PM offers to forgo pension to set example on pay

By Rich Bowden, M&C Staff Writer Jan 17, 2008, 8:47 GMT

British Prime Minister Gordon Brown (middle) leaving his offices at 10 Downing Street 16th January 2008 for the House of Commons to attend the weekly Prime Minister\'s Questions. EPA/DANIEL DEME

(M&C) - Prime Minister Gordon Brown has set an example to fellow parliamentarians by offering to forgo his "grace and favour" PM's pension when he leaves office and taking a pay cut.

The PM's personal austerity measure will deny him an automatic £128,714 when he left office and a salary rise of £26,000.

Mr Brown is urging other lawmakers to accept a similar pay cut insisting they only receive 1.9 percent in staged rises in line with other public service sectors instead of a recommended 2.56 percent increase.

“We have to ensure that, in the public sector, awards remain consistent with the inflation target of 2 per cent,” said Leader of the House Harriet Harman.

"Under the current procedures of the House the process of determining pay, pensions and allowances rests with MPs," said Ms Harman announcing a review of MPs' pay.

"Many of us believe that it is unacceptable, and we know that the public do not accept that we should vote on our own pay and pensions. That is why I have today announced in my written ministerial statement a review of the procedures for setting MPs' pay and pensions in the future, with a view to examining options that find objective criteria for pay determination within a framework that does not require members to vote," she said.

The Press Association quoted Matthew Elliott, chief executive of the TaxPayers' Alliance, as saying: "It would be completely inappropriate for MPs to get a 2.56% pay rise. In these rocky economic times we all have to tighten our belts, and MPs should lead by example. Our parliamentarians are already very well paid and enjoy extremely generous pensions and expenses. Families are struggling under the weight of taxation, so MPs should not add to that burden."