MPs are to get a £7,600 pay rise after a watchdog refused to bow to pressure from political leaders to scale back the increase at a time voters are feeling the squeeze.
The Independent Parliamentary Standards Authority (Ipsa) will unveil its final proposals next week – including boosting MPs’ salaries to £74,000 from 2015 – 11% higher than they get at present.
It is expected to try to temper criticism by announcing a tougher-than-expected squeeze on MPs’ pensions in a bid to cancel out the £4.6 million cost to the public purse.
A £2.5 million saving by downgrading the final salary scheme to career average – matching the rest of the public sector – had already been proposed alongside a crackdown on various perks.
All three main party leaders have condemned the increase at a time of national austerity, with both Labour’s Ed Miliband and Liberal Democrat Nick Clegg having pledged to shun the extra money.
David Cameron has stopped short of matching that pledge – and is under pressure from some Tory MPs to back the increase – but has said Westminster pay should not rise while others face restraint.
