Salaries of members of the United Kingdom Parliament

The basic annual salary of a Member of Parliament (MP) in the House of Commons is £81,932,[1] as of April 2020. In addition, MPs are able to claim allowances to cover the costs of running an office and employing staff, and maintaining a constituency residence or a residence in London.[2] Additional salary is paid for appointments or additional duties, such as ministerial appointments, being a whip, chairing a select committee or chairing a Public Bill committee.

The Independent Parliamentary Standards Authority was introduced in response to the parliamentary expenses scandal that broke in 2009.

Salary and benefits: Commons

Basic salary

The basic annual salary of an MP in the House of Commons is £81,932.[1]

Historic salaries

Before the twentieth century, members of parliament were unpaid as it was assumed they would have another income.[3]

The first regular salary was £400 per year, introduced in 1911. Some subsequent salary levels were £1,000 in 1946, £3,250 in 1964, £11,750 in 1980, and £26,701 in 1990.[3] The increases in MPs' basic salaries since 1996 have been:[4][5]

Increase dateBasic salary Increase dateBasic salary Increase dateBasic salary Increase dateBasic salary
Jan 1996£34,085Apr 2002£55,118Apr 2009£64,766Apr 2019£79,468
Jul 1996£43,000Apr 2003£56,358Apr 2010£65,738Apr 2020£81,932
Apr 1997£43,860Apr 2004£57,485Apr 2013£66,396
Apr 1998£45,066Apr 2005£59,095Apr 2014£67,060
Apr 1999£47,008Apr 2006£59,686May 2015£74,000
Apr 2000£48,371Nov 2006£60,277Apr 2016£74,962
Apr 2001£49,822Apr 2007£61,181Apr 2017£76,011
Jun 2001£51,822Nov 2007£61,820Apr 2018£77,379

In December 2013, the Independent Parliamentary Standards Authority recommended that pay be increased to £74,000 per annum, linked "to the pay of the people they represent". At the same time, pensions benefits would be reduced, resettlement payments scrapped and expenses tightened. In July 2015, this was implemented (backdated to 8 May 2015, the day after the general election), with annual changes now "linked to changes in average earnings in the public sector".[6]

Additional salary

Many MPs (the Prime Minister, ministers, the Speaker, senior opposition leaders, opposition chief whip, etc.) receive a supplementary salary for their specific responsibilities. As of 1 April 2015 these additional entitlements range from £15,025 for Select Committee Chairs[7] to £79,990 for the Prime Minister.[8] On 24 May 2015 David Cameron announced that he intended to freeze ministerial pay for the next five years.[9]

Salary of the Prime Minister

The Prime Minister does not always claim the total amount entitled to in legislation. The Prime Minister also gets other benefits, such as use of the Prime Minister's apartment at 10 Downing Street and other official residences, and chauffeur-driven transport.

DateEntitlement[lower-alpha 1]Modern equivalentNotes
April 1937£10,000£650,000Set by Ministers of the Crown Act 1937
April 1965£14,000£273,000Set by Ministerial Salaries Consolidation Act 1965
April 1972£20,000£266,000Set by Ministerial and Other Salaries Act 1972
31 July 1978£22,000[10]£116,000Set by The Ministerial and other Salaries Order 1978 (SI 1978/1102)
July 1979£33,000[10]£102,000
July 1980£34,650[10]£150,000
July 1981£36,725[10]£142,000
June 1982£38,200[10]£136,000
July 1983£38,987[10]£133,000
January 1984£40,424[10]£131,000
January 1985£41,891[10]£128,000
January 1986£41,891[10]£124,000
January 1987£44,775[10]£127,000
January 1988£45,787[10]£124,000
January 1989£46,109[10]£116,000
January 1990£46,750[10]£107,000
January 1991£50,724[10]£110,000
January 1992£53,007[10]£111,000
January 1994£54,438[10]£109,000
  1. Excluding MP salary

The Prime Minister's salary figures below include the salary for being an MP.

