The annual basic salary for all MPs is currently £74,962 (as of 1 April 2016).
Review of MPs' Pay and Pensions
IPSA was made responsible for determining MPs' pay and setting the level of any increase in their salary in 2011, under the terms of the Constitutional Reform and Governance Act 2010. We are also responsible for the oversight of the MPs' pension scheme. Details of MPs' current pay can be found here.
Between 2012 to 2015, we conducted a comprehensive review of MPs' pay and pensions.
In October 2011, IPSA was given responsibility for determining a new scheme for MPs’ pensions. Before conducting our larger review of MPs' remuneration, we held a small consultation on interim arrangements to be introduced in April 2012.
The first wide-ranging consultation on MPs’ pay and pensions, and other elements of their remuneration package, took place in October 2012, following a period of extensive gathering of evidence. This included public opinion polling, focus groups and citizens’ juries.
The resulting consultation was open-ended: it did not make firm proposals, but asked questions about all aspects of MPs’ remuneration, and provided evidence on how MPs’ pay compared with that of other professions, other representative bodies in the UK and overseas, and with national average earnings over the previous hundred years. The paper also examined alternative pension arrangements in detail.
A report on the first consultation was published in January 2013. It did not make recommendations on a remuneration package, but set out a framework and principles for further work.
In July 2013, the second consultation was launched which contained proposals for MPs’ pay, pensions, resettlement payments and some of their business costs and expenses.
In December 2013, following two public consultations, we proposed a modern, professional package for MPs’ remuneration.
There were six main elements to our proposal:
- to make a one-off adjustment to MPs' pay from £67,060 to £74,000 a year, to reflect that it had fallen behind;
- thereafter, to link changes in MPs' pay to their constituents' pay across the country;
- to reduce MPs' generous pension benefits;
- to scrap resettlement payments for MPs which had been worth up to a year's salary;
- to tighten MPs' expenses further; and
- to call on MPs to produce an annual account to help constituents to understand their work.
As a whole, this package of reform would not cost the taxpayer a penny more. It would bring MPs’ pensions into line with others in the public sector, it would get rid of generous and out-of-date benefits and, after a one-off pay adjustment, it would permanently link MPs’ pay to the pay of the people they represent.
In December 2014, as part of the reforms announced in December 2013, the new Parliamentary Contributory Pension Fund Scheme (the 'MPs' Pension Scheme') was laid before the House of Commons.
Following the 2015 General Election, we conducted a final consultation in June 2015, as required by statute.
We announced on 16 July 2015 our final decision on MPs’ pay in the 2015 Parliament. We have now implemented all elements of the package.
All MPs will now be paid an annual salary of £74,000, backdated to 8 May 2015. Annual changes in MPs’ pay during this Parliament will be linked to changes in average earnings in the public sector, rather than to those in the economy as a whole as previously proposed. We will review MPs’ pay again in the first year of the next Parliament, as required by statute.
Pay for Committee Chairs
IPSA also has responsibility for determining the additional salaries paid to 35 Chairs of Select Committees and to 34 Members of the Panel of Chairs (previously known as Chairs of Standing Committees).
Between March and May 2016, IPSA conducted a review of the additional salaries paid to Chairs of Select Committees and to Members of the Panel of Chairs.
On 25 May 2016, IPSA confirmed the outcome of its review of the additional salaries paid to Chairs of Select Committees and to Members of the Panel of Chairs.
You can find out more about the MPs' Pension Scheme (the Parliamentary Contributory Pension Fund) here.