MPs' Pensions - are they what they seem?

11/02/2008

Recently MP’s decided to increase their salary only at inflation level of 1.9%, however they also agreed to raise the Basic State Pension (BSP) at 3.9%.

 

On the face of it the rise in BSP looks good. But, the MPs' rise from £60,277 to £61,820 or £29:67 per week put against the BSP rise from £87:30 to £90:70 or £3:40 per week shows how percentage rises can vary depending on starting level.

 

It is amazing that MPs' salaries, pensions, expenses, housing allowances etc can always be afforded, yet our government say they cannot afford to raise the BSP to the official poverty level of £134 per week, despite there being over £34 Billion in the National Insurance Fund. The BSP is currently 15.7% of the average British wage and the lowest in Europe.

 

No doubt our “generous” rise in pension will be swallowed up by higher utility bills and council tax, let along higher food costs. This year is the 100th anniversary of the BSP which started at 25% of average wages.

 

 

John Cherrett- Chairman Poole & District Pensioners Association