Members’ Salaries

Edward Leigh Excerpts

Monday 21st March 2011 Commons Chamber

[Sir George Young]

The whole House will be keenly aware of the country’s difficult financial situation, and both sides of the House accept that we have a substantial structural deficit, which must be brought down. The Government have had to take difficult decisions throughout the public sector, including imposing a two-year pay freeze on public sector workers earning more than £21,000. Hon. Members must now decide whether their constituents would welcome Parliament exempting itself from that policy and thus insulating itself from decisions that are affecting households throughout the country, or whether, as I believe, the public expect their elected representatives to be in step with what is being required of other public servants. I believe that it is right for us, as Members of Parliament, to forgo the pay increase that the current formula would have produced.

[Mr Edward Leigh (Gainsborough) (Con)]

I quite agree that Parliament should not exempt itself, but I was under the impression that we were never going to vote on our pay again.

[Sir George Young]

I will come in a moment to the point about whether we should overturn the decision that we took in July 2008. Let me briefly set out the background. On 3 July 2008, the House agreed a new formula for uprating Members’ salaries, which is what I think my hon. Friend was referring to. The annual percentage increase would be the median of a basket of public sector comparators, and this percentage would be calculated by the Senior Salaries Review Body and notified to you, Mr Speaker, in a letter from its chairman. That percentage increase would then take effect automatically from 1 April.

That system has considerable advantages. It provides a fixed uprating formula so that we do not determine our own salaries. It is transparent, as the formula and the SSRB’s determination are there for everyone to see. It is also fair in that it provides a link between the salary of a Member of Parliament and the salaries of others in the public sector. Those are the virtues that the Government usually believe should underpin any system for determining our salaries—independence, transparency and fairness. We have therefore not taken lightly the decision to set aside the pay increase and thereby abandon the formula.

As I said, the Government’s decision to invite the House to agree to a pay freeze is the product of the difficult fiscal situation in which we have to find significant cost savings across the public sector. As my predecessor as Leader of the House, the right hon. and learned Member for Camberwell and Peckham (Ms Harman), said in the 2008 debate:

“given that MPs are paid from the public purse, we should show the same discipline in our pay increases as we expect from the public sector.”—[Official Report, 3 July 2008; Vol. 478, c. 1062.]