Would paying more attract a better calibre of MP? The evidence suggests not

Higher pay would tempt to parliament the low performers of high paying professions, thus pushing out high performers of lower paying professions

 

MPs caught plotting ‘under the radar’ lobbying (on behalf of clients) for cash, are quick to use their mischiefs as an excuse to lobby (on behalf of themselves) for even more cash.

They claim if MPs were paid more we would get better quality MPs, asserting that:

  • Some high powered people don’t apply to be MPs because they don’t want to take the pay cut.
  • If they didn’t have to take the pay cut, they could become high powered MPs.

Let’s put aside the copious evidence that the existing rewards of being an MP are sufficient to pull in a plentiful number of people who consider themselves ‘high powered’: Oxbridge graduates are just one per cent of the population but made up 27 per cent of all MPs, and over one in three of Tory MPs, in the 2010-15 parliament.

oxbridgegraph

And let’s overlook that there are many high powered MPs in parliament who do the job for reasons of public service, regardless of the pay. Just as there are many high powered people with vocations to work in other relatively low paying professions.

Instead focus on that group of people who refuse to be an MP unless the money can match that of their alternative employment.

For those who measure a person’s merit by their pay:

1) merit is measured by how much they earn.
2) the amount earned is only a measure of their merit within their profession, and not across professions.

For example, if a banker earns more than a doctor that is not because the banker is ‘better’. It is because the banker is in a higher paid profession than the doctor. Just as the thousandth ranked UK banker earned more than a million euros, while the thousandth ranked tennis player earned just a few thousand.

Therefore using money as the measure, to get the ‘best’ we would want people paid in the top quarter (above the 75th percentile) of earnings for their profession.

A look at wage figures for different professions from the Office for National Statistics (ONS) illustrates that by paying MPs more we would actually get a worse quality of MPs. Higher pay would tempt to parliament the low performers of high paying professions (bankers; lawyers; lobbyists) thus pushing out high performers of lower paying professions (teachers; IT managers; nurses…).

The graphs below show the range of salaries for different professions. First we explain how the graph works:

graphexplain

  • 25 per cent earn less than the first blue block, marked Q2 (the second quartile)
  • 50 per cent earn less than the second blue block, the median.
  • 25 per cent earn more than the third blue block, marked Q3 (the third quartile)

For a selection of professions, salary ranges (from the Office for National Statistics, table 14.7a) are:

employeequintile

Evident from this is the fact that the current MP’s salary, £66k, is already above the 75th percentile for postmen, nurses, teachers, IT managers and train drivers. So an MP’s pay is already enough to get the top 25 per cent talent from those professions.

earnings

On the other hand, £66k is well below the pay of a 75th percentile lawyer, doctor, or company director.

lawyerpay

Even the MPs’ 10 per cent payrise in May 2015, to £74k, still wouldn’t be enough to bring in the best money driven candidates from these high pay professions.

To attract money-driven top 25 per cent (top quartile) lawyers, doctors, and company directors, the salary of an MP would need to rise to £100k. This is clearly ludicrous:

a) Based on market driven supply & demand, there has never been a shortage of people wanting to be an MP. Whether they are any good is a matter of opinion.
b) The statistics show the vast majority are sheep, voting according to the party line.

voteagainstownparty

One possible solution:

1) Parliamentary candidates state in their election campaign literature how much money they need for it to be worth their while representing their constituents, signed off by the party leader.

2) The party leader is given a salary budget after the General Election of £67k times the number of MPs he gets. (ONS figures for 2013 show £67k p.a. is more than 94 per cent of income tax paying Britons’ pre-tax incomes). And it is left to the party leader to share this out.All done in full public view. Now that would be fun to watch!

pretaxincome

34 Responses to “Would paying more attract a better calibre of MP? The evidence suggests not”

  1. Bollinger Bolshevik

    Bearing in mind how much of the decison making has been passed to Brussels, far from an increase we should be looking at a pro-rata reduction in salaries.

  2. Mike Stallard

    You are making a false assumption.
    MPs are there to represent us. They are not the clever dicks who spend their lives behaving in a totally un-socialist way greedily getting more than everyone else (inequality is bad, surely). We want ordinary people to represent us. People who have had to struggle a bit to build up their family life together. People who know what it is like to get up at 6 a.m. because you have to, not because you think it is rather amusing. People who never eat out and who find paying off the bills a constant trouble.
    Being an MP should be an honour. Expenses – definitely. But that’s it.
    We need people who know what it is to earn a living doing a useful job. And so why should parliament sit all those useless hours? Why not less? If an MP behaves badly, we should be able to recall her/him too.
    The trouble at the moment is that the Party System controls all the MPs and they cease to work for us, but for the Party. And that means they get more and more out of touch with the electors.
    You are proposing mercenaries: we want people who are sincerely representing our interests.

  3. Frann Leach

    They’re supposed to serve us, and servants generally don’t earn that much

  4. Leon Wolfeson

    Yes, they are leeches. That’s what the second jobs are for. Moreover, worse, they promote capitalist behavior, further distorting the free market, and even set a lot of that distortion in law.

    And yes, the people you hate for working, as you’ve never had to.
    You don’t want them to be thought of – you want the MP’s to come from the rich, as you demand a right to recall any MP showing leftist thought, and as you rail against Parties – which every democracy has.

    You want people representing your rich.
    When the problem is FPTP.

  5. Guest

    Ah yes, gotta exclude the peons from being able to afford to be MP’s after all, on the back of your myths and fear of trade.

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