MPs in line for £2,000 pay rise

MPs have already agreed a 3% pay rise from next month

MPs should receive a £2,000-a-year pay rise for the next two years, according to the senior salaries review body.

If politicians vote for the rise, it would come on top of the 3% increase MPs will already get next month.

The review body also calls for Tony Blair and the rest of the Cabinet to take their full salaries as soon as possible to end what it describes as a "distortion" in the system.

Cabinet members currently do not draw their full entitlement, although Downing Street has previously denied this has angered some senior ministers.

The policy remains the same after the new report, published on Friday, as part a review to be conducted every three years to see if MPs' pay is falling behind.

Pay falling behind

A report from Hay Management Consultants for the review body found politicians had fallen behind those with similar jobs in both the public and private sectors.

It said that those with similar public sector jobs to MPs would be receiving £54,800 and those in the private sector more.

Political salaries from April 1

Prime Minister £116,339

Lord Chancellor £172,279

Cabinet ministers £99,793

MPs £49,822

MPs salaries will rise to £49,822 on April 1 under changes already agreed.

And if the latest recommendations are accepted, that figure would increase again to £51,822 this year.

An extra £2,000 would follow next year on top of whatever rise comes through the present rating system, which is linked to civil servants' pay.

Special payments

The review body says ministers in the Commons should not receive any special extra payments as they would benefit from the proposed MPs' pay increase.

But ministers in the House of Lords should get the £2,000 extra because they receive no salary, only allowances.

From April 1 Mr Blair will take £116,339 of his £163,418 entitlement.

Cabinet ministers will take £99,793 out of a possible £117,979.

Lord Irvine, the Lord Chancellor, will remain the highest paid member of the government after next month's rise, with a salary of £172,279.

The review body also proposes the daily allowance for peers should rise from £37 to £60, with an increase from £84 to £120 to the overnight allowance to reflect hikes in hotel bills.