MPs are to get a pay rise of nearly three per cent to £86,584, the parliamentary finances watchdog announced on Thursday.

The £2,440 increase is the same as the average rise in pay for public sector employees last year, the Independent Parliamentary Standards Authority stressed.

In 2015 IPSA decided to adjust MPs’ pay at the same rate as changes in public sector earnings published by the Office of National Statistics.

It explained that this meant the annual adjustment to MPs’ basic pay for 2023-24 will be an increase of 2.9 per cent, bringing the overall salary from £84,144 to £86,584 from 1 April 2023.

Richard Lloyd, IPSA’s chair, said: “In confirming MPs pay for next year, we have once again considered very carefully the extremely difficult economic circumstances, the government’s evolving approach to public sector pay in the light of forecasted rates of inflation, and the principle that MPs’ pay should be reflective of their responsibility in our democracy.

“Our aim is to ensure that pay is fair for MPs, regardless of their financial circumstances, to support the most diverse of parliaments. Serving as an MP should not be the preserve of those wealthy enough to fund it themselves. It is important for our democracy that people from any background should see representing their communities in Parliament as a possibility.”