MPs' pay to rise by 2.8% to £93,904 in April
The Independent Parliamentary Standards Authority (IPSA) said the decision was in line with wider Government pay recommendations for public sector workers.
Under the Parliamentary Standards Act, IPSA is required to review MPs' salaries within the first year of a new parliament, by early July.
The watchdog said it would hold a further consultation on the determination of MPs' pay for the rest of the current parliamentary term in the coming months.
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Telegraph
11 minutes ago
- Telegraph
Former polytechnics face job cuts over ‘unfair' staff pensions
Former polytechnic universities could be forced into redundancies due to the spiralling cost of staff pensions, vice chancellors have warned. Around 80 universities created after 1992 have to pay almost twice as much into workers' pensions as older institutions, costing some over £5m more each year. The Universities and Colleges Employers Association (UCEA) said the situation was driving redundancies across the sector, while leaders described it as 'unbelievably unfair' and 'a severe competitive disadvantage.' They are calling for the option to offer staff more affordable schemes, but the Government has not confirmed any changes. Staff at universities created before 1992, such as red bricks, are offered membership of the Universities Superannuation Scheme. It offers a hybrid defined benefit and defined contribution scheme, providing generous payouts for life. As a fully funded scheme, the employer contribution rate can be reduced if its investments perform well. After recording a healthy surplus in 2023, the rate was lowered from 21.6pc to 14.5pc in January last year – offering substantial savings for universities. However, this did not apply to around 80 former polytechnics that became universities after 1992, as they are required to offer membership of the Teachers' Pension Scheme to most staff, the Financial Times reported. The employer contribution rate for that scheme has soared over the past few years due to rising costs, culminating in a rise from 23.7pc to 28.7pc last April. The post-1992 universities paid around £700m into staff pensions last year, up from £300m in 2017-18, according to UCEA. The latest increase will force Manchester Metropolitan University to spend an extra £5.1m on pension contributions this year, while Andy Long, of Northumbria University, said moving all staff into the Universities Superannuation Scheme would save £11m annually. Graham Galbraith, vice chancellor of the University of Portsmouth, said it was an un-level playing field and 'unbelievably unfair' on pre-1992 universities. Chief executive, Raj Jethwa, said: 'The obligation to offer staff the Teachers' Pension Scheme, which has seen employer contributions virtually double over the last five years, is putting significant strain on institutional finances and driving redundancy exercises across the sector. 'Higher education institutions are determined to offer competitive, sustainable pensions as part of an attractive and affordable reward package, but they need the flexibility to offer better value alternative pension schemes. 'This will help alleviate the financial strains on employers and meet the needs of an increasingly diverse workforce.' However, University and College Union general secretary, Jo Grady, said it was an attempt to cut pensions. She said: 'It would be completely unacceptable for vice chancellors to attempt to slash staff pensions. The Government should make clear that the Teachers' Pension Scheme is an integral part of nationally agreed terms and conditions, block any attempts to leave it and match the support given to schools and colleges by funding the increase in employer contributions.' The increased employer contribution rate for the Teachers' Pension Scheme has already cost taxpayers an extra £1.9bn in additional pension contributions across the education sector. There are also fears that contributions could rise further if more private schools abandon the scheme, which they are not legally obliged to offer. Unions have previously warned that Labour's VAT raid on fees could push some private schools to withdraw in a bid to cut costs. A Department for Education spokesman said: 'While universities are independent from the Government and must make the necessary decisions to ensure their long-term sustainability, we are taking action to restore their status as engines of growth, opportunity and innovation through our Plan for Change. 'We appreciate the impact of the increased Teachers' Pension Scheme employer contribution rate on some higher education providers and are working closely with the sector.'
The Guardian
11 minutes ago
- The Guardian
Rail fares in England could rise by ‘outrageous' 5.5% next year
Train fares in England could rise by as much as 5.6% next year, as campaigners said passengers could be priced off the railway. Increases in train ticket prices are calculated using the inflation reading for July, which will be announced on Wednesday. The retail prices index – the measure of inflation used for the calculations – will hit 4.6% in July, according to consensus forecasts by City economists. Regulated fares, which account for about half of rail journeys, would rise by 5.6% in 2026 if the increase follows the same pattern as last year. Although the government has not yet confirmed how it will calculate fares for 2026, they last rose by 4.6% in March, which was one percentage point above the RPI reading from July 2024. Bruce Williamson, a spokesperson for the campaign group Railfuture, said such an increase would be 'outrageous'. 'What would be the justification for jacking up fares above inflation? There isn't any,' he said. 'It's ripping off the customer, driving people off the trains and on to our congested road network, which is in no one's interest.' The government is working on plans to bring rail services into public ownership, and Williamson said he would support a government freeze on fares. 'One would hope that there would be some efficiency savings and economies of scale that you get from having a more integrated railway,' he said. 'But of course, I strongly suspect that if there are any savings to be had, they'd be swallowed up by the Treasury and not passed back to the passengers, which I think is wrong.' Almost half of rail fares in England are directly set by Westminster. The devolved Scottish and Welsh governments usually cap fares at a similar level. Regulated fares include season tickets on most commuter journeys, off-peak returns on long-distance routes and flexible tickets for urban rail. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The prospect of higher travel costs comes amid a broader rise in the cost of living. Economists expect that the consumer price index, the headline measure for inflation, will be 3.7% in July, up from 3.6% in June. The government is expected to provide an update on changes to regulated fares later this year. A Department for Transport spokesperson said: 'The transport secretary has made clear her number one priority is getting the railways back to a place where people can rely on them. 'The government is putting passengers at the heart of its plans for public ownership and Great British Railways, delivering the services they deserve and driving growth. 'No decisions have been made on next year's rail fares but our aim is that prices balance affordability for both passengers and taxpayers.'
