Government accused of leaning on MPs over pensions increase

Labour Party whips are pressurising members of a parliamentary committee to force through plans to increase MPs' pensions by 20 per cent, it was claimed last night.

Though MPs were promised a free vote on the issue on Tuesday, some members of the 16-strong parliamentary committee responsible for deciding the issue have been told to push the increase through, The Sunday Telegraph claims in a report today.

The move comes despite fears that a decision to award themselves a pension increase – 40 per cent of which will be funded by the taxpayer – will anger members of the public who have seen the value of their pensions diminish.

One is reported to have said: "Some on the committee – such as me – don't agree with the proposals but have been told to vote them through. We realise voting in favour is not going to be popular with constituents but the screws are being turned by the party bullyboys."

MPs were officially told that they would be allowed a free vote and claims by committee members that they are being leant on by whips to support the move will embarrass the Government.

Iain Duncan Smith, the Tory leader, who will forego the rise in his own pension, was swift to capitalise on the issue, stressing that his MPs would vote as they wished without internal party pressure. "It is a House of Commons matter. The whips should not get involved," he told the paper.

Under the generous proposals, put forward last summer, MPs would be able to retire on a full pension of £36,745 after 27 years at Westminster rather than the present 33 years. They would also receive £14,000 rather than £11,000 if they retired after just 10 years.

Around 40 per cent of the increase would be funded by the taxpayer, with MPs picking up the rest.

The potential rise comes despite a growing trend by companies to ditch final-salary pension schemes in favour of money-purchase schemes where the payout depends on the stockmarket, with more than 6,700 closing in the last year.

Calls for an increase in pensions were put forward last summer by MPs following complaints that the average Westminster career was shorter than it used to be.

Gisela Stuart, the Labour MP for Birmingham Edgbaston, said: "It is not a job like any other: if you are in your mid-40s you can suddenly lose your career."

The Sunday Telegraph surveyed 10 members of the committee. Five said they would support the proposals, three were undecided and only one – Steve Webb, a Liberal Democrat, was opposed to them. Mr Webb said: "MPs should not be pushing this through when so many people are struggling with their pensions. It would be wrong."

Angela Smith, a government whip on the committee, denied Labour whips were putting pressure on anyone, but said she would support the move.

"I am voting for the proposals. They are a good idea because MPs will bear most of the increase," she said.

Other Labour MPs insisted that although they were against the increase, they had been ordered to vote it through. One said: "The committee would prefer if the vote went to the whole of the House. Instead, the whips want us to push it through on Tuesday."