Impartial body to rule on MPs' pay

The Government was last night preparing to hand the highly sensitive issue of MPs' pay over to an independent body after Labour came out in favour of referring it to Lord Nolan's Committee on Standards in Public Life.

Opinion within the Government was swinging behind the idea of letting the Senior Salaries Review Board, which already fixes pay for judges, generals and senior civil servants, conduct a full review of MPs' pay. This could lift MPs - currently linked to grade 6 of the Civil Service - into a new league, at least pounds 10,000 higher than their current rate of pounds 34,000 a year plus allowances.

As the leaderships of all three main political parties were put on the defensive by the gathering momentum ofMPs campaigning for a big hike in parliamentary salaries, Ann Taylor, Shadow Leader of the House, backed the all-party demand by more than 300 MPs for the Nolan committee to determine their pay.

Tony Newton, Leader of the House, is already studying a series of options for the future fixing of MPs' pay. A review by the Nolan committee would require John Major to alter the committee's terms of reference. But the demands by MPs were fuelled by unconfirmed suggestions that pay rises for nurses, junior doctors and dentists, teachers and the armed forces could receive above-inflation rises of around 4 per cent.

Downing Street refused to commit Mr Major in advance of a report Mr Newton will make to the Cabinet. But the motion calling for a reference to Nolan is signed by influential members of the Tory backbench 1922 Committee, including its chairman, Sir Marcus Fox, and more than half of the Parliamentary Labour Party.

Although the Labour leadership backed the early day motion last night, senior party sources, with a lively sense that the issue could be one of the first to face the party in government if it wins the election, went out of their way to suggest that a Labour government would not see a big increase in MPs' pay as a priority.

Anxiety among leaders of the main parties that a big readjustment of MPs' pay could intensify the electorate's disenchantment with politicians was exposed by Paddy Ashdown, leader of the Liberal Democrats. He said of his own pounds 34,000 pay: "I have no difficulty with my salary as an MP.

"Our pay is adequate for the job we are required to do. And the only circumstance in which I would support a substantial rise was if that was a one-off compensation for MPs doing only one job."

Doug Hoyle, chairman of the Parliamentary Labour Party, however, declared that "a life of dedication should not be one of exploitation".

Mr Hoyle, MP for Warrington North, said: "There will never be a 'good' time, in the eyes of the public, to look at MPs' pay. Now that the demand is growing for MPs to be full-time, they have got to be adequately rewarded, if we are to attract people of the right calibre."

How they compare

High Court judge pounds 98,000

Brigadier pounds 50,000

Police Superintendent

pounds 38,000 to pounds 46,000

Bank manager

pounds 20,000 to pounds 25,000

School teacher pounds 20,000

Train driver pounds 18,000

Firefighter pounds 16,500

Prison officer pounds 15,600

Nurse pounds 15,000

Social worker pounds 13,500

Hairdresser pounds 7,500