Members of Parliament
The current parliamentary salary is £61,820 from 1 November 2007. MPs' pay was, prior to 24 January 2008, determined by the Resolution of 10 July 1996 with annual increases linked to movements in the mid-points of the Senior Civil Service pay bands following recommendations by the independent Senior Salaries Review Body. The resolution of 24 January 2008 cancelled this link pending the Government and Parliaments response to the Baker Review of Ministerial pay which is due to report this Summer.
Ministers' Pay
Ministerial salaries are determined by the Ministerial and Other Salaries Act 1975 as amended. Annual increases are linked automatically to movements in the mid-points of the Senior Civil Service pay bands (Ministerial and other Salaries Act 1997).
Allowances
Current parliamentary allowances are set out in Table 2. Allowances for the House of Commons are increased each year from 1 April. The Peers' motor mileage is increased by the Retail Price Index (RPI) for the preceding March. Allowances for the House of Commons are currently increased by the RPI for the preceding December, although this can be altered by the Members Estimate Committee. The remaining allowances for the House of Lords are increased on 1 August by RPI for the preceding July.
Current parliamentary allowances are set out in Table 2.
Severance Pay
Under the terms of the Ministerial and Other Pensions and Salaries Act 1991, Ministers and other paid Office Holders leaving office, for whatever reason, receive severance pay of one quarter of their salaries on their last day in office. The exceptions to this are if they are over 65, or if they take up another "relevant office" (such as another Ministerial post, or Leader of the Opposition or Opposition Whip) within three weeks.
At present, the definition of "relevant office" in the Act does not cover the Ministerial posts in the devolved administrations. Ministers who have left UK Ministerial posts to take up positions in the devolved administrations have chosen not to draw their severance entitlement.