MPs believe salaries should be higher

Two-thirds (69%) of MPs questioned think they are underpaid, according to a report by the Independent Parliamentary Standards Authority (IPSA).

Its report, Reviewing MPs’ pay and pensions, is the result of the first public consultation on MPs’ pay and pensions.

The report also confirmed that MPs’ pay will increase by 1% in 2013 and 1% in 2014, in line with the rest of the public sector. MPs have been subject to a pay freeze since 2010.

The report identified the key areas for IPSA to focus on in coming months as it reviews MPs’ remuneration, including: comparisons with other jobs, affordability, public opinion, what the connection should be between pay and pensions, and whether to move to a career average pension scheme, in line with the rest of the public sector.

Following the consultation, which opened in November 2012, the IPSA does not think that performance-related pay, regional pay or pay that reflects outside earnings warrant further consideration.

The report also found:

  • On average, MP respondents said their salary should be £86,250.
  • 36% said they should receive a career average pension.
  • 35% said they should retain their final salary pension.    

Ian Kennedy, chair of the IPSA, said: “In the past, MPs have agreed their pay and pensions among themselves.

“So this new approach of independent decision making marks a real and important change, and is another crucial step in helping Parliament to regain the trust of the public.

“The consultation we held over the autumn has been hugely informative and important in directing our thinking. It also serves to show the spread of views and depth of feeling on this issue.  

“We remain committed to listening and I would urge people to get involved in this debate.”

IPSA will continue its analysis of the issue before publishing proposals in the spring, upon which it will consult.

It also plans to publish details of the new MPs’ remuneration package in autumn 2013, to take effect from the next Parliament in 2015.