A cross-party committee has recommended giving outgoing MPs medals and more generous redundancy payments in findings that are likely to ruffle a few feathers.
The administration committee found some MPs experience “financial challenges and hardship” after leaving parliament, with some waiting months for loss-of-office money.
For MPs defeated at the 2019 election, the average loss-of-office payment was £5,250 – equivalent to just under one month of their £84,000 salary.
The group recommended exiting MPs get better pay-offs and also suggested giving them medals at a special ceremony to celebrate their contribution to public life could help.
“This could be an event with family and friends and / or presentation with a medallion of service,” the MPs said, saying eligibility could be decided by Commons authorities.
The committee said a lack of support for MPs who are leaving parliament and looking for their next career move could put some off a career in politics.
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, the group said.
Support for those leaving office is much more generous internationally, the inquiry found. In Germany, members of the Bundestag receive a pay-out equivalent to one month’s salary, around £9,000, for each year of service.
Outgoing Australian MPs can expect to receive either £31,000 or £62,000, depending on length of service, while those exiting the Canadian House of Commons receive severance of close to £70,000.
The committee said Independent Parliamentary Standards Authority (IPSA) should look at how Westminster’s system compares internationally to inform a potential future review.
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