MPs’ planned pay rise: how public sector pay compares

The recommendation by the Independent Parliamentary Standards Authority (Ipsa) to increase MPs’ pay by 10.3 per cent, which comes as public sector workers are limited to a one per cent pay rise, has been criticised by both sides of the House of Commons.

The frontrunners in the Labour leadership bid said they would not accept the pay rise, although Ipsa has previously said that MPs would have little choice in the matter because the money would be paid to them regardless.

Downing Street said a letter is being sent to Ipsa underlining the prime minister’s opposition to the move in the coming days.

Number 10 had indicated this week that it would not seek to block the increase, but the prime minister has come under increasing pressure to stand by his earlier criticism of the proposed pay rise, which Mr Cameron has described in the past as “unacceptable”.

A Downing Street source said: “We’re writing a letter to Ipsa to reiterate we stand by the detailed submission we had already made to them last year saying we think this rise is wrong.”

MPs are currently paid a salary of £67,060, which – under Ipsa’s proposals – would rise to £74,000. The body says that that reflects the increase in national average earnings up to 2015. It stressed that, due to cuts in pensions and expenses; such as a ban on claiming for evening meals, the overall package of changes will not cost taxpayers any more.

All MPs – including government ministers – would be subject to the pay rise, with any changes to the additional payments made to ministers being the government’s decision.

For the cost of increasing all 650 MPs’ pay, an extra 200 nurses or an additional 80 GPs could be hired.

Fully qualified nurses start on £21,692 and firefighters £28,766. Those salaries can rise as high as £55,000 and £98,452, respectively, for the few who reach the very top pay grades. Salaried GPs are paid between £55,412 and £83,617, while consultants earn between £75,249 and £101,451.

According to Office for National Statistics figures released in January 2014, real wages across the UK had averaged minus 2.2 per cent since the first quarter of 2010, meaning that people’s buying power decreased.

Charity donation

After trumpeting a “freeze” in ministerial pay last month, Mr Cameron is now in line for an effective five per cent bump in his total remuneration, from £142,500 to £149,440. Cabinet ministers’ overall pay will increase by 5.2 per cent.

According to Office for National Statistics figures released in January 2014, real wages across the UK had averaged minus 2.2 per cent between that point and the first quarter of 2010, meaning that people’s buying power decreased.

The row over the pay deal was triggered after Ipsa launched a final review of the plans, originally announced in 2013, declaring it could see no “material” reason to change them.

Unless a consultation produces “new and compelling evidence” by the end of the month, the move will be confirmed, with the rise backdated to the day after the last general election.

Education Secretary Nicky Morgan said she could increase the amount she gives to charity if the hike goes ahead, and a number of Tories are thought to be planning to donate the benefits. Others MPs are believed to have been asking Ipsa to introduce a mechanism that would allow them to “opt out” of the salary bump.