MPs accept below-inflation pay rise

A day after thousands of police marched through Westminster in protest against their own staged pay rise, MPs balked at the prospect of outraging key workers by insisting on an above-inflation hike for themselves. The 1.9% increase was accepted without a vote.

It may be the last time that MPs' annual pay increases are decided on the floor of the Commons, with the Baker review set to come up with a new way of settling awards by the summer.

Recent weeks had seen grumbling from some members reluctant to give up the 2.56% rise recommended by the independent Senior Salaries Review Body (SSRB). But in the event there was little appetite for rebellion from MPs who knew that the leadership of all three major parties backed the staged 1.9% rise.

Mr Brown sought to set the tone last week, announcing that he intends to forgo a chunk of his Prime Ministerial pension. And ahead of the vote, his spokesman said: "It's right that MPs, like the rest of the public sector, should also have their pay staged this year."

Commons Leader Harriet Harman began the surprisingly low-key Commons debate by calling on MPs to end the "inappropriate practice" of voting on their own pay rises.

"As MPs are paid out of the public purse, we should show the same discipline in terms of pay increases as other public sector workers," said Ms Harman. "Like everyone else - we should not decide on our own pay and shouldn't be voting on our pay increases."

The SSRB recommended a backdated rise for 2007/08 of 1.9%, on top of 0.66% which MPs received in April - a total of 2.56%. That would have taken their salaries to £61,820 - up from £60,277 last year and £60,675 at present.

Under the Government proposal accepted on Thursday evening, the increase to £61,820 will be staged so that the in-year value of the increase will be held to 1.9%. MPs will, however, receive a £10,000 boost to their office staffing allowances which are due to rise from £87,276 to £96,630.

Ms Harman confirmed both the Prime Minister and the Lord Chancellor had agreed that their pension provision should be no greater than for Secretaries of State and said any changes to MPs' pensions would be brought back to the House for decision later.