MPs' pay is to be frozen at £65,738 for 2012/13, it has been announced. The Independent Parliamentary Standards Authority (Ipsa) also recommended a 1.85% increase in MPs' pension contributions. It went on to say that it will consult on a 1% pay rise for the years 2013/14 and 2014/15. Ipsa chairman Sir Ian Kennedy said: "We have been given responsibility for reviewing and, as necessary, reforming MPs' pay and pensions. We are exploring the broader question of how to reform MPs' remuneration to make it fair to MPs and taxpayers alike and, crucially, how to make it sustainable. "In the meantime, we must be mindful of the conditions in the rest of the public sector where pay has remained static and where settlements will see most people pay more into their pensions too. While we address the longer-term changes which are needed, I believe it is right that we act in the interim so that MPs' circumstances more closely reflect those experienced by others." Ipsa's decision means that MPs' pay will be frozen for a second year in succession. Last year, the Commons agreed to forgo a 1% hike recommended by the Senior Salaries Review Board after Prime Minister David Cameron said they should turn it down. The power to set MPs' pay was handed over to Ipsa at the end of last year, and this is the first time it has passed judgment on what rise is appropriate. Under the new rules, Ipsa's decision is final and does not have to be approved by a vote in the Commons. Announcing its decision, Ipsa said it was "appropriate" for MPs to share the burden at a time when public sector workers were experiencing pay restraint and being asked to contribute more to their pensions. The watchdog said its decision also recognised the vote in the House of Commons last year calling on Ipsa to increase pension contributions in line with the public sector. | 
