MPs should get medals and bigger payoffs, says report

Exit payments compare poorly with other countries, says cross-party group of MPs

Outgoing MPs should get medals and more generous redundancy payments in a bid to help them move into other jobs, a cross-party committee has suggested.

Some MPs experienced “financial challenges and hardship” after leaving parliament, with some waiting months for loss-of-office money, the administration committee found.

For MPs defeated at the 2019 election, the average loss-of-office payment was £5,250 – equivalent to just under one month of their £84,000 salary.

The committee found that Westminster’s pay-outs compared poorly with comparable countries, with an ousted MP in Germany who has served for 18 years getting £162,000 compensation.

The group also suggested exiting MPs could be given medals at a special ceremony to celebrate their contribution to public life.

“This could be an event with family and friends and / or presentation with a medallion of service,” the MPs said, saying eligibility could be decided by Commons authorities.

The committee said a lack of support for MPs who are leaving parliament and looking for their next career move could put some off a career in politics.

Loss-of-office payments should not be “contingent” on an MP closing down their office and instead should be treated more like a redundancy settlement, the group said.

Support for those leaving office is much more generous internationally, the inquiry found. In Germany, members of the Bundestag receive a pay-out equivalent to one month’s salary, around £9,000, for each year of service.

Outgoing Australian MPs can expect to receive either £31,000 or £62,000, depending on length of service, while those exiting the Canadian House of Commons receive severance of close to £70,000.

The committee said Independent Parliamentary Standards Authority (IPSA) should look at how Westminster’s system compares internationally to inform a potential future review.

In the UK, loss-of-office payments are only paid out if IPSA, the body created in the wake of the expenses scandal to set MPs’ pay, deems that certain “wind-up” criteria are met.

They include issuing redundancy notices to staff, submitting all business cost claims associated with running their MP offices and paying any outstanding debts to IPSA.

Sir Charles Walker, chairman of the committee, said the work of MPs is “a noble enterprise, and one that should be defended, encouraged and recognised”.

“However, it is clear that without the right support for members when they leave parliament, we may well be putting off talented candidates from seeking election to the House of Commons,” he added.

Sir Charles said that “if the public wants the best individuals to represent them in the House of Commons, it is vital that MPs receive the support they need to do – and leave – their jobs well”.

It comes as MPs’ staff hold a strike ballot, having rejected a “woefully inadequate” pay increase offer of 4.9 per cent. Unite’s parliamentary branch passed a motion asking for a rise of inflation plus 2 per cent.