Fury as IPSA announce MPs’ 2.7% pay rise amid inflation and cost of living crisis

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Families have been left ‘infuriated’ at MPs 2.7 per cent annual pay rise next month after a watchdog declared that they have been working harder during the pandemic.

The Independent Parliamentary Standards Authority said politicians’ salaries will go up from £81,932 to £84,144 and MPs will receive £2,212 more for the year from 1 April 2022. 

Peers are likely to see their tax-free daily ‘attendance allowance’ increase by the same proportion, to £332. 

Ipsa chair Richard Lloyd said it was important MPs are paid ‘fairly’, arguing their duties helping constituents ‘dramatically increased’ last year.   

Downing Street previously urged ‘restraint’ on MPs’ pay this year despite the cost of living crisis, while Keir Starmer has called for a freeze.

But families have been left ‘infuriated’ after it was announced Commons salaries are being hiked at the same time as voters face a painful £12billion increase in national insurance and soaring energy bills.

The average household energy bills are set to hit £3,000 this year and petrol could reach £1.70 a litre after the price of oil passed $100 a barrel, experts have warned.

Britons are braced for the price of gas, electricity, petrol, holidays and even a loaf bread to soar as the invasion of Ukraine tightens the squeeze on the cost of living.

And food prices are rising at near-record levels amid supply chain pressures and the Covid aftermath.  

One immediate effect was for stock markets in London and the rest of the world to fall – knocking a big hole in people’s pensions and savings.

Meanwhile, Labour MP Zarah Sultana slammed the Commons pay rise and branded it ‘wrong’ because ‘ordinary people are facing a Tory cost-of-living crisis’. She also added she will be donating her £2200 to foodbanks and other local charities.   

She wrote earlier today: ‘Today the independent regulator said MPs will get a £2200 pay rise. I believe this is wrong: Ordinary people are facing a Tory cost-of-living crisis. They should get a proper pay rise, not well-paid MPs. That’s why I will donate mine to Coventry Foodbank and other local causes.’

Many have taken to Twitter to express their anger over the ‘majority of MPs who live in a bubble’.

One user wrote: ‘This is ridiculous. So many people are in poverty and MPs, who can claim expenses on top of their current salary, are getting a pay rise. Infurating.’

Another added: ‘So my council tax is going up £42 a month, my energy bill is estimated to rise by £52 a month – A total of £1128. 

‘Then add food, fuel and everything else. Meanwhile, MPs will get expenses paid on top of a £2000 pay rise. This government is out of touch with reality.’

One more angry user wrote: ‘100 per cent this is wrong. People are struggling with everything going up, yet their wages are now. I, myself have had a pay freeze and had nothing in the last three years, but the cost of living is still increasing. I swear the majority of MPs live in a bubble.’       

Meanwhile, Bank of England governor Andrew Bailey recently urged people not to push for big pay rises, despite energy costs going through the roof and fears inflation will soar even further to 7.25 per cent in April. 

However, he was slapped down by No10, with the PM’s spokesman saying it is not for the authorities to dictate how private companies should pay their workers.   

Announcing the rise today, Mr Lloyd said: ‘This is the first increase in pay for MPs in two years and follows the average of increases across the public sector last year. MPs play a vital role in our democracy and this is reflected in their pay. 

‘It is right that MPs are paid fairly for the responsibility and the unseen work they do helping their constituents, which dramatically increased last year. For Parliament to reflect society, it is vital that people from all walks of life can be an MP.’ 

John O’Connell, chief executive of the TaxPayers’ Alliance, said: ‘Working households will be furious to see MPs’ pay go up while they face crippling tax hikes.

‘The current system of pegging politicians’ salaries to public sector pay only leads to rows over unpopular and unseemly rises.

‘Elected officials should show restraint and only accept rises when economic conditions allow.’

Ipsa was given control of politicians’ salaries after the credit crunch, and the watchdog has linked increases to changes in average public sector earnings for October.

The Office for National Statistics revealed in December that the figure was 2.7 per cent.

The House of Lords has committed to following the uprating used by the Commons. That would see the daily allowance for peers – who do not usually receive a salary – go up from £323 to £332. 

Although the rise is below inflation, it will likely heap pressure for police and other public sector workers to get significant settlements.

A poll for MailOnline last month suggested it will be hugely unpopular with the public. 

The Redfield & Wilton Strategies research found 64 per cent were opposed – with 45 per cent saying they felt strongly.

Just 16 per cent were in favour, including six per cent who strongly backed it going ahead.  

T he PM’s official spokesman said in January: ‘I would say we would expect restraint on matters like this given the current circumstances, but beyond that I think it’s right that we let Ipsa set out their proposals as an independent body.’

Sir Keir said: ‘I think that MPs do not need a pay rise and we should all be saying that we don’t need that pay rise and it shouldn’t go ahead.

‘The mechanism is independent but I think it’s for me, as Leader of the Opposition, to say that I do not think we should have that pay rise.’