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Baker Review

Volume 470: debated on Wednesday 23 January 2008

I announced in my written ministerial statement on Wednesday 16 January 2008, Official Report, column 32WS, volume 470, that the Prime Minister had asked Sir John Baker CBE to undertake a review of the mechanism for determining the pay and pensions for Members of Parliament which does not involve MPs voting on their own pay and pensions; and to report to him by May 2008. The terms of reference are as follows:

Review of the mechanism for determining the pay and pensions for Members of Parliament.

to examine options and make recommendations for a mechanism for independently determining the pay and pensions of Members of Parliament which does not involve MPs voting on their own pay; the appropriate comparator; and the frequency with which reviews of the use of the comparator take place;

to ensure that the independent mechanism takes account of the Government's policy on public sector pay and its target for inflation and;

to have regard to the need for any independent mechanism to maintain the support and trust of the public and Members of Parliament.

The review should seek to:

examine comparable international mechanisms and the resulting experience;

address the constitutional framework alongside legal and legislative considerations;

consider the range of evidence that should be considered by the recommended independent mechanism in determining an appropriate comparator;

consider the membership and remit of any independent body that may be part of the pay setting process;

give due consideration to consistency with other public service wage setting mechanisms and wage settlements across the public service and;

outline a recommended timetable for transition to any new system.