While George Osborne has set down a 1 percent freeze on wage packets for all public sector workers, he approved a 10 percent pay rise for MPs. The pay rise was officially announced by IPSA, (the Independent Parliamentary Standards Authority). Ipsa confirmed that the move to hike the wages of the MPs will go ahead after having debated the move for several weeks. The pay rise of 10.4 percent on a typical wage of an MP pushes the yearly income up from 67,060 pounds to 74,000 pounds.
The fact that there has been a 1 percent freeze on the wages of public sector workers who have not seen a pay rise for years makes the move even more outrageous.
Controversy around the pay rise of MPs
David Cameron disagrees with the move and sees the pay rise as unacceptable. He does not agree that a pay rise of nearly 11 percent should be available to MPs during this time of pay restraint. People all over the country are pinching pennies and appealing to charity just to survive, and the top dogs are first in line for a whopping 10 percent pay rise. Disagreeing may not be enough. The public wants action, namely for Mr. Cameron to intervene to stop the move from going through. A petition from the public has already captured 450,000 signatures.
On the other side of the fence, IPSA defends the decision by pointing out that there is never a fair time to give MPs a pay rise. In the same vein, Ipsa goes on to say that if the move is left too long it could all end up in disaster, much like the expenses scandal of 2009. IPSA says:
“No-one can be in any doubt that consideration of MP’s pay is a toxic issue. A thousand and one reasons can be advanced for putting it off.”
Pay rise: disagreement from the inside
The leader of the House of Commons stood up to Ipsa saying that the government itself found the pay rise inappropriate. Politicians stood in line to decry the pay rise. Liberal Democrats, Greens, democratic unionists, and Ulster Unionists. Surprisingly four Labour leadership contenders also joined in. Everyone pledged to turn the pay rise down.
What has this got to do with Payday?
Very simply, who has the money and who does not? Who has to borrow from a payday? Do the MPs need to borrow from a payday lender? Is that why they earn so much money? So they can’t be seen taking out a payday loan and at the same time decrying the industry and blaming the lenders for all ill in the world.
Yvette Cooper, one of the Labour leadership contenders said of her new wage:
“I won’t take it, if that is impossible then I will put the money towards something like funding an apprenticeship or similar cause…”
Ms Cooper, here is a great idea. Why don’t you go stand outside a payday shop and when you see someone who is clearly too poor to take out a loan, give some of your money to him!