PM faces split over pay as minister says she’ll give part of her rise to charity
DAVID Cameron was facing a Cabinet split yesterday over his refusal to block an ‘immoral’ 10 per cent pay rise for MPs.
Downing Street attempted to close down the row over the £7,000 pay increase by saying it was powerless to overrule the independent expenses watchdog which proposed it.
A spokesman for the Prime Minister said he would accept the pay rise, despite branding it ‘ unacceptable’ before the election.
But some ministers are privately aghast at the prospect of trying to impose pay restraint on millions of ordinary workers while pocketing a massive pay rise themselves.
Then, last night, Downing Street changed tack and said it would make a final appeal to the Independent Parliamentary Standards Authority (Ipsa) to abandon the plans – a move it had earlier ruled out.
Education Secretary Nicky Morgan became the first Cabinet minister to break ranks yesterday, saying she would give a chunk of the extra cash to charity if the pay rise goes ahead.
Mrs Morgan said it was not the ‘right time’ for a pay rise adding: ‘I think MPs are going to make it very clear that they don’t think this is the right thing to do.’
Asked what she will do if she is paid the money, she said: ‘I already make charitable donations and it is an opportunity to increase them.’
And one Cabinet minister told the Daily Mail the Prime Minister should change the law to allow the government to cancel the increase.
Meanwhile union leaders warned they would demand a 10 per cent pay rise for millions of workers whose annual increases are due to be capped at 1 per cent for the next two years.
Unison boss Dave Prentis said: ‘It is ironic that NHS workers had to fight to get 1 per cent when MPs are being handed a 10 per cent pay rise. There is now a case for public sector workers ... to get at least the same.’ Ipsa was set up in the wake of the expenses scandal to end the row over Mps voting on their own pay. The proposed pay increase would increase an MPs’ basic pay from £67,060 to £74,000 – a rise of 10.3 per cent. In a further damaging twist, it emerged that the pay rise will lead to a £10million pension bonanza for longstanding MPs, whose pensions are linked to their salaries. Speaking before the election, Mr Cameron described the plans as ‘ simply unacceptable’, and warned he would scrap Ipsa if it refused to back down.
But the Prime Minister appears to have caved in to his own backbenchers, who believe they are worth much more than their current salary.
Candidates for the Labour leadership Andy Burnham, Yvette Cooper and Liz Kendall have heaped pressure on Mr Cameron to block the move, saying they would give the money to charity if the pay rise is approved. Labour sources said acting leader Harriet Harman viewed the pay rise as ‘unacceptable’ and would not take it.
The SNP also condemned the proposal, saying it was ‘not right’ for MPs to take a massive pay rise at a time of austerity.
By contrast, most members of the Cabinet contacted by the Mail issued brief statements saying they disagreed with the pay rise, but believed it should be left to Ipsa.
Although the rise in MPs’ salary is decided by Ipsa, the top-up that ministers receive is in the Prime Minister’s gift. It means he could freeze their salaries by cutting the ministerial top-up.
Instead, Mr Cameron has only frozen the top-up, meaning all ministers will get a pay rise.
The Prime Minister’s pay will rise from £142,500 to £149,440 – a rise of 4.9 per cent.
Cabinet ministers will see their salary go up 5.2 per cent from £134,565 to £141,505.
And the salary of the Leader of
‘This is not the right thing to do’ ‘Overall bill will not rise’
the Opposition – whoever it turns out to be – will go up 5.4 per cent from £128,836 to £135,776.
Ipsa has defended the move, and said cuts to expenses means the overall bill to the taxpayer will not rise.
It has announced a month-long final consultation on the plans but warned it will back down only if ‘new and compelling evidence’ is put forward against the rise. ÷Left- winger Jeremy Corbyn last night threw his hat into the ring to become Labour leader.
He will stand on an anti-austerity platform amid concern from the Left of the party that the main contenders are giving too much ground to the Tories.
However, the MP for Islington North could struggle to get the 35 nominations from Labour MPs that are needed to get on the ballot paper. Additional reporting: Jack Doyle
Stephen Glover – Page 14