MPs Get 30% Pay Rise, Average Worker Gets 20% Pay Cut


It was announced yesterday that MPs could receive a 30% pay rise, seeing their wages rise £20,000 a year to £86,000.  Meanwhile, the average wage earner in the UK has seen their wages drop 20% in real terms since 2008. The government is certainly Making Work Pay…just not for 99% of the population.

The Wage Drop of the 99%


Increased access to personal debt (credit cards, loans, store cards, buy now pay later, hire purchase etc.) has been masking the expanding gulf between cost of living and wage inflation for decades.

In the ten years between 1999 and 2009, the annual salary rose 13.6%.  During the same period, house prices went up 130%, a loaf of bread went up 147%, and a litre of petrol went up 42%.  This goes some way to accounting for the fact that personal debt rose during this period by 158%.

In the last five years, wages have increased by just 10%The UK Essentials Index which focuses on the kinds of everyday items which the UK’s working and non-working poor buy, showed an inflation rate of 33% during the same period. This means that for the poorest working people, their wages are worth 20% less than they were back in 2008.

It’s getting worse.  In the UK today, the cost of living is rising at four times the rate of wages.  In fact UK wages are falling faster than any other ‘developed’ country.  As a result, the three most expensive benefit payments in the UK are not ‘out of work’ benefits. 65% of the total spent on working age benefits, is going to people in work.

Tax Credits, Housing Benefit and Child Benefit, totaling £56.4bn a year, have been set up for the taxpayer to subsidise poverty wages.

The non -poor are also facing cuts in their income under the guise of austerity, with the average disabled person in receipt of state support losing £4,600 a year.

The Wage Hike of the 1%


The same Executives cutting their employees’ wages in the name of austerity were simultaneously approving inflation busting pay rises for themselves.

The average pay of Executives in the FTSE 100 rose an average of 12% in 2011 alone, with 25 companies boosting Executive pay by 41%.

The Banking Sector, whose excesses led to the banking bailout that triggered ‘austerity’ – are enjoying bumper bonuses.

The aptly named Rich Ricci, Head of the Barclays Bank investment division, received a £17.5m bonus on budget day this year.  It would take the average worker 656 years to earn this much.

RBS received £45bn from the UK taxpayer in bailouts after its investment division brought the bank to its knees.  Yet, in 2010, RBS increased the bonus pool for its investment arm by 5%, despite making a loss that year.

The MPs who facilitated the lax regulatory system which allowed for both the bailout, the exorbitant bonuses and the executive pay rises, will now receive their own reward.  As of 2015, MP pay will rise between £10,000 (15%) and £20,000 (30%) a year.  On top of this, our 650 MPs claim almost £90m a year in expenses – £138,461 each per year, no top of their salary.

We are not ‘all in this together’.

It’s Not a Recession, It’s a Robbery


The most important realisation the average UK citizen can make now, is that there is no such thing as austerity.  What is actually underway is a transfer of wealth, from the have nots to the have lots.  The government is not cutting spending, it is 4% higher now that in 2008.  It is transferring spending from public services that help the poorest in the land, to tax cuts, wage hikes and privatisations that help wealthiest in the land.

One cannot simply wait this thing out.  While the majority remain procrastinating moderates, the noose is simply tightened around our collective throats, choking off the possibility of a fight back.  In the words of Mark McGowan, The Artist Taxi Driver – even if you think you cannot stop this madness; as an absolute minimum you put up a resistance.

To quote an African Proverb, made famous by the Dalai Llama:

“If you think you are too small to change the world, try sharing a room with a mosquito.”

Be the mosquito.

Take Action

Sign the Petition – for no MP pay rises while they continue with austerity.

The Artist Taxi Driver is making a movie called ‘Its Not a Recession, It’s a Robbery’ going around the country interviewing those being enriched and defrauded by austerity.  You can sponsor the project here.

UK Uncut – join the campaign to get wealthy people and corporations to pay their fair share.

Time Banking – become a part of the new economy – of time not money.  You can use skills and talents to earn time bank credits, and cash them in for goods and services from others.

