Select Committee on Members Estimate Committee Second Report


55. One other issue has been mentioned to us but does not form part of the matters referred directly to us. The SSRB reported "We heard from a number of MPs who provided evidence to show that the London Supplement has not kept up with comparable allowances for living and working in London. PwC's research supports this view; their findings show that most other public sector employees in comparable roles in London receive between £3,000 and £4,000. We believe that the London Supplement should be increased to reflect the extra living costs found in London and therefore recommend that the London Supplement be increased to £3,500 and henceforth be increased in line with the Public Sector Average Earnings Index (ONS series LNNE) rather than the whole economy Average Earnings Index, since as explained in Chapter 3, we believe public sector comparators are more appropriate for MPs."[24]

56. This is one recommendation from the SSRB which the Government neither put before the House for decision on 24 January nor sought to be referred for consideration by this Committee. Some Members have drawn the Committee's attention to the financial position of MPs representing constituencies in outer or inner London. In considering other aspects of our root and branch review we will bear in mind the position of London MPs and await specific proposals for addressing them. The Government seems to regard the London Supplement as pay and we assume that London Members will also make representations to the Baker review on a new pay mechanism. We will take into account the London dimension when considering the other aspects of this review.

24   para 5.59. Back

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