Senior politicians yesterday condemned a “wholly inappropriate” plan to increase MPs’ pay by 11% as they sought to avoid a backlash from voters.
The independent body given responsibility for Westminster pay and perks in the wake of the expenses scandal is pressing ahead with plans to boost salaries by £7,600 – to £74,000 – after the 2015 general election.
That is significantly lower than the £86,250 average figure MPs told the Independent Parliamentary Standards Authority (Ipsa) they deserved in a anonymous survey earlier this year. A fifth of those questioned said they should get £95,000 or more.
But while a handful publicly defended the increase, prominent frontbenchers said the move was unacceptable when most public-sector workers were getting no more than 1% extra a year.
Chief Secretary to the Treasury Danny Alexander said the public would find it “utterly incomprehensible” if Ipsa defied concerted calls for restraint.
Defence Secretary Philip Hammond indicated that he would not accept the rise while armed forces’ pay was being pegged back – and suggested Cabinet ministers would agree a united approach.
But former Labour minister Jack Straw defended the move – to be confirmed on Thursday – saying the failure of MPs’ pay to keep pace with comparable public-sector jobs was deterring talented people of “modest backgrounds” from standing for election.
And Tory MP David Ruffley said he was “minded” to accept the rise so long as it was balanced by action to curb other costs to the taxpayer, such as an end to generous resettlement grants for departing MPs.
In an effort to mitigate the rise, Ipsa is believed to have also drawn up a tougher-than-expected squeeze on pension schemes, forcing MPs to pay in more and the taxpayer less, on top of a crackdown on claims for dinners, taxis and tea and biscuits.
Comment, Page 30