Post by oldmike on Jan 17, 2008 18:10:14 GMT 7
From the Daily Telegraph
Defiant MPs to vote for bumper pay deal
By Robert Winnett, Deputy Political Editor
Last Updated: 6:29am GMT 17/01/2008
A row over MPs' pay erupted last night after an independent review recommended that they should receive rises above inflation for the next three years.
Gordon Brown said he would attempt to block the generous 2.56 per cent settlement, which surpasses those offered to the police and teachers.
But the Prime Minister faces a showdown with Labour and Conservative backbenchers, who are expected to join forces to push through the salary rises despite widespread public opposition.
The row - which follows threats of industrial unrest from police and teachers - calls into question whether MPs should have the right to vote on their own pay deal.
In addition to earning £60,675 a year, MPs receive on average an additional £135,850, including more than £20,000 for living costs.
A report from the Senior Salaries Review Body (SSRB) found that MPs' pay was "at least on a par" with their European counterparts and found that Mr Brown was one of the best-paid leaders in the western world.
However, it said that MPs' pay had slipped behind comparable positions in the public and private sectors and that generous salary increases were now necessary.
Under the recommendations, MPs' allowances should also be increased by almost £10,000 a year to employ additional staff.
The proposal could cost the taxpayer an extra £2.63 million a year once the National Insurance contributions, travel and other subsistence for MPs' staff were taken into account.
The review also said that MPs should be subject to spot checks on expense claims from the National Audit Office.
It recommended a cut from £250 to £50 in the amount MPs could claim in expenses each month without producing receipts.
It also concluded that it was unfair for taxpayers to meet the rising costs of the MPs' pension scheme, one of the most generous in the world, and urged MPs to pay some of the higher costs in future.
However, the central recommendations on pay rises for MPs - which will cost taxpayers more than £1 million - are expected to open a rift between Mr Brown and backbenchers.
The police - who are threatening to picket Parliament next week - have been offered only 1.9 per cent while teachers are to get a 2.45 per cent rise this year.
The SSRB also said that, for the next three years, MPs' pay should rise by more than inflation - an increase in line with senior civil servants plus an extra £650. Ministers' pay should rise even faster.
However, Mr Brown announced last night that he had rejected the recommendation and was instead pushing for a 1.9 per cent rise that would also apply to ministers.
MPs have a free vote on the proposal later this month and many Labour and Conservative backbenchers are expected to rebel against Mr Brown and opt for the full 2.56 per cent.
The Government announced that although it was powerless to stop such a rebellion it would, in future, strip MPs of the right to vote on their own pay package.
Harriet Harman, the Leader of the House and deputy Labour leader, said: "Under the current procedures of the House, the process of determining pay, pensions and allowances rests with MPs.
"Many of us believe that it is unacceptable, and we know that the public do not accept that we should vote on our own pay and pension."
However, one Labour MP said: "This is a thoroughly-researched independent recommendation, so what is the point of the review if it will just be ignored?
"There is a lot of disquiet about this and a fair few MPs will vote against the PM."
The position of many MPs will infuriate public sector workers facing pay increases at inflation or below.
Matthew Elliott, the chief executive of the TaxPayers' Alliance, said:"In these rocky economic times, we all have to tighten our belts and MPs should lead by example.
"Families are struggling under the weight of taxation, so MPs should not add to that burden."
The recommended SSRB pay increase is backdated and tops up a smaller salary rise given to MPs early last year. The Government is proposing a smaller top-up which is only backdated to the autumn rather than last April.
In an attempt to placate angry backbenchers, the Prime Minister and Jack Straw, the Lord Chancellor, also announced that they would sacrifice the generous pension packages they currently enjoy.
They will now have the same pension arrangements as other ministers and MPs - to which they must contribute.
The move is estimated to cost Mr Brown about £500,000.
Defiant MPs to vote for bumper pay deal
By Robert Winnett, Deputy Political Editor
Last Updated: 6:29am GMT 17/01/2008
A row over MPs' pay erupted last night after an independent review recommended that they should receive rises above inflation for the next three years.
Gordon Brown said he would attempt to block the generous 2.56 per cent settlement, which surpasses those offered to the police and teachers.
But the Prime Minister faces a showdown with Labour and Conservative backbenchers, who are expected to join forces to push through the salary rises despite widespread public opposition.
The row - which follows threats of industrial unrest from police and teachers - calls into question whether MPs should have the right to vote on their own pay deal.
In addition to earning £60,675 a year, MPs receive on average an additional £135,850, including more than £20,000 for living costs.
A report from the Senior Salaries Review Body (SSRB) found that MPs' pay was "at least on a par" with their European counterparts and found that Mr Brown was one of the best-paid leaders in the western world.
However, it said that MPs' pay had slipped behind comparable positions in the public and private sectors and that generous salary increases were now necessary.
Under the recommendations, MPs' allowances should also be increased by almost £10,000 a year to employ additional staff.
The proposal could cost the taxpayer an extra £2.63 million a year once the National Insurance contributions, travel and other subsistence for MPs' staff were taken into account.
The review also said that MPs should be subject to spot checks on expense claims from the National Audit Office.
It recommended a cut from £250 to £50 in the amount MPs could claim in expenses each month without producing receipts.
It also concluded that it was unfair for taxpayers to meet the rising costs of the MPs' pension scheme, one of the most generous in the world, and urged MPs to pay some of the higher costs in future.
However, the central recommendations on pay rises for MPs - which will cost taxpayers more than £1 million - are expected to open a rift between Mr Brown and backbenchers.
The police - who are threatening to picket Parliament next week - have been offered only 1.9 per cent while teachers are to get a 2.45 per cent rise this year.
The SSRB also said that, for the next three years, MPs' pay should rise by more than inflation - an increase in line with senior civil servants plus an extra £650. Ministers' pay should rise even faster.
However, Mr Brown announced last night that he had rejected the recommendation and was instead pushing for a 1.9 per cent rise that would also apply to ministers.
MPs have a free vote on the proposal later this month and many Labour and Conservative backbenchers are expected to rebel against Mr Brown and opt for the full 2.56 per cent.
The Government announced that although it was powerless to stop such a rebellion it would, in future, strip MPs of the right to vote on their own pay package.
Harriet Harman, the Leader of the House and deputy Labour leader, said: "Under the current procedures of the House, the process of determining pay, pensions and allowances rests with MPs.
"Many of us believe that it is unacceptable, and we know that the public do not accept that we should vote on our own pay and pension."
However, one Labour MP said: "This is a thoroughly-researched independent recommendation, so what is the point of the review if it will just be ignored?
"There is a lot of disquiet about this and a fair few MPs will vote against the PM."
The position of many MPs will infuriate public sector workers facing pay increases at inflation or below.
Matthew Elliott, the chief executive of the TaxPayers' Alliance, said:"In these rocky economic times, we all have to tighten our belts and MPs should lead by example.
"Families are struggling under the weight of taxation, so MPs should not add to that burden."
The recommended SSRB pay increase is backdated and tops up a smaller salary rise given to MPs early last year. The Government is proposing a smaller top-up which is only backdated to the autumn rather than last April.
In an attempt to placate angry backbenchers, the Prime Minister and Jack Straw, the Lord Chancellor, also announced that they would sacrifice the generous pension packages they currently enjoy.
They will now have the same pension arrangements as other ministers and MPs - to which they must contribute.
The move is estimated to cost Mr Brown about £500,000.