UNDER new proposals from the watchdog that sets their salaries, MPs could receive a pay rise over public sector workers.

The Independent Parliamentary Standards Authority (Ipsa) calculates salaries for members of the Westminster parliament 

The watchdog has set out a proposal that it be given new powers to vary MPs' annual pay "below or above” public sector pay.

It comes in a week when tens of thousands of workers in the public sector in England and Wales had their pay frozen, including for teachers and police officers.

It was also revealed yesterday that a 3% pay rise for NHS staff in England - thought to cost £2.2 billion - will come out of the NHS budget.

However, the watchdog has said that in the next recommendation, MP pay could potentially decrease.

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An Ipsa spokesman said: “As we make clear in the consultation if current trends continue, we think it is more likely that we would be making a downward adjustment rather than an upward adjustment to the figure we use to determine pay for members of Parliament.”

A four-week consultation process is to be launched by the watchdog with conclusions coming in the autumn and an announcement on any pay change expected in the spring.

For the past five years, MPs' pay has been linked to public sector pay and updated every year by Ipsa to avoid members setting their own pay.

MPs are currently paid £81,932 a year and a recommended pay rise from Ipsa last year of around £3000 was rejected due to the pressures of the coronavirus pandemic.

Pay freezes for public sector workers have been heavily criticised.

The Police Federation of England and Wales said yesterday that it no longer has confidence in Priti Patel after the Home Secretary announced the freeze for officers earning more than £24,000. Those earning under that level are to receive an uplift of £250.

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The decision was labelled an insult by one chief constable and the federation's chairman John Apter has said there is still time to regain the support of the 130,000 rank-and-file officers his organisation represents.

He said: "It’s not too late to do what the Health Secretary did, which is do a U-turn and make the announcement for the NHS staff.”