§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether, taking the £ sterling as having a purchasing value of 20 shillings on the date when Members of Parliament's salaries were last fixed in 1964, to what extent on an annual percentage and cash basis the salary has been reduced in purchasing value to the latest convenient stated date.
§ Mr. Patrick JenkinThe current gross figure for Members of Parliament's salaries inclusive of the £1,250 notional expenses allowance was fixed in November 1964 at £3,250 per annum, payable from 16th October 1964. Taking the purchasing power of a members' salary to be £3,250 in October 1964 its purchasing power in September 1970, the latest date for which information is available, is estimated at £2,495. This is equivalent to an average annual decline of 4.4 per cent. These figures do not take into account the effect on any individual of the secretarial allowance (maximum £500 per annum) which was introduced in 1969.
These estimates are based on the movement in the Consumer Price Index from 30W 1964 to 1969 adjusted by the movement in the Index of Retail Prices for the months at the beginning and end of the period.