Ministerial Severance: Reform

James Sunderland Excerpts

Tuesday 6th February 2024 Commons Chamber

[Esther McVey]

I am sad to say no I cannot, because we have said that it is essential that there is due process on the Floor of this House—not like the Opposition, who want to whisk it through in a day.

We are completely transparent about the payments of severance, and all such payments are published in departmental annual reports.

[James Sunderland (Bracknell) (Con)]

In the interest of objective debate, could the Minister please confirm why Ministers above the age of 65 from any of the major parties are less deserving than those who are under 65?

[Esther McVey]

My hon. Friend makes a good point, and I think that that would be looked at under the review as well, should we review this, but the law that was set out at that time stipulated that age. That is something else that I agree would need to be looked at.

I want to be clear that severance pay cannot be looked at as a stand-alone issue. It is part of an overall picture that governs payments made to Ministers. More broadly, the Government have consistently demonstrated restraint and always sought to minimise the cost of government, at the same time as modernising ministerial office to bring it into the 21st century. This is most clearly demonstrated in the Government’s policy on ministerial pay.

Ministerial salaries today are lower than they were when this Government took office in 2010, which in real terms constitutes a significant pay cut. My noble Friend Lord Cameron introduced a 5% cut to ministerial pay when he came into office in 2010. Since then, Prime Ministers have asked Ministers to waive the increase in their statutory pay entitlement year on year. For example, ministerial salaries are roughly half—that is half—of what they would have been had Lord Cameron not introduced the salary reduction when he became Prime Minister. In April 2010, Ministers of State earned £42,370, which is £63,594 in today’s money, yet a Minister of State today receives £31,680.

I appreciate that the right hon. Member for Islington South and Finsbury did not want to reply to the question from my hon. Friend the Member for Southend West (Anna Firth), but will she confirm today that her party would continue with the ongoing cut in ministerial pay?