17 Jan, 2008
Nicola York - 17-Jan-2008
Minister Gordon Brown has agreed to scrap his gold-plated pension
scheme in a bid to lead the way in reforming MPs' salaries and
Brown made the announcement while calling on MPs to reject an
independent review's call for them to receive a pay rise of
2.56 per cent.
Instead, Brown is urging them to vote for a pay rise of 1.9 per
cent to bring them in line with policemen and nurses.
Conservative leader David Cameron called for the MPs'
final-salary scheme to be closed to new entrants earlier this week,
saying he wanted to end the "pension apartheid' between
Westminster and private sector workers.
Rather than receiving his pension worth half his salary when he
leaves office, Brown will now wait until he is 65 like everyone
The Senior Salaries Review Body recommended that all future prime
ministers and Lord Chancellors should wait until 65 to receive
their pensions but Brown said he and Lord Chancellor Jack Straw
would abide by this rule themselves.
Brown also backed the review body's call for changes to
MPs' pension schemes to reduce the cost to taxpayers.
These include ensuring that taxpayers pay no more than 20 per cent
of MPs' pension costs - at present taxpayers are paying almost
40 per cent.