§ Mr. Watkinsonasked the Lord President of the Council if he will make a statement about the pay and allowances of Ministers and Members of Parliament.
§ Mr. FootThe Government propose that parliamentary pay for all Members of this House and salaries for Ministers and Office Holders in the other place should, in line with pay policy, be increased by 5 per cent., subject to a maximum of £208 a year. Members who agreed to forgo the £312 increase last year because their total earnings exceeded £8,500 should continue to forgo that increase in order to comply with the current pay limits.
The Government have not been able, because of pay policy, to take any action to settle the future basis for determining Members' pay. However, the Top Salaries Review Body recommended in 1975 that Members' pay should be reviewed every two years, and so the Government now propose that this year's increase of £208 should be added to the proper rate of £8,000, which is the rate for pension purposes. The main rate actually in payment would go up from £6,062 to £6,270.
As for Members' allowances, the Government propose that the annual limit for secretarial allowance should be increased by 5 per cent. to £3,687. Additional costs allowance is linked automatically 206W to Civil Service subsistence rates, which are due to be reviewed with effect from 1st July.
I will shortly put before the House the necessary motions to approve the increases which under the 12-months rule would take effect from 13th June 1977 for Members' pay and secretarial allowance and from 30th July 1977 for the salaries of Ministers and Office Holders in the other place.