Prime minister Sir Keir Starmer's top aide Sue Gray reportedly received a pay rise that surpassed his following the 2024 general election in July.
The news has sparked outrage in the Government because other Labour Party special advisers feel they have been underpaid, the BBC has said.
One source said: “It was suggested that [Ms Gray] might want to go for a few thousand pounds less than the prime minister to avoid this very story. She declined.”
However, Government sources denied the assertion about the chief of staff, according to the Guardian.
“This allegation is categorically untrue,” a source said. “Sue Gray had no involvement in any decision on her pay. She was informed of her salary after this had been set.”
Business secretary Jonathan Reynolds dismissed suggestions that Sir Keir intervened to increase her pay.
“There is, and has always been in our system, officials who are paid more than politicians, whether that’s in local government or in national government,” Mr Reynolds told LBC.
“I can understand why that generates a bit of interest, but as long as the proper process has been followed, that is how we do these things.
He added on Sky News: “I don’t get to set the pay for my own advisers who work directly for me. So there’s a process, we don’t have political input into that.”
On whether Sir Keir personally intervened to increase Ms Gray’s salary, Mr Reynolds said: “There’s a process that sets these things. It is widely recognised. It’s long-standing. It hasn’t changed and that is how pay bands are set.”
So how much do Ms Gray, MPs, and the prime minister earn?
Here is what we know.
How much does Sue Gray get paid?
According to the BBC, Ms Gray receives a salary of £170,000. This is £3,000 more than Sir Keir, whose salary is £166,786.
The BBC said several Whitehall sources had revealed Ms Gray’s pay rise.
She joined the Labour Party in November 2022. She left her role as the head of the UK Civil Service's Propriety and Ethics Team, where she was notably involved in Partygate investigation.
How much do MPs get paid?
MPs receive a base salary of £91,346 annually. They also receive expenses to cover the costs of running an office; employing staff; having somewhere to live in London or their constituency; and travelling between Parliament and their constituency.
How much is the prime minister paid?
The prime minister is entitled to receive two salaries.
He or she earns £80,807 (the BBC says only £75,440 is claimed) for being the prime minister and a base salary for MPs of £91,346. This amounts to £166,786.
Former prime minister Boris Johnson received £164,080 per year. Another former prime minister, Theresa May, earned £153,907 — slightly more than £10,000 less.
Former prime ministers are entitled to a severance payment of 25 per cent of their annual salary.
In addition, they are eligible to receive the £115,000 public-duty costs allowance, which is intended to assist with office and secretarial expenses "arising from their special position in public life”.
