What happens when an MP has lost
Discussion
As above, if they've actually bought a second home then they're a bit shafted as they now have (presumably) two mortgages and no income, although I do think they get a "redundancy" pay out of some form.
The below book is well worth a read as it explains everything wrong with the political system, part of the problem is that really, it can be financially ruinous to even try and become an MP, never mind lose your seat...
https://www.amazon.co.uk/Why-We-Get-Wrong-Politici...
The below book is well worth a read as it explains everything wrong with the political system, part of the problem is that really, it can be financially ruinous to even try and become an MP, never mind lose your seat...
https://www.amazon.co.uk/Why-We-Get-Wrong-Politici...
They get five days to pack up their office in parliament. They get a winding up payment of two months salary which is about 9k, a loss of office payment which is twice the statutory redundancy due. They don’t get the generous resettlement grant they used to though that has been axed. They also get a budget to wind up their constituency office and a membership to the association of former members of Parliament support group.
craigjm said:
They get five days to pack up their office in parliament. They get a winding up payment of two months salary which is about 9k, a loss of office payment which is twice the statutory redundancy due. They don’t get the generous resettlement grant they used to though that has been axed. They also get a budget to wind up their constituency office and a membership to the association of former members of Parliament support group.
I read that they only get the Loss of Office payment if they stood for reelection in the same seat as they previously held.So a lot of the muppets that the Lib Dems took on and then stood in different seats, for example Chuka who was MP in Streatham but in this election he stood in Cities of London and Westminster, don't get it.
Which is excellent.
kev1974 said:
craigjm said:
They get five days to pack up their office in parliament. They get a winding up payment of two months salary which is about 9k, a loss of office payment which is twice the statutory redundancy due. They don’t get the generous resettlement grant they used to though that has been axed. They also get a budget to wind up their constituency office and a membership to the association of former members of Parliament support group.
I read that they only get the Loss of Office payment if they stood for reelection in the same seat as they previously held.So a lot of the muppets that the Lib Dems took on and then stood in different seats, for example Chuka who was MP in Streatham but in this election he stood in Cities of London and Westminster, don't get it.
Which is excellent.
james_TW said:
I've wondered this too. But in the case of Jo Swinson, for example, is she also employed by the LibDems?
No. It’s a redundancy situation and as an MP she isn’t employed by the Liberal Democrat’s. Her role as an MP is no longer required which is why they get the financial package I outlined above. She can still be a member of the Liberal Democrat’s of course. Dr Jekyll said:
How often has a party leader lost their seat in a GE? I think there was another Liberal back in the 30s, but I can't recall any others.
Balfour 1905Asquith 1918
Henderson 1931
From the main parties
Leaders of smaller parties have lost their parliamentary seats 18 times since the turn of the 20th century. The Liberal Party lost seven leaders between 1918 and 1979. The most recent example of the phenomenon came in 2010, when the leader of the Democratic Unionist Party (DUP), Peter Robinson, failed to win re-election in Belfast East.
craigjm said:
No. It’s a redundancy situation and as an MP she isn’t employed by the Liberal Democrat’s. Her role as an MP is no longer required which is why they get the financial package I outlined above. She can still be a member of the Liberal Democrat’s of course.
It's bulls
t really. She hasn't been made redundant; the position of MP for East Dunbartonshire still exists. She's been sacked. For gross incompetence it would seem. She shouldn't be getting any pay out at all.But MPs chop and change their status (and that of their constituency office) to whatever is most tax efficient for any given scenario...
I didn't realise quite how small the "parachute" was, all things considered.
When you think about lots of senior positions in industry which have three or six month notice periods and that quite often redundancy payouts are on the generous side (I know some people who, admittedly after many years of service, received 6-12 months' (hefty) salary as redundancy). From the sounds of it an MP who started in 2010 will be getting 2 months' pay + £9K in redundancy. Not to be sniffed at, but it's certainly not going to let them retire. Oh, wait, don't they get a nice pension? Actually just looked, it's decent but not massively better than the public sector in general (final salary and accrues at 1/40th per year of service)
When you think about lots of senior positions in industry which have three or six month notice periods and that quite often redundancy payouts are on the generous side (I know some people who, admittedly after many years of service, received 6-12 months' (hefty) salary as redundancy). From the sounds of it an MP who started in 2010 will be getting 2 months' pay + £9K in redundancy. Not to be sniffed at, but it's certainly not going to let them retire. Oh, wait, don't they get a nice pension? Actually just looked, it's decent but not massively better than the public sector in general (final salary and accrues at 1/40th per year of service)
Flooble said:
I didn't realise quite how small the "parachute" was, all things considered.
When you think about lots of senior positions in industry which have three or six month notice periods and that quite often redundancy payouts are on the generous side (I know some people who, admittedly after many years of service, received 6-12 months' (hefty) salary as redundancy). From the sounds of it an MP who started in 2010 will be getting 2 months' pay + £9K in redundancy. Not to be sniffed at, but it's certainly not going to let them retire. Oh, wait, don't they get a nice pension? Actually just looked, it's decent but not massively better than the public sector in general (final salary and accrues at 1/40th per year of service)
So after 9 years work they get a pension which is almost a quarter of their salary, index linked. Try buying that from a pension fund, annual income of about 18,000. I think you would need nearly 600k When you think about lots of senior positions in industry which have three or six month notice periods and that quite often redundancy payouts are on the generous side (I know some people who, admittedly after many years of service, received 6-12 months' (hefty) salary as redundancy). From the sounds of it an MP who started in 2010 will be getting 2 months' pay + £9K in redundancy. Not to be sniffed at, but it's certainly not going to let them retire. Oh, wait, don't they get a nice pension? Actually just looked, it's decent but not massively better than the public sector in general (final salary and accrues at 1/40th per year of service)
Plus given they set the law for statutory redundancy, then they really should live with the rules.
Gargamel said:
So after 9 years work they get a pension which is almost a quarter of their salary, index linked. Try buying that from a pension fund, annual income of about 18,000. I think you would need nearly 600k
Plus given they set the law for statutory redundancy, then they really should live with the rules.
Probably closer to £500K but fair point, however, public sector in general is generous - according to the website I found it accrues at 2.32% per year, for a smaller employee contribution (7.35% if you are in the MP salary bracket) than the MP 1/40 scheme (13%). Plus given they set the law for statutory redundancy, then they really should live with the rules.
So 9 years in general public sector would net you 21%, or about £15K (bit less as public sector scheme is "career average" - awesome if you start on a huge salary like an MP, not so good if you have to work your way up)
craigjm said:
They get five days to pack up their office in parliament. They get a winding up payment of two months salary which is about 9k, a loss of office payment which is twice the statutory redundancy due. They don’t get the generous resettlement grant they used to though that has been axed. They also get a budget to wind up their constituency office and a membership to the association of former members of Parliament support group.
What a cracking reply.Informative - thanks
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