Ministerial Severance: Reform
Debate between Jerome Mayhew and Emily Thornberry(10 months, 2 weeks ago)
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Emily Thornberry
If the hon. Lady has a moment to look at the motion before us today, and to consider it in the spirit of fairness and how public money should be spent, I hope that she would agree that the current system has been abused over the past few years by her colleagues in the Chamber and outside it. That is simply not the sort of thing that the public wants. They would be appalled if they knew what was going on with the severance payments we are talking about today.
Emily Thornberry
I will make a bit more progress, and then I will give way.
We are talking about severance payments today. Government Members may wish to speak about red herrings and other issues, but let us talk about the abuse of the severance payments system that we have seen over the past few years, because we should take a clear-eyed look at it. We are not seeking to scrap those payments, nor should we. As Geoffrey Howe said, they were introduced so that Ministers who had given long and dedicated service to their country could adjust to the loss of that salary. I do not think anyone on the Opposition Benches has any quarrel with that. Over the 40 years that those payments have existed, there has never been any previous occasion where it has been open to question that the rules by which those payments were made were wrong. Then, however, we came to 2022-23. It was a year of chaos in our politics, unprecedented in modern times. Sadly, it was a year in which the current severance scheme had its flaws suddenly exposed and its loopholes shamelessly exploited.
Before I address what went wrong with the system in that financial year, I will do something that I find personally unusual, which is to praise some members of Conservative Cabinets. It will be hard for me, and I feel my ancestors starting to shift uneasily in their graves, but I want to give credit where credit is due, and that credit goes to a small collection of Secretaries of State who, for want of a better phrase, did the right thing when it came to severance entitlements during that year of chaos. I praise the current Secretary of State for Environment, Food and Rural Affairs, the right hon. Member for North East Cambridgeshire (Steve Barclay), who was sacked as Health Secretary in September 2022, but reinstated by the current Prime Minister seven weeks later. What did he do with his severance payment? He returned it in full when he regained his old job, so he deserves praise for that.
I praise the current Secretary of State for Science, Innovation and Technology, the right hon. Member for Chippenham (Michelle Donelan), who resigned after two days as Education Secretary in July 2022, but turned down the £16,000-plus severance payment for which those two days had made her eligible, and she deserves praise for that. I even want to praise the right hon. Member for South Staffordshire (Sir Gavin Williamson), the former Chief Whip, the former Defence Secretary and the former Education Secretary. He claimed his £16,000-plus severance in 2019 when he was sacked for leaking top-secret information. He claimed his £16,000-plus severance again in 2021, when he was sacked for all his various school fiascos. However, he finally turned down his severance payment in 2023 after two weeks in the Cabinet Office, because he recognised that it would be inappropriate to accept it while under investigation for bullying. So let us praise him for that—if for nothing else.
What those examples show is that it is entirely possible for individuals to choose to waive their severance payments, or return them, when they feel that accepting them would not be right. Perhaps those individuals even reflected that, at the height of the cost of living crisis—which had been greatly exacerbated by the actions of their Government—it would seem inappropriate to accept thousands of pounds from the taxpayer as a reward for the contribution they had made to the chaos. Perhaps they realised how much like a smack in the face that would feel to their constituents. Either way, those individuals did do the right thing.
However, the hard fact is—numbers bear this out—that, for every one case in the last financial year where a Tory Minister decided that accepting that severance payment would be inappropriate in the circumstances, in at least six or seven other cases the opposite was unfortunately true. That is why we find ourselves here, trying to fix a system of ministerial severance that has been brought into disrepute by dozens of its most recent beneficiaries.
Emily Thornberry
I am saying that this is an important issue that needs to be considered. I suggest that perhaps together the right hon. Gentleman and my hon. Friend the Member for Brighton, Kemptown (Lloyd Russell-Moyle) put in for a debate so that we can air these matters properly. Today, I want to talk about ministerial severance payments.
Emily Thornberry
I will give way to the hon. Gentleman, and then I hope that I will not need to give way to him again.
Jerome Mayhew
I am grateful to the right hon. Lady for giving way. Is not the fact we are getting interesting ideas coming from Labour Members an example of how the motion before the House is so ill thought out? Those ideas are not in the motion. Does she not agree that this is not the way to create legislation?
Emily Thornberry
I am proud to say that my party is full of good ideas, but unfortunately we are unable to put them all into one motion. Let us have a little discipline today by concentrating on the motion at hand and the important issue we are raising. We believe that five particular problems were highlighted by the chaos in 2022-23. I will go through each of them, give an example and explain why the changes we want to put forward will solve those problems, and why we would therefore ask the House as a whole to seriously consider our proposal to ensure that we can pass legislation to change the situation, because it does need to be fixed.
First, let us look at what I call the short stayers problem. More than two dozen individuals occupied Front-Bench roles for just nine weeks at the fag end of the Johnson Government, or just seven weeks during the bedlam of the Truss experiment, all of whom walked away with three months of severance pay. Let us look at the hon. Member for Stoke-on-Trent North (Jonathan Gullis) as an example. Never a shrinking violet when it comes to calling out others, he served just 49 full days as a Minister in the Department for Education, earning less than £3,000 in wages, yet when he returned to the Back Benches he received almost double that in severance—three months’ severance for 49 days’ work. Perhaps the Minister for common sense will tell us whether that makes sense to her.
