Why do relatives receive higher bonuses?

There are convincing arguments for and against the ban on family members. Many spouses do an extraordinary job. But even their supporters are often surprised to hear that almost a third of MPs put a family member on the Commons payroll. As Sir Christopher Kelly said today, it is out of step with most organisations in Britain and parliaments across the world. The US Congress outlawed hiring family members way back in the 1960s.

One other statistic that really stands out of the Kelly report is on pay and bonuses. Many spouses who work in the Commons no doubt deserve a bonus as much as any other hard working public servant. But should they they be receiving more than other staff? Take a look at this paragraph:

Family members are on average paid slightly more than other staff and receive higher bonuses (averaging 1,830 in 2008-09 as opposed to £1,400 for other staff who received bonuses). It is possible that this is because many of them have been employed longer than average, are appointed to more senior posts, or work longer hours.

Kelly does a good job at explaining why there could be a bonus gap of close to 30 per cent. But, even if spouses do carry on working in the Commons, it would seem only fair to end to a situation where MPs are determining the performance related pay of their loved ones.

Westminster blog

on the UK political scene

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The authors

Jim Pickard joined the lobby team in January 2008. He has been at the Financial Times since 1999 as a regional correspondent, assistant UK news editor and property correspondent.

Kiran Stacey is an FT political correspondent, having joined the lobby in 2011. He started at the FT as a graduate trainee in 2008, working on desks including UK companies and US equity markets before taking over the FT's Energy Source blog.

Contributors

Elizabeth Rigby, the FT's chief political correspondent, joined the lobby team in September 2010. Elizabeth has worked at the FT for more than a decade and was most recently its consumer industries editor.

Helen Warrell is the FT's UK reporter, covering home affairs, crime and policing. She joined the FT in 2008 and has spent time as a reporter in the Brussels bureau and more recently, editing the paper's Asia coverage on the world news desk.

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