Labour has swept to power following a landslide general election victory, which will provide a nice pay rise for new Prime Minister Sir Keir Starmer as well as his newly-formed cabinet.
The general election saw the Labour Party form the government and gain more than 200 seats, while the Conservatives lost 250.
The new and returning MPs on all sides of the House of Commons will get plenty of perks such as access to reduced bars and restaurants in parliament.
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But they will also face regular public scrutiny and need to pay to run their own office and staff, as well as London living costs so they can take part in debates.
We reveal how much MPs get paid.
How much is an MP paid?
Parliamentary salaries are set by The Independent Parliamentary Standards Authority (IPSA).
The basic annual salary for an MP from 1 April 2024 is £91,346. This figure rose 5.5% annually, which has proved controversial when you consider that inflation is now at 2% and the average UK salary is around £35,000.
MPs can also get expenses to cover the costs of running an office and employing staff as well as having somewhere to live in London or their constituency and travelling to and from Parliament.
Politicians can earn more if they get senior roles. Keir Starmer can look forward to an extra salary of £75,440 as Prime Minister on top of his basic pay.
His MPs may also be hoping for a cabinet role.
If an MP gets a Secretary of State post, they could earn £67,505 on top of the basic salary, while ministers get £31,680 extra. MPs who miss out on cabinet jobs or opposition politicians could also earn more if they chair a parliamentary committee. This boosts their salary by £18,309.
John O’Connell, chief executive of the TaxPayers’ Alliance, questions the fairness of the pay levels. “Hardworking Brits will find it difficult to look favourably on MP’s wages,” he says.
“The stark reality is that while MPs have recently received an inflation busting pay rise, struggling households have grappled with frozen thresholds and relentless price rises. Pay should reflect performance. The best way to achieve this is by linking MPs' pay to the country’s economic performance.”
But Alice Haine, personal finance analyst for Bestinvest highlights that while £91,000 may seem generous particularly for younger MPs at the start of their career, older and more experience politicians could command a higher wage in the private sector.
"Many people choose to go into politics at a time when they have already carved out successful careers in law, finance and business," she says.
"As a result, the £91,000 remuneration will never be a match for their previously high salary, but it will serve as a suitable income for their work as an MP alongside other sources of income.
"Ultimately, serving as an MP should not be considered a career only the wealthy can afford to pursue. Instead, the pay should be sufficient to attract all walks of life, in turn ensuring that all segments of society are represented in the House of Commons."
Haine highlights that a career as an MP is extremely high profile and can be very stressful.
"While hugely enjoyable for those passionate about improving society and the wider economy, working as an MP in the public eye, where every word you say and action you take is subjected to intense scrutiny, and often criticism, can be extremely taxing," she says.
"Plus, the 650 Members of Parliament must contend with the security risk that comes with such a prominent role, with two MPs murdered in the line of duty in recent years, and are often subject to abuse both on social media and in public."
Do MPs still get paid if they lose their seat?
High-profile politicians such as Levelling Up Secretary Michael Gove and Labour’s Harriet Harman already said they were stepping down but there were plenty of Tory veterans who lost their seats.
Former Prime Minister Liz Truss failed to hold her constituency seat and was displaced by Labour, while former ministers such as Jacob Rees-Mogg and Penny Mordaunt also lost the backing of voters.
It is not all bad news for them though.
While most workers don’t usually get paid if they leave their jobs, there is compensation in place if an MP loses their seat.
This is known as a winding up payment and is worth four months’ salary but only for those who have been an MP for two consecutive years.
MPs who stand down can get an allowance to cover the costs of shutting their office down.
Pension perks
It isn’t just the pay packet that is attractive for MPs. Political pensions are much-sought after.
MPs pay into a Parliamentary Contributory Pension Fund. This is a defined benefit scheme that provides a retirement income linked to an MP’s final earnings and the number of years of service.
That is better than the defined contribution schemes that most private sector workers and constituents are used to. The pension scheme for MPs is extremely generous compared to what is available in the private sector, says Laith Khalaf, head of investment analysis at AJ Bell.
“It is not as expensive to run as other public sector schemes though in the grand scheme of public sector schemes it’s not hugely expensive because the number of members is extremely limited compared with the behemoths of the NHS and Teachers Pensions plans,” he says.
“Unlike most public sector schemes it’s also funded, which means there is a pool of assets there providing the benefits for retired members.”
Khalaf adds that while the scheme is generous, the career of an MP is extremely precarious as they need to reapply for their job at least once every five years.
“If they lose their seat then the benefits they have built up are preserved until retirement, but they don’t build up any more entitlement,” he adds. “Probably one of the most pernicious aspects of the MPs’ defined benefit scheme is it entirely detaches them from the pensions available to their constituents, and of course they make the rules that govern those pensions.”
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