MPs are in line for 2.7 per cent pay rise to £84,000 next spring and Lords could see daily allowance go up to £332 as labour shortages and supply chain chaos drive up wages
- MPs pay and peers’ allowances linked to average rise in public sector in October
- The latest figure is 2.7 per cent which would see MPs get £2,200 increase in April
- Watchdog has said it will use ‘discretion’ on whether to go ahead with the rise
- Wages putting pressure on inflation, which has hit a 10-year high of 5.1 per cent
MPs could be in line for a 2.7 per cent pay rise to more than £84,000 next spring as labour shortages and supply chain chaos drives up wages.
Peers could also see their tax-free daily ‘attendance allowance’ increase by the same proportion, to £332.
The Independent Parliamentary Standards Authority (Ipsa) was given control of politicians’ pay after the credit crunch, and the watchdog has linked increases to changes in average public sector earnings for October.
The Office for National Statistics revealed yesterday that the figure was 2.7 per cent – which would mean a £2,200 rise from £81,932 to £84,144 in April.
The House of Lords has committed to following the uprating used by the Commons. That would see the daily allowance for peers – who do not usually receive a salary – go up from £323 to £332.
MPs are in line for a 2.7 per cent pay rise to more than £84,000 next spring as labour shortages and supply chain chaos drives up wages
Peers could also see their tax-free daily ‘attendance allowance’ increase to £332 if Ipsa sticks to the usual mechanism
Although the rise is below inflation, with the CPI rate coming in at a five-year high of 5.1 per cent today, it would be likely to heap pressure for police and other public sector workers to get significant settlements.
Last year there was an outcry after warping effects from the furlough scheme left MPs on track for a big increase while the economy was being hammered by the pandemic.
Ipsa eventually abandoned the planned hike, and has said it will use ‘discretion’ to adjust the figure if necessary in the coming years – stressing that could be either upwards or downwards.
However, the ONS said yesterday that the impact of furlough and other side-effects have ‘largely worked their way out of the latest growth rates’.
An Ipsa spokesman said: ‘A decision on MPs pay for 2022-23 will be taken by Ipsa early next year.
‘Ipsa will take into account ONS data as well as other relevant information when reaching a decision.’
A source played down the prospect of the watchdog opting for a figure above 2.7 per cent, saying it would be a ‘brave’ move.
A House of Lords spokesman said: “The House of Lords has previously agreed that any increases in Members’ allowances will be linked to rises to MPs’ salaries that are agreed independently by Ipsa.
‘Last year MPs’ salaries were frozen as were House of Lords allowances.
‘Until Ipsa puts forward proposals for MPs’ salaries it is not known whether Lords allowances will increase in 2022.
‘It is possible that they will be frozen again if that is what Ipsa propose for MPs.”
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