MPs' Pay and Expenses Budgets Soar by £30 Million Amid Salary Rise
The Independent Parliamentary Standards Authority (Ipsa) has approved a significant increase in funding for MPs' pay and expenses, with budgets set to rise by £30 million this year. The Commons watchdog is planning to spend £300 million over the next 12 months on politicians' salaries, office costs, and business expenses, marking a substantial jump from the £268 million originally budgeted for 2025-26.
Budget Increases and Salary Rises
This increase comes despite repeated warnings from Treasury ministers that Ipsa is not being compelled to control costs in the same stringent manner as Whitehall departments. The budget hike has been signed off by a cross-party committee and will require final approval from the House of Commons.
Under the new plans, staffing budgets are set to increase by 7 per cent, which includes a 5 per cent pay award for MPs' staff. The total staff budget has risen dramatically from £103 million in 2019 to a proposed £184 million in the coming year. This includes an allocation of £7.7 million specifically designated to tackle backlogs in parliamentary work.
Enhanced Provisions and Allowances
Ipsa has pointed to higher spending by MPs as a primary driver for the additional funding requirements, but it has also made provisions more generous. Each MP office will now be able to spend up to £4,000 on health, wellbeing, and development initiatives for staff.
Accommodation allowances have also seen increases, with London MPs receiving a 6.3 per cent uplift and MPs from other parts of the country getting a 5.2 per cent rise, adding approximately £900,000 annually to costs. Notably, Greater London MPs are now permitted to rent properties in Westminster even if they live within commuting distance, a change that further contributes to the budget expansion.
Salary Increases and Future Projections
From this month, MPs have received a 5 per cent pay rise, bringing their salaries to £98,599. This increase is higher than those awarded to NHS staff and most public sector workers. Ipsa, which sets MPs' pay levels, has indicated that salaries will continue to rise rapidly, with an aim to reach £110,000 by 2029.
In a memo to the Speaker's Committee, Ipsa stated that most of the budget estimate comprises routine budget adjustments and inflationary increases. The document elaborated on the evolving roles of MPs and their staff, citing unprecedented levels and complexity of constituency casework driven by global and domestic events, as well as economic pressures.
Security Concerns and Casework Demands
The watchdog highlighted rising challenges to MPs' safety from abuse and intimidation, both in person and online, noting that heightened security measures bring additional workload and costs. While MPs' security costs are largely covered by House of Commons budgets, other factors have contributed to the budget surge.
Ipsa's original estimate for MPs' pay, staffing, business costs, and expenses in 2025-26 was £268.5 million, compared to a final outturn of £259.7 million in 2024-25, excluding general election-related spending. However, in February, Ipsa requested an extra £12.7 million, attributing this to a significant increase in constituency casework. Specific drivers mentioned include the situation in the Middle East and domestic policy changes such as benefit reform and inheritance tax adjustments for farmers.
Treasury Concerns and Efficiency Demands
In a letter to the Speaker's Committee, Treasury Chief Secretary James Murray expressed concerns about the budget increases, noting that Ipsa's funding requests would not have been approved if it were a normal government department. Murray emphasized the challenging fiscal context and stated that increased utilization of existing budgets would not normally justify access to additional reserves.
He called for Ipsa to drive efficiencies, strengthen forecasting and cost controls, and manage future pressures within existing settlements rather than relying on further budget growth. The committee, while approving the extra funding, acknowledged the Chief Secretary's advice and agreed that Ipsa must continue to pursue cost-effective measures.
Commitment to Democratic Funding
Ipsa chair Richard Lloyd defended the decisions, stating that the funding plans underline the commitment to providing adequate resources for democracy in the UK. He emphasized that MPs and their staff should be remunerated appropriately and receive the necessary support to carry out their parliamentary duties effectively.
The committee concluded that the supplementary estimates meet the requirements of the Parliamentary Standards Act, being consistent with the efficient and cost-effective discharge of Ipsa's functions. They have committed to requiring Ipsa to produce taut and realistic main estimates in line with HM Treasury's managing public money guidance moving forward.
