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MPs bust their own pay cap as salaries rise again to £75,000 a year

Politics

MPs bust their own pay cap as salaries rise again to £75,000 a year

MPs' salaries will rise by 1.3% from April to £74,962, the Independent Parliamentary Standards Authority has announced. The £962 increase comes nine months after politicians received a backdated boost to £74,000. The deal is likely to anger workers in the public sector, where pay rises are capped at 1%. But IPSA said MPs' salary rises were now linked to Office for National Statistics figures on public sector earnings, which was inflated marginally by bonuses and promotions.

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

IPSA chairman Sir Ian Kennedy defends the new rise

IPSA has faced widespread criticism of its handling of the issue of MPs' pay. The organisation introduced an initial 10% rise last year because it said pay for MPs had dropped behind the rest of the public sector. In the run-up to the election, David Cameron threatened to scrap Ipsa unless it backed down but quietly dropped the issue when he was returned to office. However, the latest rise will reignite the debate with Labour MP John Mann saying: "We shouldn’t be getting a rise that is bigger than anyone else’s. This will go down very badly with the public."

I’m concerned that yet again this looks like our pay is going up quicker than other public sector workers like police, nurses and teachers. If their pay is capped at 1 per cent, why shouldn’t ours be?

Labour MP Gloria de Piero

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I understand that this is obviously going to be a controversial issue at a time when public sector pay growth is to be capped at 1% for the next few years. I feel that this pay rise is long overdue and is essential to ensuring that our parliament is able to attract the best of us to become MPs. Since 2005 MPs pay has grown from just under £60000 to £65000, a rise of under 10%. During this same time average wages in the public sector have grown by around 25%, despite the 1% cap during the previous parliament - growth in the private sector has been even more robust. As a result the relative value of MPs pay has fallen significantly and this hinders the ability of parliament to attract top talent. This also increases the disproportionate amount of privately educated, Oxbridge graduates who come from wealthy backgrounds. To these people money is less important and status is very important, with a strong financial backing these graduates do not have to pursue a career in which their earnings potential would be highest, they can instead choose a career which elevates their status, something that is of great significance in their social circles. Therefore falling relative wages for MPs do not effect this group very much, however for those who don't come from wealthy backgrounds there is more of a need to maximise earnings potential - something which an MPs salary is increasingly unlikely to do. Falling relative wages make becoming an MP far less attractive to this group of people and they are likely to remain in employment elsewhere where they can earn far more. The consequences of this are clear, gone are the days of the prime ministers from relatively ordinary backgrounds; Thatcher and Heath both went to state grammar schools while Cameron and his ilk are Eton old boys. Raising MPs salaries opens the door for a more representative commons - something which you would expect people on the left to be arguing particularly strongly for yet these are the ones who are most opposed to the increase. Just goes to show left wing thinking is not joined up. In any case I do find it to be ridiculous that public sector pay growth is being limited to 1% a year while private sector pay growth is averaging between 4-5%. There will be a brain drain from the public sector and our services will suffer. Fund the increasing public sector pay by scrapping this absurd triple lock and allowing the inflated state pension to reduce relative to average wages and be brought back to reality.

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One rule for them? MPs get backdated 10% pay rise taking salary to £74,000

Politics

One rule for them? MPs get backdated 10% pay rise taking salary to £74,000

MPs are to get a 10% pay rise to £74,000 despite a 1% cap on the pay of public sector workers. The Independent Parliamentary Standards Authority (IPSA) announced the move in the face of fierce opposition from public sector trade unions as well as some ministers and MPs. David Cameron previously claimed the proposals were "unacceptable," but Downing Street admitted last month the Prime Minister would not attempt to block the move and would personally accept the money. The increase has been backdated to 8 May and any MP elected before 2015 will also see an increase to their pensions, which are linked to their basic salaries. Jonathan Isaby, chief executive of the TaxPayers' Alliance, said: "It is totally inappropriate for IPSA to be pushing forward with this pay hike."

I know I speak for the silent majority (who are not millionaires) to say this increase is well overdue.

Conservative MP Tobias Ellwood

Sir Ian Kennedy, the chairman of IPSA, said: "We have created a new and transparent scheme of business costs and expenses (and) introduced a less generous pension scheme, where taxpayers contribute less and MPs make a higher contribution, and scrapped large resettlement payments." IPSA declared last month that the plan would go ahead unless "new and compelling evidence" was submitted. The rise comes a week after Chancellor George Osborne announced further restraint on pay rises in the public sector and on the day Health Secretary Jeremy Hunt told hospital doctors they must work weekends. The issue has divided MPs, with many saying they would donate the rise to charity.

This is crazy. How on earth has David Cameron allowed this to happen?

Labour Party leadership hopeful Yvette Cooper

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