IPSA’s False Deal

IPSA have confirmed their recommendation to whack up MPs’ pay to £74,000. Their reforms in full:

  • A one-off uplift in salary to £74,000 in 2015, an increase of 9.26%, to address the historic shortfall. Thereafter, MPs’ pay will be linked to average earnings – if they go up, so will MPs’. If they don’t, neither will MPs’.
  • A new pension on a par with those in other parts of the public service, saving the taxpayer millions. Following public consultation on our proposals from earlier this year, we have decided to increase MPs’ pension contributions further, reducing the cost to the taxpayer even further.
  • Scrapping out-of-touch “resettlement payments” worth tens of thousands of pound per MP. These will be replaced with more modest loss-of-office payments, which will be available only to those who contest their seat and lose.
  • A tighter regime of business costs and expenses, including ending the provision for evening meals.

IPSA seem to be taking the approach that they have to come to some sort of deal with MPs; that if MPs agree not to fiddle their expenses, sign up to a more reasonable expenses regime, increase their contribution towards their gold-plated pensions and give up their resettlement payments, then they can have a pay rise. This is a false offer. There is absolutely nothing to stop IPSA toughening up on expenses and pensions and ditching the resettlement grant with no pay rise sweetener attached. The only ‘deal’ on the table should be that all these things happen without the condition of a pay rise…



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Quote of the Day

Janan Ganesh on Labour’s soft left

“Ms Cooper does not believe the previous Labour government was wrong to run a fiscal deficit after 15 years of economic growth. Both she and Mr Burnham think families should be entitled to tax credits for a third child. These views are not mad. They are just a bit too left-wing for Britain. For any serious party, that amounts to the same thing. The soft left is more electable than the hard left but then Mars is more habitable than Neptune: neither planet will host human life anytime soon.”

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