Scottish Sun
an hour ago
- Scottish Sun
Rail passengers face 5.5% fare hike in MONTHS as furious critics blast ‘outrageous rip off'
Critics fumed that expensive tickets were "putting people off" rail travel Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) RAIL passengers could be stopped in their tracks as ticket prices are set to increase by 5.5%. Transport groups have been left steaming by the potential increase in next year's rail fares, which they have slammed as "outrageous". Sign up for Scottish Sun newsletter Sign up 2 Transport groups have been left steaming by the potential increase in next year's rail fares Credit: Getty The July Retail Prices Index (RPI) figure, which is often used to determine the annual increase to rail travel, will be announced on Wednesday. RPI is a measure of inflation - published monthly - which is used to measure the change in the cost of retail goods and services. It was not used in 2022 or 2023, but it was in 2024, when the Department for Transport confirmed prices would go up by 4.6% - 1 percentage point higher than last July's RPI figure. The Government has not yet said how it will determine next year's rail fare rise. And banking group Investec has forecast this year's July RPI figure at 4.5%, meaning prices could jump by 5.5% in March 2026. Bruce Williamson, of pressure group Railfuture, fumed there was "no justification" for the monumental increase. He said: "What would be the justification for jacking up fares above inflation? There isn't any. "It's ripping off the customer, driving people off the trains and on to our congested road network, which is in no one's interest. "One would hope that there would be some efficiency savings and economies of scale that you get from having a more integrated railway. "But I strongly suspect that if there are any savings to be had, they'd be swallowed up by the Treasury and not passed back to passengers, which I think is wrong." Rachel Reeves confirms bus fare cap WILL rise to £3 after MPs slammed 'betrayal of working people' About 45% of fares on Britain's railways are regulated by either Westminster or the Scottish and Welsh Governments. This includes season tickets on most commuter journeys, some off-peak return tickets and flexible tickets for travel around major cities. Train operators set rises in unregulated fares, although these are likely to be very close to changes in regulated ticket prices. Ben Plowden, chief executive of Campaign for Better Transport, said that expensive fares were "putting people off" using trains. He added: 'Rising fares are not just burdening passengers, they are putting people off rail travel. 'Our survey found that 71% of people would be more likely to take the train if fares were cheaper. 'Public support for nationalisation plummets if fares continue to rise. "As the Government progresses plans for Great British Railways, it must take the opportunity to reform fares and make rail travel more affordable.' In March 2024, rail fares went up by 4.9%. How to save money on your train ticket HERE are some top tips to help you save cash on rail fares. Split tickets If you're taking a lengthy train journey then you could save hundreds of pounds by splitting your tickets. You won't need to change trains and National Rail lets you split your ticket as long as the train calls at the station you buy the tickets for. One site that works this out for you is Buy a season ticket Regular travellers should be able to save by purchasing either a seven day, monthly or annual season ticket, which will allow them to make the journey an unlimited number of times as long as it's valid. If you're making the same journey on three or more days a week, then a seven-day season ticket is likely to save you money, compared to buying a new one every day. You can check to see if a season ticket will save you money on your trip with National Rail's season ticket calculator. Consider Carnet tickets for London travel If you often travel back and forth to London on the train but you don't go regularly enough to buy season ticket, you might save with a Carnet ticket. They offer a 10% discount on plenty of routes. Tickets are valid for three months and you can buy books of peak (anytime) or off-peak tickets. Book at least 12 weeks in advance Network Rail releases its timetable 12 weeks in advance, so ticket firms usually make their fares available at this time. Just like plane tickets, the earlier you book the lower the price you'll pay for your seat. You can sign up to the Trainline's ticket alert service and it will tell you when cheap advance tickets go on sale for a particular journey. Also, the National Rail's future travel chart shows the furthest advance date that you can buy tickets. Save money with a Railcard If you're a regular traveller then a railcard should shave a third off the price of your ticket. Just make sure you'll make more in savings over a year than the price of the Railcard. See for more information. And in Rachel Reeves' Autumn Budget last October, it was confirmed that travellers would be forced to pay up to 4.6% more for trains. These changes to fares came into effect on March 2 this year. Following the increase, a yearly ticket from Rugby to London rose by £496.62 to £11,292.62. And the commute from Milton Keynes to London leapt by £357.33 to £8,125.33. The budget document said it would be 'the lowest absolute increase in three years". The Department for Transport confirmed "no decision" had been made on next year's fares. A spokesman said: "The Transport Secretary has made clear her number one priority is getting the railways back to a place where people can rely on them. "No decisions have been made on next year's rail fares but our aim is that prices balance affordability for both passengers and taxpayers."
