Rules around MP redundancy payments should be relaxed and the body that sets members' pay should look at how the current package compares with more favourable international schemes, MPs have suggested. The Commons Administration Committee said loss-of-office payments should not be “contingent” on an MP closing down their office and instead should be treated more like a redundancy settlement.
In its report titled Smoothing The Cliff Edge: Supporting MPs At Their Point Of Departure From Elected Office, the committee said: “The loss-of-office payment should be treated as a redundancy package to support MPs when making their transition from the House to another vocation. Payment should not be contingent upon the completion of the winding-up tasks as this goes against the spirit of the payment and its intended function.”
During its inquiry, the committee found that some MPs experienced “financial challenges and hardship” after losing their seats, with some waiting months for their loss-of-office money. The 37-page report said that for MPs defeated at the 2019 general election, the median loss-of-office payment was £5,250 — equivalent to less than one month of their £84,144 salary.
