Members' Salaries

Lord Young of Cookham Excerpts

Thursday 20th January 2011 Written Statements

[The Leader of the House of Commons (Sir George Young)]

On 3 July 2008, the House of Commons passed a resolution linking future annual increases in Members’ salary to the median pay increase received by a basket of 15 public sector work force groups in the preceding year. The correct figure for this increase is determined each year by the Senior Salaries Review Body (SSRB) and takes effect automatically at the beginning of the relevant financial year, having been notified to the House by the SSRB, through the Speaker. I am grateful to the SSRB for undertaking this work on behalf of the House.

The chairman of the SSRB has written to the Speaker and the letter has been laid before the House. The increase for 2011-12 is 1%, according to the formula. In the absence of a further review by the SSRB to specify a different formula (for which provision was made in the 2008 resolution), only a further decision of the House can stop the increase from taking effect from 1 April 2011.

The Government support the independent determination of Members’ remuneration. However, in light of the decision to impose a two-year pay freeze on all public sector workers earning more than £21,000 per annum, a motion will be brought forward to invite the House to rescind the 2008 resolution, so that the 1% pay increase will not take effect.

The 2008 resolution also requires the SSRB to conduct a review of Members’ salaries in the first year of each new Parliament. By rescinding the resolution in its entirety, the motion removes the requirement for the SSRB to conduct such a review this year. The review of Members’ salaries will instead take place following the commencement of the relevant sections of the Constitutional Reform and Governance Act 2010, which provides for the future independent determination of Members’ salaries.