IPSA proposes £74,000 annual salary for MPs

The Independent Parliamentary Standards Authority (IPSA) has called for MPs pay to rise to £74,000 in 2015.

The proposed 9.75% increase, up from the current salary of £66,396, comes as the IPSA also launched a consultation on MPs’ pay and pensions.

The consultation, which runs until 20 October 2013, contains the following recommendations:

  • A salary of £74,000 in 2015, indexed to average earnings in the whole economy thereafter.
  • A new pension scheme that will be based on accruals at 1/51sts, revalued by the consumer prices index (CPI) each year, delivering defined benefits based on career-average salaries rather than final salaries.
  • Annual reporting by MPs of their activities and spending.

Sir Ian Kennedy, the IPSA’s chairman, said the package was fair to taxpayers and fair to MPs.

He added: This package ends the historic peculiarities that have grown up around MPs’ pay, and sets MPs’ pensionson a sustainable footing for the future.

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“We are recommending a modern, professional approach, which also means refining the rules on expenses and business costs to rule out MPs claiming for an evening meal.” 

MPs pay and pensions across countries