MPs' Pay: Watchdog To Propose Rise To £75,000

MPs can expect a major public backlash later when proposals to give them a pay rise of up to £10,000 are unveiled.

The Independent Parliamentary Standards Authority (Ipsa) is expected to propose a rise to around £75,000, but recommend a crackdown on MPs' perks such as claiming dinners on expenses.

The MPs' existing final salary pension scheme is also set to be downgraded to a career average system, clawing back some of the millions of pounds in extra salary.

Ipsa chief Sir Ian Kennedy is likely to argue that overall the new package will only be a few hundred thousand pounds a year more costly for the public purse.

But the prospect of an inflation-busting pay rise for MPs is certain to spark public fury with memories of the 2009 expenses scandal still fresh in many voters' memories and millions of workers facing austerity measures.

It will also be condemned by leaders of trade unions whose members have been subject to a pay freeze or a 1% cap in pay rises that has been imposed on most public sector workers.

Already, David Cameron, Ed Miliband and Nick Clegg have urged restraint and are widely expected to reject the extra cash themselves and urge their backbenchers to do the same.

However, they would need to change the law to prevent Ipsa pushing the rise through, and such a move may run into trouble, since many backbenchers believe they are underpaid.

Few MPs, however, are prepared to argue publicly for a big pay rise. And the Government Chief Whip, Sir George Young, this week ordered Conservative MPs not to respond to a Sky News survey.

Among those who did respond was one veteran Labour MP who said Sir Ian's package was "deliberately provocative". Another Labour MP said: "Whatever we do is wrong."

One Tory ex-minister said he would not accept the proposed pay rise. But a former Conservative Cabinet minister told Sky News setting pay too low would mean that only the rich could afford to stand for Parliament.

The proposals being unveiled are expected to see a 12% rise from the current level of £66,000, to take effect after the general election in 2015.

But £15 expenses available for dinner when the House sits beyond 7.30pm will be scrapped - saving hundreds of thousands of pounds a year.

There could also be tighter rules on using taxis and restrictions on claiming running costs for second homes such as contents insurance.

The notorious "golden goodbye" resettlement grants of up to £65,000 that used to be handed to departing MPs will not be brought back.

Instead, MPs defeated at an election could be entitled to redundancy similar to other public sector organisations.

The proposals will go out for consultation before Ipsa finalises the arrangements in the autumn.

A senior Labour source said: "Our view is clear that any decision about MPs' pay must reflect wider economic circumstances and what is happening in the rest of the public sector.

"It must be consistent with what is happening to nurses, teachers and others in the public sector as well as conditions in the private sector."


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Does anyone know the MINIMUM wage for the UK