Prime Minister Keir Starmer is poised to introduce legislation that would add an extra 11 ministers to the government payroll, a move aimed at enhancing the functionality of his administration. The proposed law seeks to amend the Ministerial and other Salaries Act 1975, increasing the cap on the number of ministers who can receive salaries from 109 to 120.
Details of the Ministerial Salary Changes
Under the new plan, the number of paid Cabinet ministers would rise from 21 to 22. These ministers receive an additional £67,505 on top of their standard MP salaries. Other ministers, including those in junior roles, are compensated with amounts ranging from £22,000 to £31,000. For peers in the House of Lords, who do not receive parliamentary salaries, the pay can reach up to £104,360.
Financial Implications for Taxpayers
The total cost to taxpayers remains uncertain, but when factoring in pension contributions and employer national insurance, it is estimated that the additional ministers could cost up to £1 million per year. Currently, around 12 ministers serve without pay out of a total government size of approximately 120, which has been the average since 2010.
One notable figure not receiving a salary at present is Labour Party chair Anna Turley. Traditionally, this position is funded by the political party rather than the state.
Government Rationale and Broader Context
A government source explained to Politics Home that the amendment is intended to make ministerial office more accessible. They stated, 'The current Cabinet has the highest proportion of state-educated members in history, and the Prime Minister believes that ministerial office should not be reserved for those wealthy enough to fund it for themselves.'
Contrast with MP Pay Rises
This development follows a recent announcement that MPs will receive a 5% pay increase starting in April, raising their salaries to £98,599. The Independent Parliamentary Standards Authority justified this hike by citing the increasing complexity of the role and rising levels of intimidation faced by politicians. It also projected that MP salaries could reach £110,000 by 2029.
In comparison, more than a million NHS staff are set to receive a 3.3% pay rise, while the state pension will increase by 4.8%. The MPs' raise, which includes a 3.5% cost-of-living adjustment and a 1.5% benchmarking adjustment, exceeds both these figures and is well above anticipated inflation levels.
Additional Benefits for Peers
Peers in the House of Lords are also set to benefit, as their tax-free daily allowance is linked to the MP salary increase. This allowance is expected to rise from £371 to £390, providing further financial relief for members of the upper house.
The proposed changes highlight the government's efforts to balance operational needs with financial considerations, amidst broader debates over public sector pay and government efficiency.
