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Government to tell watchdog that MPs' pay rise is wrong Government tells watchdog that MPs' pay rise is wrong
(about 4 hours later)
The government will write to the Independent Parliamentary Standards Authority (Ipsa) to underline concerns over the body’s decision to increase MPs’ pay by £6,700 a year. The government has written to the Independent Parliamentary Standards Authority (Ipsa) to underline concerns over the body’s decision to increase MPs’ pay by £6,700 a year.
“We’re writing a letter to Ipsa to reiterate that we stand by the detailed submission we had already made to them last year saying we think this rise is wrong,” a Downing Street source said. “A pay rise of this nature at this time is not appropriate,” the letter from the leader of the House of Commons, Chris Grayling, reads.
MPs’ salaries are set to rise to £74,000 from the end of June, the same time the government is likely to announce departmental spending cuts. A spokesperson for the prime minister said it was not an appropriate time for MPs to get a pay rise. “[We] continue to believe that despite the welcome signs of progress, the continuing structural deficit shows the job is far from done,” the letter says. “The government has an ongoing commitment to responsible fiscal policy and returning the public finances to a sustainable position.”
MPs’ salaries are set to rise to £74,000 from the end of June, the same time the government is likely to announce departmental spending cuts.
David Cameron has been under mounting pressure to block an expected 10% pay rise for MPs after his Tory colleagues Nicky Morgan, the education secretary, and Eric Pickles, the former communities secretary, both said they would give the extra pay to charity.David Cameron has been under mounting pressure to block an expected 10% pay rise for MPs after his Tory colleagues Nicky Morgan, the education secretary, and Eric Pickles, the former communities secretary, both said they would give the extra pay to charity.
Downing Street argued on Wednesday that Cameron was opposed to the idea of a pay rise for MPs – something he described before the election as “simply unacceptable” – but it was beyond his control because the level is set by Ipsa.Downing Street argued on Wednesday that Cameron was opposed to the idea of a pay rise for MPs – something he described before the election as “simply unacceptable” – but it was beyond his control because the level is set by Ipsa.
A senior No 10 source said: “He’s an MP, so if Ipsa sets the pay for MPs he will take the pay that MPs get. The bit of pay that he controls, ministerial pay, there was a 5% cut in 2010 and a 10-year pay freeze.” The pay rise was first proposed in December 2013 by Ipsa, which was established in 2009 in response to the MPs expenses scandal to monitor politicians’ salaries and expenses.
The leader of the House of Commons, Chris Grayling, will write to Ipsa to formally reiterate the government’s opposition tothe decision. A senior No 10 source said: “[Cameron is] an MP, so if Ipsa sets the pay for MPs he will take the pay that MPs get. The bit of pay that he controls, ministerial pay, there was a 5% cut in 2010 and a 10-year pay freeze.”
Morgan, Pickles and three leading Labour party leadership candidates – Andy Burnham, Yvette Cooper and Liz Kendall – have all said they will not be taking the pay increase. Two cabinet ministers told the Telegraph anonymously that they would give the money to charity.Morgan, Pickles and three leading Labour party leadership candidates – Andy Burnham, Yvette Cooper and Liz Kendall – have all said they will not be taking the pay increase. Two cabinet ministers told the Telegraph anonymously that they would give the money to charity.
Cameron’s reluctance to turn down the pay rise is likely to be an attempt to keep his backbenchers on side, as his Commons majority of just 12 means he cannot afford to alienate many of them.Cameron’s reluctance to turn down the pay rise is likely to be an attempt to keep his backbenchers on side, as his Commons majority of just 12 means he cannot afford to alienate many of them.
The pay rise was first proposed in December 2013 by Ipsa, which was established in 2009 in response to the MPs expenses scandal to monitor politicians’ salaries and expenses.
The consultation document issued by the independent regulator on Tuesday claims that, due to cuts in pensions and expenses such as a ban on claiming for evening meals, the overall package of changes would not cost taxpayers “a penny more”.The consultation document issued by the independent regulator on Tuesday claims that, due to cuts in pensions and expenses such as a ban on claiming for evening meals, the overall package of changes would not cost taxpayers “a penny more”.
The document says: “We remain of the view that it is right to increase MPs’ pay to £74,000 for all the reasons we set out in December 2013 and which we summarise above.The document says: “We remain of the view that it is right to increase MPs’ pay to £74,000 for all the reasons we set out in December 2013 and which we summarise above.
“Subject to any new and compelling evidence arising from this review, we therefore intend to implement the determination as currently drafted, with a one-off adjustment in MPs’ pay to £74,000 and subsequently linking it to changes in average UK earnings for the remainder of this parliament.”“Subject to any new and compelling evidence arising from this review, we therefore intend to implement the determination as currently drafted, with a one-off adjustment in MPs’ pay to £74,000 and subsequently linking it to changes in average UK earnings for the remainder of this parliament.”
Under Ipsa’s proposals, Cameron would receive a 5% pay rise when his frozen ministerial salary is taken into account, with his total earnings increasing from £142,500 to £149,440.Under Ipsa’s proposals, Cameron would receive a 5% pay rise when his frozen ministerial salary is taken into account, with his total earnings increasing from £142,500 to £149,440.
Mark Serwotka, the head of the PCS union, called for similar pay rises for his members. “It would be grossly hypocritical for any MP who voted for years of pay cuts for public sector workers to accept a 10% increase for themselves,” he said.Mark Serwotka, the head of the PCS union, called for similar pay rises for his members. “It would be grossly hypocritical for any MP who voted for years of pay cuts for public sector workers to accept a 10% increase for themselves,” he said.
Ipsa argues that MPs’ pay has fallen over the years to 78% of the salaries awarded to equivalent roles in the public sector, such as top-tier civil servants, chief superintendents in the police and colonels in the armed forces.Ipsa argues that MPs’ pay has fallen over the years to 78% of the salaries awarded to equivalent roles in the public sector, such as top-tier civil servants, chief superintendents in the police and colonels in the armed forces.