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Written Answer (Correction)

Volume 476: debated on Monday 2 June 2008

It has been brought to my attention that the reply I gave the hon. Member for Fareham (Mark Hoban), 14 May 2008, Official Report, columns 1586W was incorrect.

The correct answer should have been:

The pension contribution of hon. Members increased from 9 per cent. to 10 per cent. of salary in April 2004 for those opting for one fortieth pension accrual. It remained at 6 per cent. of salary for one fiftieth accrual. These pension contribution rates also applied to ministerial salaries.

As for many public sector pensions, the increases applied each April to pensions in payment under the parliamentary contributory pension fund, in excess of the guaranteed minimum pension, were linked to the increase in the retail prices index as at the previous September. These increases applied to pensions paid to former Cabinet Ministers, Ministers of State and Parliamentary Under-Secretaries.

The percentage increases for the last ten years were as follows:

Date

Increase

%

April 1999

3.2

April 2000

1.1

April 2001

3.3

April 2002

1.7

April 2003

1.7

April 2004

2.8

April 2005

3.1

April 2006

2.7

April 2007

3.6

April 2008

3.9

The percentage increases to ministerial salaries for the last five years are given below:

Date

Increase

%

April 1999

3.2

April 2000

1.1

April 2001

3.3

April 2002

1.7

April 2003

1.7

April 2004

2.8

April 2005

3.1

April 2006

2.7

April 2007

3.6

April 2008

3.9

There was no difference in the percentage salary increases between Cabinet Ministers, Ministers of State or Parliamentary Under-Secretaries.

Further information on current and historical rates of ministerial salaries is available in the Libraries of the House.

All Cabinet Ministers, Ministers of State and Parliamentary Under-Secretaries are entitled to claim the same parliamentary allowances as any other hon. Members. Previously, Ministers were paid the London supplement as well as claiming additional costs allowance (ACA) for their constituency home unless they were provided with an official residence. This arrangement ceased on 1 April 2005 and now Ministers can opt to receive London supplement instead of eligibility for ACA.