Are British MPs underpaid?

Do our MPs get meagre salaries?
That depends on which MPs you compare them with. Two years ago, when the Senior Salaries Review Body that advises No.10 analysed international political pay, it found that French deputies received 5 per cent less in salary than British MPs, Australian MPs 7 per cent less and Spanish deputies 52 per cent less. Today, given the sharp fall in the pound, the British MP's salary looks less competitive. And at £64,766 it is peanuts compared to the salary of a US congressman (£105,000) and to the average pay of a Japanese MP, who receives a whopping £215,000, mainly in salary and bonus. As 26-year-old Taizo Sugimura memorably announced on being elected an MP in 2005: "Now I can buy the BMW I've wanted for so long." But then again, salary is only one part of 'pay' - and often the smaller part.

So what do our MPs get in expenses?
In 2007 the average expenses claim made by a British MP was £135,600 (the lowest was £44,551; the highest £185,421). A fair chunk of their claims are for travel - MPs can claim for business-class air fares and first-class rail travel for parliamentary business inside the UK; for three visits a year to European institutions; and up to 15 return journeys a year for spouses or children. A bigger component still is the allowance for staff - up to £90,505 a year. MPs are allowed to employ family members for this and about a third of them do, in the process raising their household income by a third, on average. Another big component is the 'additional costs' allowance (max £23,083) that MPs outside inner London can claim towards the cost of a second home - anything from rent and utility bills to, as we now know, duck houses and bath plugs.

Are expenses equally generous in the US and Japan?
And then some. But they tend to be more clearly linked to parliamentary duties. Thus the Japanese may give their MPs generous travel allowances, but when it comes to housing, they cram them into student-style accommodation blocks. MPs who prefer to opt for a second home in Tokyo must pay for it themselves. As for America, their politicians get no housing allowance at all. On the other hand, House Representatives get huge office allowances, varying from $1.4m to $1.9m, which allow them to employ up to 60 full-time staff members. But they are not allowed to employ a close relative, unless he or she was previously working for them.

What about European MPs?
When salary and perks are considered together, Britain's MPs do markedly less well than, say, members of France's National Assembly, whose basic salary, given the weak pound, now appears quite a bit higher than their British counterparts'. In any case, more than 80 per cent of them bolster that salary by earnings from a second elected position (being a city mayor, for example). On top of that, French deputies get unaudited expenses for transport, clothes, receptions and the like; free first-class rail travel on the national network; and access to a fleet of private cars. They also qualify for housing loans at extremely low interest on amounts up to £69,968; they have their own pension scheme which double-counts their contributions; and they have the right to continue frequenting the Assembly building after losing their seats, thus being able to take up the option of a lucrative new profession as lobbyists.  

Is it a similar story elsewhere?
There's even more gravy splashing around in Italy, where the perks and corruption of the political class is taken for granted. Italy's MPs take home £8,000 a month, post tax, in pay and allowances; they also get special food allowances, discounted air travel, in-house hairdressers and free individual tennis coaching. After just 30 months of service, they can get a pension on turning 60. Italy's parliament costs more to maintain than any other in Europe. But even the Italians look modest compared to Europe's MEPs (see 'Brussels gravy train', below), who in turn are outclassed by MPs in Kenya. They get a minimum of £90,000 a year in salary and untaxed allowances - in a country where half the people live on less than 75p a day.

Are any systems of paying MPs noted for their probity?
Yes, Sweden's, where members of the public have a right to secure almost any information they want about their MPs. A Swedish MP's monthly salary is 52,900 krona (£4,235) - though the Speaker of the House and the PM get double that. Other sources of income must be made public. Travel is covered by parliament, but must be undertaken in the cheapest possible way and booked through the parliamentary travel office. Second homes in Stockholm for members living outside the capital are provided rent-free by parliament, which owns some 250 flats; those choosing to make other arrangements receive a flat K7,000 (£560) a month, but can't claim for improvements to that accommodation. The system comes down hard on those who abuse it. In 1995 the Social Democratic party deputy PM, Mona Sahlin, was forced to resign her cabinet post after she was found to have used her ministerial credit card to buy nappies for her baby. (She has since been elected her party's leader.)

Are our MPs relatively honest?

They're a lot less venal than, say, India's, where about 10 per cent of MPs in the outgoing parliament did not take part in a single debate, almost a third of the newly elected parliament faces criminal charges or investigations, and dozens have been investigated in murder inquiries. And although British MPs caught up in the 'cash for questions' scandal were slated for becoming too close to lobbying firms, they're amateurs compared to politicians in Washington, where people speak of a 'revolving door' between Capitol Hill and K Street (home of the big lobbying agencies). More than half of the Republicans who lost their seats in 2004 and 2006 now work for such agencies.  

The Brussels gravy train
MEPs get the same salaries as MPs in their national parliaments; but in terms of perks, they're way ahead of the game. British MEPs get as much as £363,000 a year in expenses without receipts, including £250 a day for 'subsistence allowance' - aka the 'sign in and sod-off' payment. Travel expenses of as much as £90,000 are permitted: MEPs who fly are reimbursed for the cost of an open economy ticket plus allowance for distance travelled, which means that 'if you can't pocket half of what you get, you're not trying'. They also get almost £230,000 for staff/office expenses, and until now could employ family members. Den Dover, the Tories' former chief whip in Europe, was expelled from the party when found to have paid £750,000 in such allowances to a family-owned firm run by his wife. MEPs also get free medical treatment and a generous 'non-contributory' pension.

The EU Parliament has now been shamed into ending the travel scam and banning employment of family members; but other reforms may have to wait. No receipts are currently required for office expenses; but all attempts to introduce them have been voted down. In March almost 70 per cent of MEPs voted to keep expenses secret, though some British, Dutch and Nordic parties have promised their MEPs will publish accounts.
More on the Brussels gravy train ·