The controversial 26 per cent salary increase voted for by MPs in July 1996 re-ignited the vexed issue of politicians and pay. This paper firstly develops a framework to review the history of MPs' pay. Secondly, an empirical examination is undertaken with regard to its value relative to prices and earnings, the ruling political party and the overall period disaggregated by decade. This suggests that MPs have been more successful insulating themselves against the ravages of inflation than changes in earnings and that the party in power appears to be influential.
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