Why is it that MPs are getting a pay increase while Brits are facing a cost of living crisis as well as price rises?

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After an independent review, MPs will receive a substantial pay increase. Voters who are facing a worsening crisis in their lives will not like the increase.

As the rest of the country struggles with rising living costs, MPs will see a substantial pay increase.

Inflation is up, families are set for council tax rises, energy prices have soared by a wallet-crippling average of £693 per year, and the government’s plan to cope with the crisis still leaves people out of pocket.

MPs now want a healthy raise, while campaigners point out the millions of households that are on the edge of poverty. They will face more despair in April as National Insurance tax payments soar.

Labour leader KeirStarmer made it clear he doesn’t think the rise which is determined independently is a good plan.

He stated in January: “I think that MPs do not need a pay rise and we should all be saying that we don’t need that pay rise and it shouldn’t go ahead.

“The mechanism is independent but I think it’s for me, as leader of the opposition, to say that I do not think we should have that pay rise.”

Number 10 also advised restraint from the Independent Parliamentary Standards Authority (IPSA) in January, so why are MPs getting a pay rise?

Why are MPs getting a pay rise?

Parliamentary watchdog IPSA is in charge of setting the rates of pay for MPs and it has decided the rise is due.

It was frozen for two years during the pandemic, but IPSA has now decided it is due in order to reflect “The average increase across the public sector is” over the last year.

IPSA chair Richard Lloyd said: “This marks the first increase in MPs’ salaries in two years. It also follows the average increases in public sector pay last year. Their pay is reflective of their vital role in democracy.

Another argument is that MPs should be paid well because ministers technically have two jobs. This should make it more attractive for people of all backgrounds to become MPs.

Mr Lloyd continued: “It is right that MPs are paid fairly for the responsibility and the unseen work they do helping their constituents, which dramatically increased last year.

“To reflect society, Parliament must include people from all walks and backgrounds.”

How much are MPs paid?

MPs are currently paid £81,932 a year and they are set for a pay rise of 2.7% to £84,144.

Though pay rises were frozen as the pandemic took hold, days before the March 2020 lockdown, MPs were told they were to be given a £10,000 increase to their office costs budget, as well as the credit limit on their payment cards going up from £4,000 to £10,000.

This was due to the shift from their base in Westminster to working from home, which was advised during lockdown.

In 2009, the expenses scandal led to the creation of IPSA. Its purpose was to regulate the staffing and business costs of MPs, to manage pension and pay arrangements, as well as financial support for MPs in their work.

It reads: “We are independent of parliament and the government. This means we make fair and impartial decisions about MPs’ pay, pensions and business costs.”

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