MPs are set to receive a 2.8% salary increase, raising their basic pay to £93,904 from April. The Independent Parliamentary Standards Authority (Ipsa), which oversees MPs’ pay, has said that the rise should reflect government plans for public sector workers like teachers and NHS staff. The pay deals for these workers are currently being negotiated with their unions, following recommendations from pay review bodies late last year. A final decision on MPs’ salaries will be made in mid-March, following a two-week consultation set to begin on Monday.
The recommended pay rise is higher than the current Consumer Price Index (CPI) figure for inflation, which currently stands at 2.5%. However, it is lower than the measure of public sector earnings that has typically been used by Ipsa in recent years to set MPs’ salaries. In September 2021, Ipsa announced it would link MP’s salary increases to average public sector earnings. Had this figure been used, MPs would have seen their salary increase 4.2% to £95,182.
In recent years, Ipsa has not always adhered to October earnings figures, and it has the flexibility to use other statistics if it prefers. Last year, Ipsa recommended a 5.5% rise, in line with the pay increase awarded to senior civil servants, after concluding that official pay figures did not adequately reflect underlying trends in public sector pay.
In the spring, Ipsa plans to launch a more comprehensive review of MPs’ pay that will determine the salary they will receive from April 2026 onwards. Among other things, this review will compare MPs’ pay with elected politicians’ salaries internationally. Ipsa was established in 2009 in response to the parliamentary expenses scandal to provide a more transparent and independent pay-setting process. MPs no longer set their salaries
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