MPs salaries to increase to £94k thanks to above-inflation pay rise

MPs salaries were just under £80,000 at the start of the last parliament.

The above-inflation pay increase will see their annual salaries rise to £93,904, up from £91,346.

The move was announced by the Independent Parliamentary Standards Authority (Ipsa), which said the proposals reflect the “vital role” MPs play and the “current economic climate.”

Ipsa chairman Richard Lloyd said: “IPSA has been responsible for deciding MPs’ pay since 2011. Since then, our aim has been to make fair decisions on pay, both for MPs and the public.

“Our pay proposal for 2025-26 reflects the experience of the wider working public sector population, and recognises both the vital role of MPs and the current economic climate.”

The pay increase is slightly above the current inflation rate of 2.5 per cent, but is in line with the government’s recommendations on a wide pay rise for the public sector this year.

However, critics have said it will be a “bitter pill” to swallow for taxpayers.

John O’Connell, chief executive of the TaxPayers’ Alliance, said: “This will be a bitter pill to swallow given politicians of both front benches have for years hammered the living standards of taxpayers.

“MPs are guilty of delivering a record high tax burden, persistent inflation and struggling services, yet are now being rewarded for this catalogue of failures.

“Pay for politicians should be strictly linked to the country’s economic performance, ideally to actual living standards measured by GDP per capita.”

MPs got a pay increase in March last year when Rishi Sunak accepted a 5.5 per cent rise the basic salary of £86,584.

If the latest pay proposals are enacted, it will mean the basic salary for MPs will have risen by almost £14,500 since the start of the last parliament in 2019, when their annual salary was £79,468.

Ministers are paid a separate salary on top of their MP pay.

Ipsa will consult on its proposals until mid-March.