Latest Public Sector News

09.12.13

MP pay rise condemned by party leaders

A pay rise for MPs would be “wholly inappropriate”, Danny Alexander, chief secretary to the Treasury, has warned.

The Independent Parliamentary Standards Authority (Ipsa) is expected to announce an 11% pay rise on Thursday, increasing MPs’ basic pay to £74,000 from May 2015. The changes would also see some allowances scrapped and pensions downgraded from a final salary scheme to one based on a career average.

After 2015, MPs’ salaries would then rise in line with average UK earnings. MPs’ contributions to pensions are expected to increase and benefits such as dinner allowance, taxi use in the day, claims for tea and biscuits, TV licences and contents insurance will no longer be provided.

Ipsa has full statutory control of MPs’ pay and pensions, and does not need parliamentary approval to enforce the changes.

Prime minister David Cameron and Labour leader Ed Miliband have spoken out against the proposals, which are sure to be deeply unpopular with taxpayers.

Alexander said: “I think most people will find it utterly incomprehensible that a time of pay restraint for the public sector and further squeezes on Government spending that IPSA should be recommending [a pay rise]. I think it would be wholly inappropriate to get such a large pay rise when every other public sector worker sees pay rises capped at 1%. Personally, I wouldn’t accept it.”

Public and Commercial Services union general secretary Mark Serwotka said: “That an 11% pay rise is even being proposed, when living standards for everyone else are falling and poverty is rife, shows a political class wildly out of touch.

“Any MP that thinks this increase would be anything other than a complete scandal should seriously consider their position.”

Those who do agree with the proposals argue that MP pay has fallen behind that of head teachers, doctors and council leaders, and could deter a wider range of people starting careers in politics.

Tell us what you think – have your say below, or email us directly at opinion@publicsectorexecutive.com

Comments

Lawrence   09/12/2013 at 11:59

We`re all in this together eh!!!!!!!!! The greed is good brigade strike again.

Mark   09/12/2013 at 12:12

This is unbelieveable!! and unthinkable!! an 11% pay increase for withdrawing public services to the vulnerable and only a 1% pay increase for local government workers in the past 5 years? I am in the private sector and have seen my pay decrease by over £10k in the last few years. This is dispicable. No wonder people do not trusts or like politicians - jobs for the boys who are out of touch in so many ways. .

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