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| MPs given go ahead for 10% pay rise to £74,000 | MPs given go ahead for 10% pay rise to £74,000 |
| (34 minutes later) | |
| MPs' salaries will rise from £67,060 to £74,000, the Independent Parliamentary Standards Authority has announced. | MPs' salaries will rise from £67,060 to £74,000, the Independent Parliamentary Standards Authority has announced. |
| The 10% pay rise has been approved despite Downing Street and a succession of MPs saying it was "not appropriate". | The 10% pay rise has been approved despite Downing Street and a succession of MPs saying it was "not appropriate". |
| IPSA chairman Sir Ian Kennedy said that MPs' pay had been a "toxic" issue "which had been ducked for decades". | |
| He said the pay rise would not cost any money because it was being combined with cuts to expenses, pension and severance payments for MPs. | |
| The independent watchdog, set up to bring in and run a new expenses and pay system for MPs after the expenses scandal of 2009, says in future MPs' pay would rise in line with average rises in the public sector. | |
| That was a change from its earlier suggestion that their pay would be linked to average earnings, which is likely to be higher over the next five years. | |
| The measure being used by Ipsa has also been negative in the past as a result of job cuts - and the watchdog's report stated: "If these data show that public sector earnings have in fact fallen, then MPs' pay will be cut too." | |
| A number of MPs - including Education Secretary Nicky Morgan - have said they would give the money to charity, while Labour leadership contenders Andy Burnham, Yvette Cooper and Liz Kendall have said they would forego the rise. | |
| The then Education Secretary Michael Gove, now Justice Secretary, in 2013 said that Ipsa could "stick" their pay rise. | |
| The government formally expressed its opposition to an increase in a letter to the watchdog's final consultation on the plans last month. | |
| Sir Ian said: "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. | |
| "In making 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. | |
| "Over the 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." |