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Government drops MP pension plan | Government drops MP pension plan |
(21 minutes later) | |
Ministers have backed down on plans to increase the contribution of taxpayers to MPs' pensions, ahead of a debate. | |
A planned increase had been accepted by all parties in March but the government now says it will accept a Lib Dem plan to freeze taxpayers' contributions. | |
The government wants to increase MPs' contributions by £60 a month, but the Lib Dems complained the taxpayer would pay £750,000 more than last year. | |
All party leaders have indicated that MPs' final salary schemes must end. | |
In March the main parties endorsed the increase but it was not put to a vote. | In March the main parties endorsed the increase but it was not put to a vote. |
BBC political correspondent Laura Kuenssberg said the political mood had changed in the wake of the MPs' expenses scandal and the impact of the recession. | |
MPs had been due to debate a plan to increase both the amount they contribute to their pensions and the amount taken from public funds. | |
But the Liberal Democrats had planned to put down an amendment, supported by the Conservatives, that would have frozen taxpayers' contributions. | |
In a statement, Downing Street said all parties had previously agreed a recommendation from the independent Senior Salaries Review Body in 2007 about the level at which the public contribution was capped. | |
The Lib Dems say it meant the taxpayer's share of funding the generous Parliamentary pension would have gone up from 26.8% to 28.%. | |
Downing Street added: "Were the [Lib Dem] amendment to be selected, the government would be happy to accept it and consult further. | |
"In any case, this was always going to be a free vote and the government has asked the SSRB to review fundamentally MPs pensions for the longer term." |