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Potential changes to IPSA’s December payroll date

Between 8 March and 27 April 2018, we ran a public consultation on potential changes to IPSA’s December payroll date [PDF].

Since IPSA was established we have paid MPs and their staff on the last working day of each month.  This is in line with practice in many other organisations including the civil service.  The paydays for each month are published on our website.

Some MPs have recently asked us to adopt a new approach for the December payroll, and pay salaries before Christmas, as some other organisations do. They argue that their staff face additional costs over the festive season, leaving them out of pocket until payday at the end of December.  We are sympathetic to this request, but wish to ensure that the pros and cons are carefully considered.  We therefore wish to consult MPs and their staff on options that may address any concerns.

We ran a consultation between 8 March and 27 April on whether to pay December salaries earlier. We received over 500 responses. The most popular option, supported by 33 per cent of respondents was to continue to pay salaries at the end of December, as now. A further 20 per cent of respondents asked that we promote the payroll saving scheme. Following a discussion at IPSA’s Board, these are the options that have now been agreed.

Just under 20 per cent of respondents favoured bringing forward the December payroll date to earlier in the month. Other respondents argued that bringing forward the pay date could inadvertently create financial difficulties for some staff in January. A further 28 per cent of respondents asked that we offer staff salary advances on request. We have decided not to do so for the time being, as each advance payment will incur a banking charge and an administrative cost to IPSA.

Anyone who wants to start saving money can find out more about the London Mutual Credit Union Christmas savings scheme here: https://www.creditunion.co.uk/savings/christmassavings