Draft Ministerial and other Salaries Act 1975 (Amendment) Order 2026 Debate

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Department: Cabinet Office

Draft Ministerial and other Salaries Act 1975 (Amendment) Order 2026

Chris Ward Excerpts
Wednesday 18th March 2026

(1 day, 12 hours ago)

General Committees
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Chris Ward Portrait The Parliamentary Secretary, Cabinet Office (Chris Ward)
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I beg to move,

That the Committee has considered the draft Ministerial and other Salaries Act 1975 (Amendment) Order 2026. 

The draft order flows from the legislation agreed by the House yesterday afternoon, and is a necessary and technical measure to address a historical misapplication of the Ministerial and other Salaries Act 1975, which sets ministerial and other office holders’ pay. The office holders within scope are the Leaders of the Opposition in both Houses, the Speakers in both Houses, the Chief Opposition Whips in both Houses and two assistant Opposition Whips in the Commons. The context for the order is that in 1997 a formula was introduced to link pay increases for Ministers and certain office holders to senior civil service pay bands. That formula set out that ministerial salaries should be increased by the average annual change in the mid-point of senior civil service pay bands.

During the financial year ’23-24, the Cabinet Office identified that the formula had been misapplied. Since the introduction of the formula in ’97, the salaries of permanent secretaries have often been excluded from the calculation despite the 1975 Act not permitting such an exclusion. That technical misapplication has happened under successive Administrations over several decades. The formula was originally proposed by the Senior Salaries Review Body, which recommended that permanent secretary pay should not be included in the calculation for ministerial pay. This Government believe that the policy that has been applied since 1997 in line with the SSRB recommendation is the correct approach. This Order in Council is being introduced to ensure that the law aligns with long-standing policy.

The order performs two primary functions. First, it resets the statutory salary levels for all Ministers and specified office holders. Given the historical misapplication, resetting the salaries in law will give legal clarity and a baseline for any future uplift. Secondly, the order amends the formula to exclude permanent secretary pay bands from any future calculations. That change simply formalises the policy approach that has already been applied in practice for several decades on a clear legal footing.

For the initial financial year beginning 1 April, the order sets out transitional measures where the higher of the old or new formula will be applied to ensure that no individual is disadvantaged by the retrospective effect of this order. The order’s impact is therefore minimal: it only affects ministerial office holders and a small number of office holders in Westminster.

For Ministers, this order will result in no change to their take-home pay—a point I emphasise with no little disappointment! The Prime Minister has maintained that the policy of freezing ministerial salaries for all Ministers will continue; it has been in place since 2008. The order therefore does not affect individuals who choose to take their entitled salaries. The Government have been unable to calculate annual pay increases while work on the order was ongoing, so we will provide back payments to current and former office holders dating back to 1 April 2023, which is when the mistake was identified. This legislation is also linked to the salaries of Chairmen and Deputy Chairmen of Ways and Means, which increase through the same formula. They will also receive back payments dating from 1 April 2023.

The Government are bringing forward this order to address a historical misapplication of the 1975 Act, which sets ministerial and certain office holders’ pay. It is a necessary, technical and minimal measure to address a misapplication of the law, and it ensures that the law aligns with long-standing policy under successive Governments. I look forward to hearing from other Members of the Committee.

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Chris Ward Portrait Chris Ward
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I thank the Opposition for their broad support. I will not be drawn too far on Whips’ salaries, if that is okay, but I thank the hon. Gentleman for the spirit in which that point was raised.

As I said, although it is technical in nature, the order helps to iron out a discrepancy in application, and makes sure that the law has an accurate effect. As I have outlined, it is not about creating new policy or changing ministerial pay. I am afraid that I do not know the answer to the hon. Gentleman’s question about pension entitlements, but I will get back to him shortly.

As I say, the order addresses a historical discrepancy that was entirely accidental and that it is important now to rectify. With that, I commend it to the Committee.

Question put and agreed to.