MPs' Pay and McCloud Consultation

Today we have published our report following the consultation on periodic adjustments to MPs' pay carried out in October 2020.

In December 2020 we announced that MPs' salaries for 2021-22 would remain unchanged.

The report contains the formal determination which gives effect to that decision and more information on the consultation responses we received and how they informed our decision.

We also set out some reflections on the future approach to setting MPs’ pay which may lead to further consultation in due course.

Read the full report and summary.

MPs' Pensions and the McCloud Judgment Consultation

Today we are also launching a consultation on our policy response to the McCloud court case. This will affect the pension arrangements for some, but not all, serving MPs, and some former MPs.

The proposals arise from the McCloud court case which found that some of the transitional arrangements made to other public sector pension schemes in 2015 resulted in age discrimination. We have considered whether the transitional arrangements we put in place for the MPs’ Scheme need to be changed as a result.

In the consultation, we set out our view that some members were treated unfairly in the transition to the CARE scheme in 2015.

As a result, we propose that people who were in the impacted group will be given a choice to either stay in the CARE scheme or return to the Final Salary scheme for a period of several years starting from May 2015.

In line with the government’s approach to other schemes, we also propose to close the Final Salary Scheme to future accruals and consult on when this should happen.

We recognise that this news could be unsettling for those affected and we are working closely with the PCPF Trustees to ensure that affected Members receive further communications in due course.

Am I affected?

If you became an MP for the first time on or after 8 May 2015, you are not affected by the proposals.

If you were an MP between 1 April 2013 and 7 May 2015, you are likely to be affected. Not everyone will be affected in the same way.

The consultation document explains how different people are affected.

What do I need to do?

You do not need to make any decisions about your own situation now, but you may find it helpful to read the consultation to understand the choices you may need to make later. The PCPF Trustees are aware of the consultation and will be contacting impacted members soon.

All MPs, whether personally affected or not are welcome to respond to the consultation. The consultation seeks feedback on how and when we ask impacted members to make decisions, and when the changes would be implemented.

How can I find out more?

You can read the consultation document, and respond.

The PCPF are holding a Pensions Surgery for MPs on this and other pension topics on Wednesday 17 March, from 12:00-14:00, which IPSA staff will also attend. To register, please contact the PCPF Secretariat: pensionsmp@parliament.uk.

The PCPF are not able to provide individual pensions figures as a result of this consultation. But if you have any questions please contact the PCPF Secretariat (email above) who may not be able to answer all your questions at this stage but will endeavour to do so in due course.