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10 January 2013: Reviewing MPs' Pay and Pensions - A First Report

IPSA has today published its report on the first public consultation considering MPs’ pay and pensions.

The report identifies the key areas for IPSA to focus on in the coming months as it reviews MPs’ remuneration, including comparisons with other jobs, affordability, public opinion, what the connection should be between pay and pensions, and whether to move to a career average pension scheme, in line with the rest of the public sector.

Having reflected on the results of the consultation, IPSA’s Board does not think that performance related pay, regional pay or pay which reflects outside earnings warrant further consideration.

As part of its work to understand different views on MPs’ remuneration, IPSA commissioned an anonymised survey of MPs. The results of this survey have today been published too. The results show that 69% of MPs questioned think they are underpaid and, on average, they suggest a MPs’ salary should be £86,250.

The survey suggests MPs’ views on pensions are split with 36% believing they should receive a career average pension,  similar to those being introduced in the rest of the public sector, and 35% believe they should retain their final salary pensions.   

This survey of MPs was carried out in addition to a public consultation and surveys of the public and focus groups held in 2012, details of which IPSA has already published.

In today’s report, IPSA also confirms it will be following the rest of the public sector by increasing MPs’ pay by 1% in 2013 and 1% in 2014. MPs have been subject to the public sector pay freeze since 2010.

Sir Ian Kennedy, IPSA chair, said today:

IPSA will continue its analysis of the issue before publishing proposals in the spring, upon which it will consult.

IPSA plans to publish details of the new MPs’ remuneration package in autumn this year, to take effect from the next Parliament in 2015.


In the past, MPs have agreed their pay and pensions among themselves. So this new approach of independent decision making marks a real and important change and is another crucial step in helping Parliament to regain the trust of the public. 

The consultation we held over the autumn has been hugely informative and important in directing our thinking. It also serves to show the spread of views and depth of feeling on this issue.  

We remain committed to listening and I would urge people to get involved in this debate.

Sir Ian Kennedy, IPSA Chair