38 thoughts on “MPs Get 30% Pay Rise, Average Worker Gets 20% Pay Cut

  1. Pingback: Wealth inequality in UK now equal to Nigeria, UN report

  2. Pingback: Wealth Inequality in UK Now Equal to Nigeria, UN Report | Scriptonite Daily


  4. ah being a mp one can award themselves more then tell you tighten your belt don’t you love them for it two faced beggers with their hands forever in the till turpin had more humanity than this lot jeff3

  5. Pingback: A pay rise for MPs? | politicsbitesize

  6. Pingback: Frontline Friday 24th May 2013: Our favourite frontline blogs this week

  7. Pingback: MPs Get 30% Pay Rise, Average Worker Gets 20% P...

  8. “the government are certainly making work pay – only they themselves do little work without an adviser or civil servant lurking in the shadows, so are therefore making their delegation of work pay for themselves.

  9. The poor and average earner in the street seem to be an inconvenience to this government. Public services once again seem to be bailing out the overspending leaders of the country.

    Emergency services should not be treated as a business with profits its sole drive. They are there to provide an indiscriminate service to solely help the public in there time of need.

  10.  ” The government is not cutting spending, it is 4% higher now that in 2008″
    There is austerity in discretionary spending which then causes non discretionary spending (automatic stabilisers) to rise….. come on guys its sector balances

  11.  “The government is not cutting spending, it is 4% higher now that in 2008” due to automatic stabilizers, discretionary spending has gone down so non descretionary has gone up..thats what happens under “austerity” sector balances guys.

  12. I assume no-one’s interested in the facts but worth pointing out that the average salary since 2008 has fallen by 4% in real terms in the UK, not 20%. MPs’ pay has fallen by 7% in real terms over the same period. And, of course, Cameron, Clegg and Miliband have all opposed any pay rise for MPs, and one of the first acts of the Coalition back in 2010 was to give all ministers a pay cut.

  13. Funny…I also decided to blog about austerity today. I normally write light, personal blog stuff but I got so pissed off that I couldn’t write about fluffy stuff today. And then I read your blog post and, well, it’s even more enraging. I will follow through with the actions you suggested.

    • It is useful to focus on the process that is in play. The above link is to a blog that I think is very useful. It describes the difference between financial sector capitalists who are easily drawn into short term investing and capitalists that are tied in for the long term and therefore have more reason to invest in people and place. Importantly it explains the link between globalisation and the rise of the finance capitalists. Just as the bonus seeking bankers are very concious of their pay differentials, what we are seeing is MP’s not wanting to be so out of pocket that they can’t hob nob with the finance capitalists without looking like part of the loosing class. As the song goes….”which side are you on?” If they want a ten grand rise we know which side they are on. Its not ours, so they had better go.

  14. Worse Condem Gov ever, they fell for every corrupt trick in the book and now they want to profit from their mistakes whilst blaming the vunerable for the Federal Bank cancer that has effected global economies but then that was the intention to destroy the Euro.

  15. I have signed the petition but another action you can take is to contact IPSA and tell them you do not agree with any increase in MP’s salaries. I emailed them today at [email protected], copying my local MP in the email. I’ve had a reply from my MP saying he doesn’t believe this story to be true (lol) so I think its fair to say any reply I might get from IPSA should be interesting.
    If you don’t want to email them you can go to and share your views with them on their website.

      • Not sure if it’s cos your readers have all rushed to the IPSA website to share their views but I’ve been unable to post a comment for the past 10 minutes. Will keep trying and hopefully succeed before the end of the day.
        Would be quite funny though if the people brought down their website with a huge surge in traffic 😉

  16. Pingback: » RT @Scriptonite: MPs Get 30% Pay Rise, Average Worker Gets 20% Pay Cut #anons #anonymous #wikileaks #ukuncut #wowpet…

  17. Pingback: » RT @OccupyLSX: MPs Get 30% Pay Rise, Average Worker Gets 20% Pay Cut #anons #anonymous #wikileaks #ukuncut #wowpetit…

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