MPs are to get a 2.7 per cent pay rise next month after the watchdog declared that they have been working harder during the pandemic.
The Independent Parliamentary Standards Authority said politicians’ salaries will go up from £81,932 to £84,144.
Peers are likely to see their tax-free daily ‘attendance allowance’ increase by the same proportion, to £332.
Ipsa chair Richard Lloyd said it was important MPs are paid ‘fairly’, arguing their duties helping constituents ‘dramatically increased’ last year.
But Downing Street previously urged ‘restraint’ on MPs’ pay this year despite the cost of living crisis, while Keir Starmer has called for a freeze.
It means Commons salaries will be hiked at the same time as voters face a painful bump in national insurance and soaring energy bills.
Bank of England governor Andrew Bailey recently urged people not to push for big pay rises, despite energy costs going through the roof and fears inflation will soar even further to 7.25 per cent in April.
However, he was slapped down by No10, with the PM’s spokesman saying it is not for the authorities to dictate how private companies should pay their workers.
MPs are to get a 2.7 per cent pay rise next month after the watchdog declared that they have been working harder during the pandemic
Boris Johnson (right) has urged ‘restraint’ from the MPs’ pay watchdog over the mooted 2.7 per cent rise to more than £84,000 in April, while Keir Starmer (left) has called for a freeze
Announcing the rise today, Mr Lloyd said: ‘This is the first increase in pay for MPs in two years and follows the average of increases across the public sector last year. MPs play a vital role in our democracy and this is reflected in their pay.
‘It is right that MPs are paid fairly for the responsibility and the unseen work they do helping their constituents, which dramatically increased last year. For Parliament to reflect society, it is vital that people from all walks of life can be an MP.’
John O’Connell, chief executive of the TaxPayers’ Alliance, said: ‘Working households will be furious to see MPs’ pay go up while they face crippling tax hikes.
‘The current system of pegging politicians’ salaries to public sector pay only leads to rows over unpopular and unseemly rises.
‘Elected officials should show restraint and only accept rises when economic conditions allow.’
Ipsa was given control of politicians’ salaries after the credit crunch, and the watchdog has linked increases to changes in average public sector earnings for October.
The Office for National Statistics revealed in December that the figure was 2.7 per cent.
The House of Lords has committed to following the uprating used by the Commons. That would see the daily allowance for peers – who do not usually receive a salary – go up from £323 to £332.
Although the rise is below inflation, it will likely heap pressure for police and other public sector workers to get significant settlements.
A poll for MailOnline last month suggested it will be hugely unpopular with the public.
The Redfield & Wilton Strategies research found 64 per cent were opposed – with 45 per cent saying they felt strongly.
Just 16 per cent were in favour, including six per cent who strongly backed it going ahead.
The PM’s official spokesman said in January: ‘I would say we would expect restraint on matters like this given the current circumstances, but beyond that I think it’s right that we let Ipsa set out their proposals as an independent body.’
Sir Keir said: ‘I think that MPs do not need a pay rise and we should all be saying that we don’t need that pay rise and it shouldn’t go ahead.
‘The mechanism is independent but I think it’s for me, as Leader of the Opposition, to say that I do not think we should have that pay rise.’
Last year there was an outcry after warping effects from the furlough scheme left MPs on track for a big increase while the economy was being hammered by the pandemic.
Bank of England governor Andrew Bailey has appealed for workers not to ask for a big pay rise
A Redfield & Wilton Strategies poll for MailOnline has found 64 per cent of the public are against the increase for MPs going ahead in April – while just 16 per cent back it
Ipsa eventually abandoned the planned hike, and has said it will use ‘discretion’ to adjust the figure if necessary in the coming years – stressing that could be either upwards or downwards.
However, the ONS has suggested the impact of furlough and other factors have ‘largely worked their way out’ of inflation data.
A House of Lords spokesman said in December: ‘The House of Lords has previously agreed that any increases in Members’ allowances will be linked to rises to MPs’ salaries that are agreed independently by Ipsa.
‘Last year MPs’ salaries were frozen as were House of Lords allowances.
‘Until Ipsa puts forward proposals for MPs’ salaries it is not known whether Lords allowances will increase in 2022.
‘It is possible that they will be frozen again if that is what Ipsa propose for MPs.’
