GORDON Brown is urging MPs to reject an inflation-busting pay rise and instead fall into line with more modest settlements for public servants.
The Prime Minister is giving MPs a free vote on their salaries – but has called on them to reject recommendations for a rise of 2.56 per cent and instead accept a staged pay rise of 1.9 per cent.
Although the total salary would be the same under b
oth awards at the end of the year – £61,820, up from £60,277 – the staging of the pay rise would effectively bring it to below the rate of inflation.
The Prime Minister is intending to lead by example and forego his rights to taking more than £65,000 a year on retirement, which rises to double that when he hits 65.
Instead, Mr Brown is applying recommendations that future Prime Ministers should have the same pensions as ministers. This means he will not receive his pension until he is 65. His predecessor, Tony Blair, is already enjoying the benefit.
However, after consulting Michael Martin, the Commons Speaker, Mr Brown decided that there would be no change in his generous provisions as the role of the Speaker was "different".
Harriet Harman, leader of the House, issued a written statement yesterday calling on MPs to apply the principles laid down by the government on public sector pay deals to their own pay, as the independent body responsible for reviewing their salaries published its recommendations.
