Monday, July 1, 2013

MPs may get pay rise if other perks are cut, says David Cameron

PM responds to reports that Independent Parliamentary Standards Authority may recommend £10,000 pay rise for MPs
David Cameron
David Cameron, who was speaking in Islamabad before flying to Kazakhstan. Photograph: Mian Khursheed/REUTERS
David Cameron is prepared to sanction a modest pay rise for MPs on condition that they forfeit other perks to ensure the overall costs of Westminster are cut.
As Ed Miliband indicated that he would reverse a planned £10,000 pay rise for MPs if elected prime minister, Cameron said it would be unthinkable if the overall costs of Westminster were not frozen or even cut.
But in the face of intense lobbying by Tory MPs for Downing Street to allow them to receive a pay rise, the prime minister stopped short of ruling out a rise in their salaries.
The Mail on Sunday reported that the Labour leader would be prepared to intervene amid reports that the Independent Parliamentary Standards Authority (Ipsa) is planning to recommend a pay rise for MPs as high as £10,000. Miliband said MPs should receive no more than a 1% rise (£660) to keep them in line with public sector workers.
The prime minister adopted a more cautious approach. Speaking in Islamabad before flying to Kazakhstan, he said: "Our views – Ipsa asked our views and we gave our views – which were very much reflecting the current pay restraint. But Ipsa is independent, it has to make its recommendation. I don't see any sense on commenting on its recommendation until we know what it is. I have no idea."
The prime minister indicated that if Ipsa does recommend a pay rise, MPs might have to lose other benefits. This could mean cuts in their pensions.
Cameron said: "Whatever Ipsa recommends we can't see the cost of politics or Westminster going up. We should see the cost of Westminster go down. I famously had a plan for reducing the House of Commons, which was nearly there … Anything would be unthinkable unless the cost of politics was frozen and cut, so I'll wait and see what Ipsa have to say. What I said to Ipsa was that restraint is necessary."
There was confusion over the government's position when Francis Maude, the Cabinet Office minister, said the government was powerless to challenge decisions by Ipsa. Maude told the Murnaghan programme on Sky News: "It's not in my control, it's in the control of the Independent Parliamentary Standards Authority. It isn't even in the control of MPs themselves. What we do control, which is ministers' pay, we are controlling rigorously and we are controlling and we are cutting back on the cost of running the government."

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