MP pay rises outstrip average salary by 4%

MP pay rises outstrip the average UK salary by 4% over the last decade

Research by RIFT Tax Refunds has revealed that over the last decade, the average earnings of a member of parliament has increased by a total of 28%, 4% more than the average UK wage.

With another new PM gracing the steps of Downing Street, RIFT took a look at what sort of pay boost Rishi Sunak can expect by taking the top position in politics, as well as how the level of earnings enjoyed by MPs has changed in recent years.

The research shows that currently the average MP earns a gross annual income of £84,144. 154% more than the average UK earnings, with MPs having enjoyed a 2.7% pay increase in 2022.

What’s more, the average pay of an MP has increased by a notable 28% in the last 10 years, versus just a 24% increase in the average UK earnings. On an average annual basis, this means MPs have seen a yearly pay increase to the tune of 2.3% versus just 2% for the average UK person.

Having previously held the position of Chancellor of the Exchequer, Rishi Sunak would have already enjoyed a secondary salary of £67,505 a year, boosting his MP’s salary of £84,144 to a lofty £151,649 annually.

However, having now taken the hot seat at No.10, his earnings have climbed once again, with the position of prime minister netting him £75,440, equating to a total level of annual earnings to the tune of £159,584 when coupled with his MP’s salary.

This means Rishi Sunak is now earning 5.2% more per year than he was in his previous role as chancellor, 89.7% more than the average MP and 380.9% more than the average UK person.

Of course, at £65,321 per year, his tax and national insurance contributions are also considerably higher than the £6,843 paid on the average UK salary.

CEO of RIFT Tax Refunds, Bradley Post, commented:

“Politics can be a cut throat world and even making it to the top spot doesn’t guarantee a long and successful career, as we’ve seen in recent weeks.

But with the very top jobs also coming with some rather attractive pay rises, it’s easy to see why so many career politicians will have their eyes set on number ten.

However, while many of us may appreciate that such a prestigious political position will inevitably pay a higher wage than the average UK salary, it’s perhaps harder to accept that members of parliament have enjoyed a consistently higher level of income growth over the last decade when compared to the average person.”