IPSA’s Imaginary Pay Problem


Writing in The Times this morning, IPSA’s Sir Ian Kennedy is adamant

ipsaWe will announce a one-off pay rise. Thereafter MPs’ pay will move with the pay of the rest of us. That’s a sensible way forward, which we will implement after a further review of conditions in 2015.

I know there is a tension between the reasoning and the politics but we were asked to fix the problem for a generation, not for a news cycle. That is what we have done. The alternative approach takes us back to the days of political deals, with scandal never far away. I can’t believe anyone seriously believes that is the way forward.

Of all the problems in politics, the problem of underpaid MPs is not one that Guido or the voters have noticed. MPs are paid a handsome £66,396, plus another £14,728 if they chair one of the 39 select committees. If they make it to Cabinet, the pay goes up to £134,565 — more than doubling their salary. They are paid a basic salary that puts them in the top income decile. For this, as Gordon Brown shows, they have to do nothing. They also get another £20,100 towards accommodation expenses. Hundreds of them are paid more as ministers or for having extra responsibilities – chairing committees. The average MP costs taxpayers over £100,000 in pay and personal expenses.

It is little acknowledged by IPSA that since 2000 MPs’ earnings have outstripped the consumer price index and since the 1980s their earnings have risen from double the average to the triple figure that they enjoy today. Although politicians are professionally skilled in advancing an argument, they will find it impossible to convince the public that they have gone from being worth twice the average wage to being three times as much. There is no lack of applicants for MPs’ jobs. There is no pay problem.



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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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