When MPs are appointed as government ministers they get an extra salary (£78,356 if they go into the Cabinet and £40,646 if just a minister) and pension in addition to the MPs salary. When they are subsequently fired in a reshuffle, or forced to leave under a cloud or just simply resign, they get a severance payment equivalent to one quarter of their final salary, provided they do not take another ministerial appointment within three months.
Nearly 100 ex-ministers have benefited from these golden handouts. High profile beneficiaries include Peter Mandelson (twice), Charles Clarke, Alan Milburn, David Blunkett, Peter Hain, Margaret Beckett, Estelle Morris (twice), Lord Sainsbury, and the recently resigned James Purnell, Hazel Blears and Caroline Flint.
Since Labour came to power this has amounted to nearly £1.4million. It is generally outrageous that some of these ministers have therefore been rewarded for failure!
These figures have been uncovered by the Liberal Democrats, well done to Steve Webb MP for uncovering these figures.
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2 comments:
Seems pretty expensive
I will check, but I assume these payouts to be tax tree, under Chapter 8 exemptions of the Income Tax Act. More reason to get this chapter repealed
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