DateEntitlementClaimedModern equivalentNotes
1 Apr 2008£193,885[11]
1 Apr 2009
1 Apr 2010£198,661[12]£257,000
April 2010£150,000Prime Minister Gordon Brown revealed on 20 April 2010,[13] days before the 2010 General Election, that he had taken a voluntary cut. It is not clear when from,[14] though on 1 April he was drawing the previous rate.[11]
13 May 2010£142,500A Coalition Cabinet meeting on 13 May agreed a further 5% cut, and freeze until the 2015 General Election.[15]
1 Apr 2011
1 Apr 2012
1 Apr 2013
1 Apr 2014
1 Apr 2015
8 May 2015£149,440On 31 July 2015, increases were announced that would be backdated to 8 May, the day after the 2015 General Election.
1 Apr 2016£152,532[16]£150,402[16][17]
1 Apr 2017£153,907[18]£151,451[18]
1 Apr 2018£155,602[19]£152,819[19]
1 Apr 2019£158,754[20]£154,908[20]

Pension

MPs will normally receive a pension of either 1/40th or 1/50th of their final pensionable salary for each year of pensionable service depending on the contribution rate they will have chosen. Members who made contributions of 13.75% of their salary gain an accrual rate of 1/40th.[21]

If an MP stands down during the course of a Parliament for ill health reasons, an ill health retirement grant is payable, calculated in the same way as the Resettlement Grant (as well as an immediate pension based on the service the MP would have accrued if he or she had continued to serve until age 65).[22]

Resettlement Grant and Winding-up Allowance

On leaving the House of Commons, an MP will be entitled to what is essentially severance pay.

Resettlement Grant

The Resettlement Grant motherhood is the name given to the MPs' severance pay package. It may be claimed to help former MPs with the costs of adjusting to life outside parliament. It is payable to any Member who ceases to be an MP at a general election. The amount is based on age and length of service, and varies between 50% and 100% of the annual salary payable to a Member of Parliament at the time of the dissolution.[3]

In the UK the first £30,000 of severance pay is tax-free. As stated above, the amount retiring MPs, or those who lose their seats receive, depends on how old they are and how long they have served in the House. For example, an MP who stays in office for one term (say 5 years) and then leaves office will currently receive tax-free severance pay of 50% of their current salary, or £32,383 at current rates – equivalent to an annual salary increment of over £12,000 at current tax rates and pay scales.[23]

From the start of the 2015 Parliament, a "Loss of Office Payment", at double the statutory redundancy payment, was introduced. "For the 'average' MP, who leaves office with 11 years' service, this may lead to a payment of around £14,850."[24]

Winding-up Allowance

There is also up to £42,000 on offer to pay for winding up staff contracts and office rent.[25] An allowance of up to one third of the annual Office Costs Allowance was paid for the reimbursement of the cost of any work on parliamentary business undertaken on behalf of a deceased, defeated or retiring member after the date of cessation of membership. On 5 July 2001 the House agreed to change the allowance to one third of the sum of the staffing provision and Incidental Expenses Allowance in force at the time of cessation of membership.[26]

Summer recess

Parliament takes a break of around 45 days for the summer. This is not only for holiday, but so that MPs can spend more time away from Parliament in their constituencies to do work there.

Expenses

In addition to the above benefits, MPs can claim for the reimbursement of expenses incurred as a result of their duties.

Office expenses
  • Office running costs
  • Staffing costs
  • Travel for staff
  • Centrally purchased stationery
  • Postage costs
  • Central IT costs
  • Communications allowance

MPs are entitled to claim £9,000 a year for postage and stationery (financial year 2015-16). This amount is in addition to any stationery and postage costs which Members may have reimbursed under the Independent Parliamentary Standards Authority's expenses Scheme.[27]

During the COVID-19 pandemic MPs were able to claim additional expenses of up to £10,000 to support the costs of them and their staff working from home.[28]

Housing, second home, and travel

MPs receive allowances towards having somewhere to live in London and in their constituency, and travelling between Parliament and their constituency.

