this one-off increase and then formally link MPs’ pay to public sector pay.’