MPs should get £160,000 payoff and a medal if they are kicked out of office, report suggests

8 February 2023, 15:21

MP's to get a medal upon leaving parliament.
MP's to get a medal upon leaving parliament. Picture: Alamy

By Will Taylor

MPs who lose elections should be given bigger payoffs to help them land new jobs and a special medal in honour of their service, a parliamentary committee has suggested.

In an attempt to make the profession more attractive to prospective MP’s, a new committee report has been released suggesting MPs should be ceremoniously thanked for their public service.

A cross-party group of MPs pointed to the German system – where parliamentarians can receive a resettlement package of up to £162,000 on leaving office – as a potential model.

The administration committee said the House should also consider presenting departing MPs with a “medallion of service” at a special reception with family and friends.

In an attempt to make the profession more attractive to prospective MP’s, a new committee report has been released suggesting MPs should be ceremoniously thanked for their public service.

The report titled ‘Smoothing The Cliff Edge: Supporting MPs At Their Point of Departure From Elected Office’, says that certificates should also be given for skills MPs have gained whilst in parliament.

Drawing on the saying: ‘there is nothing more ex than an ex-MP’, the report illustrates the hardship of a losing MP returning to parliament and clearing out their offices while new MPs are celebrating entering office.

Former MP Nick de Bois said: “MPs are not actually very attractive to employ.” He said this was due to the 'political baggage' associated with being an MP.

To rectify this situation the report also suggests MPs should receive 18 months of job advice and support following their departure to boost future career prospects as well as a slackening up of the rules surrounding redundancy payments.

According to the report, MPs defeated at the 2019 general election experienced a loss-of-office payment of £5,250. This is equal to one month of their £84,144 salary.

But the committee, chaired by MP Sir Charles Walker, argues this is not enough as an MP in Germany can qualify for up to £162,360 worth of compensation.

MP Sir Charles Walker: Committee Chair
MP Sir Charles Walker: Committee Chairman. Picture: Alamy

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Bundestag parliamentary members with one year's membership can receive a "transitional emolument" to help with their next step into employment, with the pay-out equivalent to one month's salary - £9,020.

Meanwhile Australian MPs can expect on departure to receive either £31,455 or £62,909, depending on their length of service, while those exiting the Canadian House of Commons receive severance of close to £70,000.

Tory MP Sir Charles Walker, chairman of the Commons Administration Committee, said: "If the public wants the best individuals to represent them in the House of Commons, it is vital that MPs receive the support they need to do - and leave - their jobs well.”

Sir Charles, who is standing down as an MP himself at the next election, after 15 years representing Broxbourne, in Hertfordshire, said political parties also had a duty to ensure parliament "can attract and retain talented people of all different backgrounds from across the UK".

Sir Lindsey Hoyle and the Independent Parliamentary Standards Authority (IPSA) will receive the committee’s recommendations.

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