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Cath Everett

Sift Media

Freelance journalist and former editor of HRZone

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News: 1 in 5 Londoners get poverty wages as MPs go for 4 times average


Even though one in five Londoners now receive poverty wages, the Parliamentary watchdog has proposed that MPs’ pay should leap by a huge 40% to ensure earnings of four times the national average.

Despite the recent Westminster expenses scandal and pay freezes across many parts of the country, a consultation document published by the Independent Parliamentary Standards Authority recommended that MPs should have their salaries pegged to national earnings.
This, it says, would result in their salaries rising by a multiple of four from £65,738 to £91,936 – although boosting them to three times the national average (£23,000 per annum) is thought more likely, resulting in a pay increase of 5% to £68,952.
Future increases should also be linked to external factors such as inflation or economic growth, the report said. In return for the wage hike, however, MPs would receive less on leaving Parliament, give up their gold-plated final salary pensions and contribute more towards them.
Other suggestions being floated included paying politicians in relation to the number of hours they work in the Commons and their constituency or giving them a performance-related salary.
The news came as research conducted by Queen Mary, University of London and funded by the London Trust indicated that 20% of Londoners were now getting poverty wages.
The number of people who are paid below London Living Wage levels has risen by 100,000 to 580,000 over the last year, even though if paying it resulted in staff feeling more positive and loyal about their workplace (54% and 52% respectively).
Staff turnover rates also dropped by an average of 25% and employers also reported corporate social responsibility benefits in recruitment terms.
Author Profile Picture
Cath Everett

Freelance journalist and former editor of HRZone

Read more from Cath Everett

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