Secondly, we have the problem of the short-lived promotions: individuals who found themselves elevated from junior ministerial roles to more senior positions, and whose severance was therefore calculated not based on the salary they had earned for most of the year, but based on the much higher salary they had earned for only a few weeks. Let us think of the example of the right hon. Member for Middlesbrough South and East Cleveland (Sir Simon Clarke), who spent a year as Chief Secretary to the Treasury, earning a salary of almost £32,000, but then spent seven weeks as Levelling Up Secretary on a salary of more than double that amount. As a result of those seven weeks alone, the right hon. Gentleman received severance pay of almost £17,000. Again, I look forward to the Minister for common sense explaining where the sense is in that.
Thirdly, we have what I might call the quick returners—more than a dozen Ministers who claimed their three months’ severance pay after quitting the Johnson Government, or being sacked by his successor, but who ended up returning to the Front Bench a matter of weeks later while still enjoying the benefits of their severance payments. Take the Minister for Veterans’ Affairs, the right hon. Member for Plymouth, Moor View (Johnny Mercer), who not only accepted three months in severance after only two months as Veterans Minister, but told Plymouth Live point-blank that he had not accepted a severance payment, and then had the sheer chutzpah to return to exactly the same job seven weeks later without repaying a single penny. Once again, I hope that the expert on these matters will tell us whether that sounds like common sense.
Fourthly, there is a much smaller category—I have decided it is best not to give them a name at all. We also saw severance payments awarded in 2022-23 to two individuals, Peter Bone and Chris Pincher, who left their Front-Bench jobs while under investigation at the time for acts of gross misconduct. The 1991 rules are silent on this issue, and we can only assume that it was thought that any individual forced to quit in those circumstances would have the basic decency not to accept a handout from the taxpayer. However, I am afraid what the Pincher and Bone cases have shown us is that we cannot rely on the decency of individuals like that.
Finally—perhaps most incredibly—five severance payments in the last financial year were made entirely by mistake because the Government forgot to apply the age limit that says no one over the age of 65 can receive one, which is how Peter Bone and Nadine Dorries received their payments. Before the current incumbents of the Cabinet Office tell themselves that they have brought order to all this chaos, it is worth noting that the largest of those mistaken payments, which was made to a Minister in the Lords, was made not during the chaos of the summer and autumn of 2022, but in what one might call the cold light of day in January 2023.
The proposed changes to the severance rules set out in Labour’s motion would address each of the five issues that I have set out.
Emily Thornberry
I am not standing before the House saying that this motion and this legislation will fix every single issue that people can possibly think of in relation to the payment of Members of Parliament in every circumstance, but it will at least deal with the situation whereby someone can work as a Minister for two months, get three months’ severance pay and then seven weeks later go back to exactly the same job and essentially be paid twice. That is what this legislation is here to stop. Surely the hon. Gentleman can support that.
Jerome Mayhew
As I said at the start of my speech, there are elements where there is genuine cause for review, but if we followed the right hon. Lady’s train of thought, we would have thousands upon thousands of one-paragraph Acts clogging up the legislation. We need to do better than that. With responsible government, which is what we on the Government Benches try to focus on, we review appropriately, we use advice from civil servants and then we propose legislation.
Beyond the poverty of Labour’s motion drafting, there is the wider issue of ministerial pay and value for money. As my hon. Friend the Member for Southend West (Anna Firth) pointed out in her good speech, when the Conservatives came to power in 2010 as part of the coalition, it was not a case of just accepting what had gone before. The Government, under the leadership of David Cameron, cut ministerial salaries by 5%. More importantly, every single year since then—throughout the coalition period and the Conservative Government period—ministerial salaries have been frozen.
Let us look at value for money and the difference we get between a Labour Administration and a Conservative one. I see the Labour Whip, the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones), is in his place. In 2010, under Labour, he would have benefited from a salary of £40,926. [Hon. Members: “He doesn’t get anything.”] Under the Conservatives, that equivalent position—if he were in government—receives a salary of £17,917.
For Parliamentary Under-Secretaries of State, Labour Members paid themselves £48,270 in addition to their parliamentary salaries. Under the Conservatives, that has been reduced, in modern terms, to £22,375. At Minister of State level, under the Conservatives they are paid £31,680; under Labour, they paid themselves the equivalent of £63,594—they would have had no trouble with their mortgage payments. Cabinet Ministers under the Conservatives are paid an additional £67,505; Labour thought it appropriate to pay theirs £122,598. We have heard how the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) said there was no money left, and now I am beginning to understand where it all went.
We come to the position of Prime Minister. This Prime Minister is paid an additional £75,440. Labour Prime Ministers think it appropriate to pay themselves £204,329, in today’s money, on top. When we add the Pensions Increase (Pension Scheme for Keir Starmer QC) Regulations 2013—the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) has his own special pension arrangements from his work as Director of Public Prosecutions, disapplying any lifetime allowance for him, not for anyone else—to £204,329 for being Prime Minister, plus his MP’s salary of £86,584, it is no wonder he votes Labour. He can afford to be a socialist.
The question for Labour is, will it commit today to continue the freeze on ministerial salaries? The right hon. Member for Islington South and Finsbury was asked that by my hon. Friend the Member for Southend West, and she was unable to answer it. I gave her the opportunity again to answer it, and she refused. If she does not know the answer, perhaps she can write to me.