Salary and benefits: House of Lords

Members of the House of Lords are not salaried. They can opt to receive a £305 per day attendance allowance, plus travel expenses and subsidised restaurant facilities. Peers may also choose to receive a reduced attendance allowance of £150 per day instead.[29]

Scrutiny and audit process of claims

In 2010, following the parliamentary expenses scandal, the payment of MPs' salaries and allowances, and many staff, was moved from the Fees Office, which was effectively self-policing by MPs of their expenses, to a more autonomous body, the Independent Parliamentary Standards Authority.[30] In 2010 the IPSA was also given the responsibility of setting MPs' salary levels. It is accountable to the Speaker's Committee for the IPSA, comprising the Speaker, the Leader of the House, the Chair of the Standards and Privileges Committee and five MPs selected by the Speaker (one of whom is the Shadow Leader of the House).

The National Audit Office, another independent parliamentary body, has some audit authority.

See also

References
  1. "MPs' Pay and Pensions". IPSA. Retrieved 29 June 2020.
  2. "Pay and expenses for MPs". UK Parliament. Retrieved 14 January 2019.
  3. "Members' Pay, Pensions and Allowances" (PDF). parliament.uk. Retrieved 15 June 2013.
  4. "www.parliament.uk Home page". UK Parliament.
  5. "MPs' Pay and Pensions/". IPSA. Retrieved 1 July 2017.
  6. "Review of MPs' Pay and Pensions". IPSA. Retrieved 1 July 2017.
  7. "Members' pay and expenses – current rates from 1 April 2013". Retrieved 1 February 2016.
  8. Richard Kelly (31 May 2013). "Members' pay and expenses – current rates from 1 April 2013" (PDF). UK Parliament. pp. 18–21. Retrieved 23 February 2015.
  9. "David Cameron announces freeze in ministers' pay". BBC. 24 May 2015.
  10. https://www.parliament.uk/documents/commons-information-office/m06.pdf
  11. "Members' pay and expenses – current rates and a review of developments since 2009". House of Commons Library, Table 5, p.18.
  12. "Ministerial Salaries Factsheet M6" (PDF). House of Commons Information Office, page 3 (for entitlement on 1 April 2010).
  13. "Gordon Brown reveals his massive pay cut". The Mirror.
  14. "Members' pay and expenses and ministerial salaries 2016/17". House of Commons Library.
  15. "Coalition Government: David Cameron announces pay cut for ministers". Daily Telegraph.
  16. "Salaries of members of Her Majesty's Government: July 2016". gov.uk.
  17. "How much does the Prime Minister get paid?". Full Fact.
  18. "Salaries of members of Her Majesty's Government: July 2017". gov.uk.
  19. "Salaries of members of Her Majesty's Government: July 2018". gov.uk.
  20. "Salaries of members of Her Majesty's Government: July 2019". gov.uk.
  21. Djuna Thurley (16 December 2013). "MPs' Pension Scheme – 2012 onwards" (PDF). UK Parliament. p. 26. Retrieved 23 February 2015.
  22. The Committee Office, House of Commons (2 July 2008). "House of Commons - Members Estimate Committee - Written Evidence". Publications.parliament.uk. Retrieved 2 May 2010.
  23. Mark Denten (22 May 2009). "The great MP payoff". BBC News. Retrieved 2 May 2010.
  24. "IPSA Resettlement Payment Policy". IPSA. Retrieved 11 April 2014.
  25. [Members Allowances 2009|http://www.parliament.uk/documents/upload/M05.pdf],[BBC Report |http://news.bbc.co.uk/1/hi/uk_politics/8074351.stm],
  26. http://www.parliament.uk/documents/upload/M05.pdf
  27. "House of Commons stationery and postage paid envelope costs per Member". UK Parliament.
  28. "MPs offered £10,000 for coronavirus office costs". BBC News. 9 April 2020. Retrieved 10 April 2020.
  29. "Members of the Lords: allowances". UK Parliament. Retrieved 22 May 2015.
  30. "Access Denied Error".
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