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Labour hands staff 10.5% cost-of-living pay hike as donations surge

Labour hands staff 10.5% cost-of-living pay hike as donations surge and taxpayers provide an extra £700,000 in ‘short money’

  • Labour is handing staff a 10.5 per cent pay rise to keep up with surging inflation
  • Party said that it has seen donations grow and is on a sound financial footing 
  • Opposition parties are set to see their ‘short money’ taxpayer funding soar

Labour staff are set for a 10.5 per cent cost-of-living pay hike this year as Keir Starmer’s war chest surges.

The party is handing workers the huge bump after seeing a dramatic rise in donations – while taxpayer funding is due to soar by £700,000.

The package includes a commitment to another rise of at least 5 per cent next year, as well as keeping a generous defined benefit pension scheme.

A Labour spokeswoman said the party had ‘returned to a strong financial footing, with growing commercial income and donations’.

The news came as a poll for MailOnline revealed that just a quarter of Brits are expecting a pay rise in line with prices. 

Labour staff are set for a 10.5 per cent cost-of-living pay hike this year as Keir Starmer’s (pictured in Belfast today) war chest surges

The ‘short money’ allocation of taxpayer money for Opposition parties is due to be uprated by the headline CPI rate for December – likely to be at least 10 per cent

Figures released last month Labour received £4.7million in donations in Q3, up from £3.8million in Q2, according to the Electoral Commission.

That included £1.6million from trade unions, several of whom have undertaken strike action in recent months and plan more in the run up to Christmas. 

But contrast the Conservatives suffered a massive slump in donations as the party was wracked by leadership chaos and economic strife. 

The Tories reported receiving £2.9million between July and September, down from £5.3million in the second quarter of the year

Meanwhile, MailOnline revealed last week that Labour is scooping an inflation windfall from struggling taxpayers.

While Britons face a cost of living crisis, the party’s ‘short money’ allocation from the public purse is due to be uprated by the headline CPI rate this spring – currently over 10 per cent.

Around £90,000 extra will be available for running Sir Keir’s office, while overall Labour’s state funding could reach nearly £7.7million in 2023-24. 

The SNP is also on track to benefit to the tune of £120,000, while the Liberal Democrats could get roughly £95,000 extra.

Short money can be claimed by all Opposition parties that secure MPs at an election, as long as they take the oath of allegiance to the monarch. It is meant to offset the governing party having access to Whitehall resources.

They can deploy the money on salaries for staff, developing policies and other Parliamentary activities – although not political campaigning.

Independent auditors must approve money claimed from the allocation, and a transparency breakdown of how much has been spent is published after each year.  

In the current financial year parties are entitled to £19,401 for every MP, as well as travel costs.

There is an extra provision for the Leader of the Opposition’s office, which is up to £903,907 in 2022-23.

The SNP was allocated nearly £1.2million this year, and the Lib Dems just over £950,000. 

However, the entitlements are uprated by inflation every year – with the figure used the CPI rate from the previous December. That is due to be announced later this month, but is unlikely to be dramatically lower than the 10.7 per cent recorded for November.

Figures released last month showed the Conservatives suffered a massive slump in donations as the party was wracked by leadership chaos and economic strife 

Labour sources stressed that the uprating mechanism and level of short money was decided by Parliament.

‘As will be our approach in government, we treat every penny of taxpayer money with the respect it deserves,’ one source said. 

A Labour official told Playbook of the pay rise for staff: ‘Under Keir’s leadership the party has returned to a strong financial footing, with growing commercial income and donations. 

‘It’s good news that this has enabled us to provide a pay increase for employees to help them get through the cost of living crisis whilst also securing the future of our pension provision. 

‘We’re pleased that we did it through agreement with staff trade unions. Labour is a changed party, serious (about) getting into government.’ 

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