Members of Parliament (MPs) are set to receive a 2.8% pay increase this year, elevating their annual salaries to £93,904, just under £94,000. The Independent Parliamentary Standards Authority (Ipsa), responsible for MPs’ pay since 2011, announced the rise, stating it reflects the “vital role” of MPs and aligns with public sector pay trends.
This pay adjustment comes at a time when MPs are preparing to vote on significant welfare benefit cuts. The proposed changes, introduced by Work and Pensions Secretary Liz Kendall, aim to reduce the UK’s welfare expenditure by £5 billion by 2030. A substantial portion of these savings is expected to result from raising the qualification threshold for Personal Independence Payments (PIP), potentially affecting around one million disabled individuals.
The timing of both the pay rise and the welfare cuts has drawn sharp criticism. John O’Connell, Chief Executive of the TaxPayers’ Alliance, remarked that the pay increase is a “bitter pill to swallow,” especially considering the government’s record-high tax burden, persistent inflation, and struggling public services. He suggested that MPs’ pay should be linked to the country’s economic performance, ideally measured by GDP per capita.
Charities, trade unions, and some Labour MPs have condemned the welfare changes as “immoral.” However, there has been some support for aspects of the proposal, such as not freezing PIP levels and ending regular assessments for individuals with severe disabilities.
Since Ipsa’s establishment in 2011, MPs’ salaries have increased from £79,468 at the start of the last Parliament in 2019 to the proposed £93,904. While the current inflation rate stands at 2.5%, the Bank of England forecasts an increase later this year, making the 2.8% pay rise slightly above inflation.
Ipsa’s chairman, Richard Lloyd, defended the pay rise, stating it reflects the experience of the wider public sector and acknowledges both MPs’ essential role and the current economic climate.
The debate over MPs’ pay and welfare benefit cuts highlights the ongoing tension between government austerity measures and public sector compensation, set against the backdrop of a challenging economic environment.
