Peers hand themselves an inflation-busting 3.1 per cent pay rise hiking their daily tax-free pay to 323

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PEERS are handing themselves an inflation-busting 3.1 per cent pay rise in April hiking their daily, tax-free pay to 323.

The move comes after the House of Lords decided to link allowances to MPs pay increases.

Peers have handed themselves an inflation-busting 3.1 per cent pay rise, which will hike their daily tax-free pay to 323

But in contrast to MPs, peers do not pay income tax or National Insurance.

Critics also point out that MPs pay is linked to average weekly earnings in the public sector.

Peers receive expenses on top of the allowance for every time they are in the upper chamber.

The House of Lords is due to sit for around 150 days this year, so peers could get nearly 50,000.

With inflation at 1.4 per cent, TaxPayers Alliance boss John OConnell said: This looks like a plum deal for the Peers but a rum deal for the taxpayer.

These allowances are meant to cover costs of working in Westminster to make sure the best can serve, not to offer the Lords and Ladies a large tax-free increase.

But a Lords spokesman said: Between 2010 and 2018, the daily allowance was frozen.

In the last decade, the House of Lords daily allowance has increased by 4.3 per cent.

In that same period, the salaries of MPs went up by more than 20 per cent.