£2k pay rise for MLAs is 'grotesque', says first minister

A pay rise of more than £2,000 for Northern Ireland Assembly members (MLAs) is "grotesque", the first minister has said.

The proposals planned for next year would bring MLAs annual salary to £69,216.

The increase will take effect from the first sitting day of the new assembly mandate next May, under draft proposals by Stormont's Independent Remuneration Board.

Speaking to the media at Stormont, she said: "This issue of wages is not in my agenda. It's not something we've pushed for."

"It's not something we've asked for and actually I think it looks quite grotesque in the climate that we're in."

The proposals follow MLAs being awarded an almost 27% uplift in their annual wages in April - a rise of more than £14,000.

A spokesman for the Democratic Unionist Party (DUP) said the party has "no input" in setting MLA salaries.

"At the present time we are focused on the need for a fair and stable funding settlement for Northern Ireland so that hardworking nurses, doctors and other frontline workers are properly rewarded for their work," they added.

Alliance MLA Eóin Tennyson told the media on Thursday that the pay rise "smacks of being completely out of touch with where the public are".

"We are more than adequately paid," Tennyson said, adding that he sees no "coherent" argument for the rise.

The leader of the Ulster Unionist Party, Jon Burrows, said "our nurses need their pay rise before our politicians".

He added that, while he respects the independence of the remuneration board, he feels there is a sense of "unease" around MLAs' value for money.

"We haven't set a multi-year budget, we haven't got a budget of any sort, and people think that Stormont is under-performing."

Social Democratic and Labour Party (SDLP) leader Claire Hanna said a pay rise is "going to be impossible for people to stomach".

"Those who are doing their job and trying to do their job should be properly remunerated for it but unfortunately some are prevented from doing that by the dysfunction".

Alan Lowry, chair of the board, said the 27% rise was a "corrective measure" after years of no substantial rises - but future increases would be expected to "reflect inflationary and other pay trends".

"MLAs carry out a wide range of important duties, from representing constituents and scrutinising legislation to holding ministers and departments to account," he said.

He said it was "right that their remuneration recognises the complexity and importance of those responsibilities, while ensuring that financial considerations do not discourage people from seeking elected office".

He added: "As we look ahead to the assembly election next year and the start of a new mandate, it is important that we put in place a structured and transparent mechanism that links MLA pay to changes in earnings in Northern Ireland.

"This approach ensures that pay remains aligned with wider developments in society, while providing certainty and maintaining public confidence in the process."

Under the proposals, while the basic MLA salary will increase in line with earnings growth, payments for different office holders will remain unchanged throughout the 2027-32 mandate.

Lowry said: "In making this draft determination, we are increasing the transparency of our decision-making and making it easier for the public to understand how remuneration is structured.

"The board will now consult with our statutory consultees - MLAs, the Assembly Commission and the Assembly Members' Pension Trustees, over a four-week period.

"It is also inviting views from members of the public during this same timeframe.

"After that, we will take some time to reflect on the responses received and present a final determination to the Assembly Commission for publication and implementation."

The proposals come as Stormont ministers face pressure from trade unions over public sector pay, with some health workers taking part in strike action in recent months.

The health minister at the time said he was unable to implement pay awards in the absence of an agreed Stormont budget.

Northern Ireland's four-party devolved government has yet to set a budget five months into the financial year.

Stormont departments are facing a shortfall of up to £1.6bn, according to a spending watchdog.

With no agreed plan, public services have been operating under contingency arrangements.

The parties have been holding talks with the UK government and Treasury in recent months in a bid secure additional funding.

Maria Morgan NIPSA Deputy General Secretary said it was surprising in the context of the rise of the 27% and the £14,000.

"I think it will go down very badly with our members," she said.

"I think it will go down very badly with the public given we've just been announced significant cuts in the health service, significant cuts in education...right across the public sector our members are waiting for their pay."

Members of the Scottish Parliament receive £77,711 while members of the Welsh Parliament earn £79,817 a year.

At Westminster, MPs earn £98,599 a year while members of the Dáil (lower house of the Irish parliament) earn €119,467 (£102,334).

The three-member panel was set up with the sole remit of setting MLAs' pay and pension entitlements.

It was established under legislation passed last year.

The body replaced the Independent Financial Review Panel (IFRP), which had made decisions on both the wages and expenses provisions for MLAs.

However the tenures of its three members ended in 2016 and they were never replaced.

MLAs at the time took issue with some of the rules the panel imposed, including limits on salaries for constituency office staff and other matters such as office signage.

The bill which established the Independent Remuneration Board was backed by the Assembly Commission - a body which handles the running of Parliament Buildings and involves representatives of Stormont's main parties.

But some MLAs criticised the bill, arguing it would lead to assembly members receiving significant pay rises.