Prime Minister backs Claire Perry on the reform of MPs pensions

Yesterday during Prime Minister's Questions, Claire Perry MP asked the Prime Minister whether he agreed that MPs should be in the vanguard of the debate on public sector pension reform by speeding up the reform of their own pensions. The Prime Minister agreed and stated that MPs should be subject to exactly the same changes as the Public Sector.

Speaking after Prime Minister's Questions, Claire Perry said:

"Given the tough choices the Government is having to make on public-sector pensions I think that Members of Parliament should lead by example and reform their own final-salary pension arrangements as soon as possible.

I am aware that Ministers have been consulting with ISPA on the proposals but the process is taking far too long. I have also written to the Leader of the House, Sir George Young to urge him to accelerate these reforms."

Notes:

1) In Prime Minister's Questions on 29th June Claire Perry asked:

"The Prime Minister alluded earlier to the contract between taxpayers and public servants, but there is also a contract between taxpayers and MPs. Does he agree that MPs should be in the vanguard of reforming pensions by reforming our own, so that we can look our public sector constituents in the face?"

The Prime Minister replied:

"I absolutely agree with my hon. Friend. Members of the House are public sector workers too, and we should be subject to exactly the same changes that we are asking others to take on. Therefore, the increase in contributions should apply to the MP system, even though we already pay in quite a lot. We are saying that right across the board, the increase in pension contributions is right to create a healthier long-term system."

Source: Hansard HC Deb, 29 June 2011, c956

2) Under the Constitutional Reform and Governance Act 2010, the new expenses watchdog, IPSA, can be given responsibility for MPs' pensions - but that has not yet happened.

3) In the Budget 2011 the Chancellor of the Exchequer, George Osborne stated:

"I confirm today that the Government accept Hutton's recommendations as a basis for consultation with public sector workers, unions and others. There should be no cherry-picking on either side. I believe that this House should also recommend similar changes to the pensions of MPs.

Source: Hansard HC Deb, 23 March 2011, c961 and HM Treasury, Budget 2011, para 1.132

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