Following the campaign by Guido and the TaxPayers’ Alliance for performance-related pay for politicians, IPSA has finally woken up to anger about the current system. The quango is consulting on new temporary measures to adjust MPs pay in line with ‘economic data’ – instead of relying solely on the public sector pay metrics which sees politicians gifted almost automatic rises in times of recession. Rises they know they can’t accept and often wish they were never offered…
Under the proposed changes, independent measures like GDP per capita could be used to revise down the pay recommendations. We should be rewarding politicians based on all our standard of living, not just the rises enjoyed by judges and generals. Bringing MPs remuneration much more into line with the financial struggles of the majority of their constituents. Guido’s friends at the TaxPayers’ Alliance would encourage anyone who wants to see their MP’s pay become performance-related (even if only until 2024) to have their say in the consultation here…
Following the recent decision to freeze MPs pay there was some little noticed polling this week, which shows that the public think MPs are overpaid and by a massive margin think they should actually see their pay cut. Nearly two-thirds (61%) want to see their pay cut with only 39% thinking MPs should be paid the same as now or more according to a survey by Opinium for Times Radio . Guido thinks this adds to the case for MPs getting performance related pay…
The same polling shows that when asked how much they think MPs should be paid, most voters wanted MPs’ pay to be halved:
Guido thinks that when IPSA comes back in the new year to consider MPs pay, performance benchmarking has to be on the agenda. The public certainly agrees…
IPSA has finally announced they won’t be giving MPs a pay rise next year as originally planned, writing to MPs to inform them:
“The unprecedented impact of the Covid pandemic has had an unexpected, but different, effect on public and private sector earnings. It is clear that applying the forthcoming official statistic for public sector earnings growth would result in a salary increase for MPs that would be inconsistent with the wider economic data and would not reflect the reality that many constituents are facing this year.
The IPSA Board has therefore decided that the salary for Members of Parliament will remain unchanged for the financial year 2021-22.”
Responding to IPSA’s announcement of a pay freeze for MPs, the TaxPayers’ Alliance’s John O’Connell says:
“This victory for common sense is an early Christmas present for taxpayers. With the public finances in such a dire state, many public sector salaries have rightly been capped – so it’s only fair that politicians’ pay rises are also postponed. But if IPSA really wants parliament to deliver for the British public, MPs’ pay should be linked to the country’s economic performance.”
Co-conspirators who took the time to respond to IPSA’s public consultation can be well pleased.
Guido exclusively brings you the IPSA letter in full:
As Guido discussed in last week’s podcast, the solution to the ongoing MP pay row doesn’t require parliamentarians once again controlling their own pay policy; just demanding a new mechanism for formally rejecting proposed pay rises from IPSA. While this solution isn’t yet on the cards, Guido has now discovered this exact proposal is being driven forward by IPSA in a new approach to MP’s staff pay. Buried in an ongoing consultation document they propose:
“MPs would have the ability to opt out of the automatic arrangements, for example, where a pay increase may not be appropriate in a particular case.”
IPSA acknowledges “This would allow for the appropriate level of flexibility in these circumstances”. If the body can fathom MPs being able to put the brakes on their staffs’ automatic pay rises, there is no reason IPSA can’t include such a proposed mechanism in their current MP pay consultation. At this rate MPs stand to lose their staffs’ support, as well as that of the public…
Alongside submitting personal pledges to Guido, 52 Tory MPs – spearheaded by much of the 2019 intake – have written to the Interim chair of IPSA this afternoon calling on MPs’ pay to be frozen.
They correctly assert, “when so many of our constituents are facing uncertainty, it is only right that we help shoulder the burden. As such, we sincerely hope that you will take current circumstances into account and scrap the proposed pay rise for Members of Parliament.” It’s all very well, however MPs should not have to beg an unelected bureaucrat to do the right thing – there should be legislation brought forward by the government that puts into law the ability of MPs to reject rises…
Mansfield’s Ben Bradley is the first* MP to publicly pledge that “if the rumours on a public sector pay freeze are true (and I don’t know whether they are) then needless to say that should include MPs too.”
Jacob Young, the MP for Redcar & Cleveland, says that if the Chancellor “says public sector workers are getting a pay freeze – then I want to be clear, that must include MPs.”
Guido will be contacting MPs to see if who will pledge to freeze their pay in solidarity with the public sector. Ideally the government should find time to simply amend the legislation so that IPSA’s pay rise recommendations can in future be rejected by a straightforward vote on the floor of the Commons. MPs can stop this faux wringing of hands as their pockets are filled with inflation busting pay rises…
In the long term Britain should move to a Singaporean style model for MPs pay – salaries are performance-linked, to ensure that political leaders are accountable for their roles and responsibilities. Pay is benchmarked against high calibre earners’ incomes, then discounted 40% for public service. MPs are paid performance related bonuses on top, with the salaries linked to the socio-economic outcomes of Singaporeans. British MPs’ pay could do with linking to the general prosperity of their voters, the people whose interests they are supposed to represent. If the people prosper, MPs’ pay will rise.
Guido is compiling a tally of MPs who are refusing a pay rise. Are you an MP without their snout in the trough? Email Guido from an @parliament.uk account or with a link to a public statement to join the list of non-wronguns…
