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MPs' pay compared to public sector pay
CAS-23437
Disclosure Date:24 Jul 2015
Categories: MPs' PAY AND PENSIONS
Exemptions Applied: Section 21
Request

I am writing to you regarding a statement which I read on the BBC news, regarding the MPs obtaining a 10% pay rise.    

The statement is as below, which is a quote from the Independent Parliamentary Standards Authority, "Over the last Parliament, MPs' pay increased by 2%, compared to 5% in the public sector and 10% in the whole economy. It is right that we make this one-off increase and then formally link MPs' pay to public sector pay." http://www.bbc.co.uk/news/uk-politics-33552499  

I do not understand why you have stated that public sector workers have obtained a 5% pay rise in the previous government. I have worked as a public sector worker for Local Authority for many years, and I am concerned that this figure might be a misrepresentation. I would therefore be grateful if you could explain the above statement and where you have obtained the 5% figure from. Indeed I would request that you explain all of the figures contained in this statement.  

  • When did public sector workers receive a 5% payrise,
  • Was the payrise subject to specific geographical or organisation areas?
  • I read in the news last year that MPs received a payrise of at least 9%, yet you say here that their pay had increased by 2%. http://www.bbc.co.uk/news/uk-politics-29098334
Response

IPSA holds the information that you request.

Since IPSA was established in 2010, MPs’ have received a 1% pay rise each year – including last year.

On 16 July 2015, we published the final report on our review of MPs’ remuneration, concluding a review which began in October 2012. As you will be aware, we are now implementing a package of reforms, which includes:

  • reducing MPs' generous pension benefits;
  • scrapping resettlement payments for MPs which had been worth up to a year's salary;
  • tightening MPs' expenses further; and to call on MPs to produce an annual account to help constituents to understand their work;
  • making a one-off adjustment to MPs' pay from £67,060 to £74,000 a year, to reflect that it had fallen behind; and
  • thereafter, linking changes in MPs' pay to average earnings in the public sector; 

You can read the full report on our website at the following address: http://parliamentarystandards.org.uk/transparency/Our%20consultations/Pay%20and%20Pensions/MPs%27%20Pay%20Consultation%202015/MPs%27%20Pay%20in%20the%202015%20Parliament%20-%20Final%20Report.pdf

Page 13 of the report makes reference to pay increases across the economy, and notes that, on average, pay across the public sector has increased by 5% over the last five years according to figures from the Office for National Statistics (ONS). These figures are referenced in the report and are available on the ONS’ website through the following steps:

  1. Click here to open up the ONS’ Average Weekly Earnings statistics;
  2. Click the link to ‘AWE Total Pay’
  3. The column ‘KAC7’ refers to weekly earnings in the public sector. The change in the figures between March 2010 and March 2015 indicate a 5% increase.