A 10pc pay rise for MPs, but less generous perks Tonight, Charles Walker, the vice-chairman of the Conservative 1922 committee, said: "The Prime Minister, Deputy Prime Minister and Leader of the Opposition should be paid the same as a backbencher so they can't play politics with back-bench remuneration. For too long they have made political capital out of backbenchers. Sir Ian Kennedy, the chief executive of Ipsa, said last week that pay should reflect the "crucial role" of MPs in a democracy and that politics should not be restricted to those of "independent means." He is expected to propose the 10 per cent pay rise from the current £66,396 a year, accompanied by a "dramatic" cut in the final salary pension offered to MPs, one of the most generous available. A range of expenses, including the dinner allowance and lump sum payment to MPs leaving Parliament will also be scrapped or cut. Pay will then rise in line with average earnings to avoid an annual showdown. Sources said that the overall impact would be "cost neutral." Ipsa was set up in the wake of the expenses scandal exposed by The Daily Telegraph and is intended to remove decisions about their own pay and perks from MPs. But the three main political party leaders believe that offering an inflation-busting rise at a time of public sector pay restraint will anger voters. David Cameron has said the overall cost of politics should not rise, and the proposal would appear to meet this test. Last night, Conservative sources indicated that the Prime Minister still thought the pay rise was "unacceptable." Ipsa will insist that its recommendations are a "consultation." It will set out plans for a review after the next election - but it was not clear whether that would be before or after a pay rise takes effect.