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). 

TABLE OF MINISTERIAL PAY 2008

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.

MEPs

Foreign Office Ministers take the lead in the negotiations with partners, but the Leader has lead responsibility on the policy issues, and for the relevant domestic legislation, the European Assembly (Pay and Pensions Act) 1979.

MEPs' salaries are currently linked to those for Westminster MPs under the European Parliament (Pay and Pensions) Act 1979.  MEPs who are also MPs receive a "duality rate" of one third of the standard salary. 

Most other Member States have adopted a similar arrangement whereby the salaries of their MEPs are linked to those of their national parliament.

In 2005 Member States agreed that all MEPs will have a common salary of 38.5% of the basic salary of a judge in the European Court of Justice; this is to take effect from 2009, along with a common set of terms and conditions.

Pay of Members of the devolved bodies

In its report of 1999 on pay and allowances for Members of the devolved bodies, the SSRB recommended that Members who were also MPs should receive an abated salary in respect of their membership of the devolved body equal to one-third of the relevant Member salary. Responsibility for pay and allowances of Members now rests with each devolved body.

Senior Salaries Review Body

The independent Senior Salaries Review Body (SSRB) advises the Prime Minister from time to time on the pay and pensions of Members of Parliament and their allowances; on Peers allowances; and on the pay, pensions and allowances of Ministers and others whose pay is determined by the Ministerial and other Salaries Act 1975.  It is comprised of a mixture of businessmen, academics, economists and lawyers.  Members are appointed by the Prime Minister for 3 year terms.

In 1996 the SSRB were asked to review Parliamentary Pay and Allowances.  In their report published in 1997 (CM 3330) the SSRB recommended that they carry out a review of Parliamentary Pay and Allowances every three years, starting in 2000.

Current Issues

Triennial Review

The Prime Minister wrote to John Baker, Chair of the SSRB on 24 July to commission the next Triennial Review.  The Review Body will report next year.

Please click here for a full copy of the Government's evidence to the SSRB.

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