MLA Pay Rise Approved
The independent panel responsible for setting salaries for members of the Northern Ireland Assembly (MLAs) has confirmed a proposed pay increase exceeding £14,000. Currently, MLAs earn £53,000 annually, a figure lower than their counterparts in Scotland and Wales. The new salary will rise to £67,200 per year starting from April this year.
The remuneration board, which announced the proposals last month, has sought input from MLAs, the Assembly Commission, and the Assembly Members' Pension Trustees regarding its draft determination. This board holds the authority to establish the salaries and pensions of MLAs.
Financial Sanctions for Government Formation Delays
In addition to the pay rise, the board has introduced financial sanctions applicable if an executive is not formed following the next assembly election or if the positions of first and deputy first minister become vacant at any time. Under these sanctions, MLA salaries would be reduced by 10% after six weeks, with further 10% reductions at twelve and eighteen weeks respectively, should government formation not occur within the statutory six-month period.
The board was established last year with backing from the largest Stormont parties but has faced criticism from the Traditional Unionist Voice (TUV) and People Before Profit, who argued it would result in substantial pay increases for MLAs.
Alan Lowry, chairperson of the board, stated: "The board is required to balance a number of issues - the importance and complexity of an MLA's role, the financial viability of a political career and the levels of pay for political representatives in peer parliaments."
He added, "We are confident that the evidence underpinning the draft determination remains sound."
Lowry acknowledged the public's reaction to the draft announcement, describing it as "overwhelmingly critical."
"It is clear that the public have been frustrated by the 'stop-start' nature of government that has impacted the political institutions in recent years," he said.
"That is why we are also confirming our proposals in imposing financial sanctions if the institutions should cease to function in their normal way."
Comparative Salaries Across Legislatures
For context, members of the Scottish Parliament receive £74,507 annually, while members of the Welsh Parliament earn £76,380. At Westminster, Members of Parliament (MPs) have a salary of £93,904 per year. Members of the Dáil, the lower house of the Irish parliament, earn €118,284 (£103,416).
Public Reaction and Context
The timing of a 27% pay increase for MLAs has been met with criticism, especially as many families face challenges paying energy bills. While MLAs have noted that the timing was beyond their control, they emphasize that the parameters for the independent board’s decision were set by themselves. The board benchmarked MLA salaries against those of political colleagues in other parts of the UK and Ireland, making a significant rise likely due to the existing salary gap.
The public backlash has already begun and is expected to resurface during future public sector pay disputes. However, from the perspective of those within the political institutions, addressing pay parity was necessary to ensure that politicians' salaries are aligned with other public sector roles such as teachers and nurses.
