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Plans for the financial boost for 650 MPs have been unveiled by the Independent Parliamentary Standards Authority (IPSA). Any increase in salary will be based on October’s year-on-year three-month growth figure of 4.1 percent – expected to be above inflation – the watchdog said.
This means MPs are set to have their salary increased from £81,932 to £85,292.
The proposed rise comes seven months after the country was plunged into a strict lockdown as the coronavirus pandemic took hold.
The Chancellor’s furlough scheme is due to end on October 31.
The financial help has been a lifeline for millions of Britons whose workplaces have been forced to close.
Despite Rishi Sunak announcing an extension of furlough for workers affected by local lockdowns, millions around the country are still faced with uncertainty about their employment status.
On Friday the Edinburgh Woollen Mill Group was the latest employer to fall into administration, putting 24,000 jobs at risk.
And with hospitality venues in coronavirus hotspots set to be closed under Boris Johnson’s “three tier” lockdown system, anxiety among workers, many of the them on minimum wage, is rising fast.
The plan to hand MPs more cash has been ripped apart by Jeremy Hutton, policy analyst at the TaxPayers’ Alliance,
Mr Hutton said it was a sign the watchdog was out of touch with the needs of everyday Britons who are struggling financially.
He said: “IPSA must be tin-eared if it really thinks a pay rise for MPs should be considered this year.
“Public finances are in a parlous state, furlough is coming to an end and unemployment is rising.
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“A pay rise in parliament would be an insult to hardworking taxpayers who’ve had a very tough year.”
Mr Sunak will detail “the next stage” of the Jobs Support Scheme on Friday, ahead of new restrictions expected for the hospitality sector in parts of the North and the Midlands.
Regional leaders and unions have been calling for fresh financial support to prevent further layoffs when new restrictions are imposed.
A Treasury spokeswoman said the extension aims to provide a safety net for companies forced to close their doors just months after reopening under strict social distancing measures.
She said: “The Chancellor will be setting out the next stage of the Job Support Scheme later today that will protect jobs and provide a safety net for those businesses that may have to close in the coming weeks and months.”
The announcement will come as new figures showed the pace of the UK’s economic recovery has slowed considerably.
GDP was up 2.1 percent in August, less than half of what experts had expected.
When the furlough scheme ends at will be replaced by the less generous Jobs Support Scheme.
This will see the Government pay up to 22 percent of wages for workers who come back part-time.
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