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| Version 2 | Version 3 |
|---|---|
| Government drops MP pension plan | Government drops MP pension plan |
| (10 minutes later) | |
| Ministers have backed down on plans to increase the contribution of taxpayers to MPs' pensions, ahead of a debate. | 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 the amount from public funds. | |
| The proposal would have seen MPs' own contributions rise by £60 a month, but the Lib Dems said taxpayers would have paid £750,000 more than last year. | The proposal would have seen MPs' own contributions rise by £60 a month, but the Lib Dems said taxpayers would have paid £750,000 more than last year. |
| All party leaders have indicated that MPs' final salary schemes must end. | All party leaders have indicated that MPs' final salary schemes must end. |
| The cost to the Treasury of MPs' pensions has risen from £9.8m in 2003 to £12m last year. Over that period, MPs themselves were asked to contribute only an extra £700,000. | The cost to the Treasury of MPs' pensions has risen from £9.8m in 2003 to £12m last year. Over that period, MPs themselves were asked to contribute only an extra £700,000. |
| Frozen contributions | Frozen contributions |
| In March the main parties endorsed a plan to increase both MPs' contributions and contributions from public funds, but it was not put to a vote. | In March the main parties endorsed a plan to increase both MPs' contributions and contributions from public funds, 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. | 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 are due to debate the plans on Thursday but the Liberal Democrats planned to put down an amendment, supported by the Conservatives, that would have frozen taxpayers' contributions. | MPs are due to debate the plans on Thursday but the Liberal Democrats 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 (SSRB) in 2007 about the level at which the public contribution should be capped. | In a statement, Downing Street said all parties had previously agreed a recommendation from the independent Senior Salaries Review Body (SSRB) in 2007 about the level at which the public contribution should be capped. |
| Downing Street added: "Were the [Lib Dem] amendment to be selected, the government would be happy to accept it and consult further. | 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." | "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." |
| A review proposed in January 2008 was put off by MPs, who voted to delay the inquiry until the cost of pensions hit 20% of their total payroll, which is around £130m. | A review proposed in January 2008 was put off by MPs, who voted to delay the inquiry until the cost of pensions hit 20% of their total payroll, which is around £130m. |
| The Government Actuary's Department had warned the prime minister that the 20% threshold was likely to be breached. | The Government Actuary's Department had warned the prime minister that the 20% threshold was likely to be breached. |
| In February 2009 Gordon Brown ordered the review to consider the "full range of options" for reducing the burden to the taxpayer - including increasing the retirement age or ending the generous final salary pension scheme. | In February 2009 Gordon Brown ordered the review to consider the "full range of options" for reducing the burden to the taxpayer - including increasing the retirement age or ending the generous final salary pension scheme. |