Sebastian Payne

Five things you need to know about Ipsa’s final report on MPs’ pay

The Independent Parliamentary Standards Authority has released its final report on MPs’ pay today. It’s pretty much what was expected — a big salary bump, paid for by cutting back expenses and pensions, to start in the next Parliament. This is what you need to know:

  1. MPs’ pay will a take one-off hike to £74,000. Ipsa says this is to ‘address the historic shortfall’. This is a 11 per cent rise based on what they’re paid today, or 9.26 per cent on top of a previously announced inflation-linked pay rise. After this, MPs’ pay will track average earnings — going up or down based on what’s going on rest of the country.
  2. Less generous pension scheme. The current final salary pension scheme will be discontinued, replaced with one based on career average re-valued earnings (CARE). This is more in line with other parts of the public sector. MPs’ individual contributions to their pensions will also rise.

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