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MPs set to receive 11% pay rise MPs set to receive 11% pay rise
(about 3 hours later)
MPs are set to receive an 11% pay rise when a parliamentary watchdog publishes its final recommendations on salaries this week.MPs are set to receive an 11% pay rise when a parliamentary watchdog publishes its final recommendations on salaries this week.
The rise is due after the 2015 general election and will take pay to £74,000.The rise is due after the 2015 general election and will take pay to £74,000.
But the Independent Parliamentary Standards Authority is also expected to announce a squeeze on pensions and the resettlement grants that MPs are given when they leave Parliament.But the Independent Parliamentary Standards Authority is also expected to announce a squeeze on pensions and the resettlement grants that MPs are given when they leave Parliament.
All three party leaders disagreed with the rise when it was first proposed.All three party leaders disagreed with the rise when it was first proposed.
However Ipsa does not need to get the agreement of Parliament to bring in the changes.However Ipsa does not need to get the agreement of Parliament to bring in the changes.
It is set to increase the amount that MPs have to contribute to their pensions, and to downgrade MPs' final salary scheme to a career average in line with the rest of the public sector. The pay rise for MPs is expected to cost £4.6m to the public purse.
The pay rise itself is expected to cost £4.6m to the public purse. But Ipsa is also set to increase the amount that MPs have to contribute to their pensions, and to downgrade MPs' final salary scheme to a career average in line with the rest of the public sector.
Ipsa was created by Parliament in the wake of the MPs' expenses scandal in 2009.Ipsa was created by Parliament in the wake of the MPs' expenses scandal in 2009.
Tea and biscuitsTea and biscuits
A Downing street spokeswoman said MPs' pay was "a matter for Ipsa", but added: "The government has submitted its views to Ipsa as part of the body's consultation on MPs' pay.A Downing street spokeswoman said MPs' pay was "a matter for Ipsa", but added: "The government has submitted its views to Ipsa as part of the body's consultation on MPs' pay.
"It made it clear that, while Ipsa is an independent body set up by Parliament, in future decisions on remuneration it expects Ipsa to take into account the government's wider approach to public service pay and pensions."It made it clear that, while Ipsa is an independent body set up by Parliament, in future decisions on remuneration it expects Ipsa to take into account the government's wider approach to public service pay and pensions.
"We believe that the cost of politics should be going down, not up.""We believe that the cost of politics should be going down, not up."
Prime Minister David Cameron has stopped short of matching the pledge by the other party leaders to reject any extra money, and some Tory MPs support the increase. But he has said Westminster pay should not rise while others face restraint.Prime Minister David Cameron has stopped short of matching the pledge by the other party leaders to reject any extra money, and some Tory MPs support the increase. But he has said Westminster pay should not rise while others face restraint.
Ipsa previously said it had looked at increasing the current salary of £66,396 to anywhere between £73,365 and £83,430, but opted for a lower figure "in recognition of the current difficult economic circumstances".Ipsa previously said it had looked at increasing the current salary of £66,396 to anywhere between £73,365 and £83,430, but opted for a lower figure "in recognition of the current difficult economic circumstances".
After 2015, it proposes that MPs' wages would increase annually in line with average UK earnings.After 2015, it proposes that MPs' wages would increase annually in line with average UK earnings.
The changes would also see a £15 dinner allowance and claims for tea and biscuits scrapped. And it would mean taxpayer-funded taxis were only permitted after 23:00.The changes would also see a £15 dinner allowance and claims for tea and biscuits scrapped. And it would mean taxpayer-funded taxis were only permitted after 23:00.
There would also be a crackdown on claims made for running second homes, with costs such as TV licences and contents insurance no longer being met.There would also be a crackdown on claims made for running second homes, with costs such as TV licences and contents insurance no longer being met.
Mathew Sinclair from the Taxpayers Alliance campaign group said the public would be "furious that the pay rise comes at a time when MPs urge public pay restraint and the chancellor tells us he can't afford to ease the burden of taxes on hard-pressed households and businesses".Mathew Sinclair from the Taxpayers Alliance campaign group said the public would be "furious that the pay rise comes at a time when MPs urge public pay restraint and the chancellor tells us he can't afford to ease the burden of taxes on hard-pressed households and businesses".