Independent Parliamentary Standards Authority (IPSA) confirmed today that MPs’
pay will rise to £74,000 as part of a package of changes to their remuneration.
The pay rise
will be backdated to 8 May 2015. 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 has a
statutory duty to review MPs’ pay in the first year of a new Parliament. We consulted
in June on our December 2013 determination to increase MPs’ pay. The one-off pay adjustment is part of a wider
remuneration package, which, apart from the pay rise, has already been
career-average pension, in line with other parts of the public sector. This came into effect on 8 May 2015.
Previously there had been a more generous final-salary pension.
end to generous resettlement payments.
cuts to expenses: 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.
announcement follows three consultation exercises since 2012.
Sir Ian Kennedy, said today:
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.
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.
last Parliament, MPs’ pay increased by 2%, compared to 5% in the public sector
and 10% in the whole economy. It is right that we make this one-off increase
and then formally link MPs’ pay to public sector pay.”
of the June 2015 consultation is included in a report published today.
Notes to editors
1 MPs are currently paid
2 The consultation paper,
“MPs’ Pay in the 2015 Parliament: A consultation” ran from 2-30 June 2015.
3 All future pay
settlements for MPs would move in line with average earnings across the public
sector, based on the October figures published by the Office for National
Statistics, and implemented the following April.
4 In 2010 MPs who left
Parliament for any reason were entitled to a resettlement payment up to 12
months’ salary - £65,738 (depending on their age and length of service). For an
MP who served two five-year terms (the average) and left Parliament at age 55,
this was £39,442. In the 2015 General
Election MPs who stood down received no resettlement payment. Defeated MPs were entitled to a resettlement payment
of one month for each year of service, capped at six months payment. At the next General Election MPs who stand
down will receive nothing, and defeated MPs will receive double the statutory
5 IPSA Press Office can be
contacted on 020 7811 6462.