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THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT

NFIDENTIAL

CABINET

LIMITED CIRCULATION ANNEX

OC(89) 36th Conclusions, Minute 1

1

Thursday 30 November 1989 at 10.30 am

that the overal

overall salaries must be

10

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THE LORD PRESIDENT OF THE COUNCIL said that following discussions with the Chancellor of the Exchequer and the Lord Privy Seal, he had put proposals to the Prime Minister for increases in Ministerial salaries to accompany the increase in Parliamentary alaries to take effect from 1 January 1990. Under the arrangements for automatic increases in Parliamentary salaries, the Parliamentary

iamentary element of Commons Ministers' salaries would base by 10.76%, that is £1953. He believed rease in the package for Ministerial lower percentage than that, especially in the light of the cent industrial action in the Ambulance Service. He proposed therefore that Ministers should receive the same overall cash increase as backbench Members of Parliament, namely £2594, this would represent a increase in the Parliamentar as a whole, the average increase

Cabinet Ministers in the Commons increase of 4.9% (including the ement). For Commons Ministers

ould be 6.2%.

Continuing, the LORD PRESIDENT THE COUNCIL said that the Government were experiencing siderable difficulty in recruiting and retaining junior Ministers in the House of Lords. On taking office, Lords Ministers ost their eligibility for the attendance allowance they could claim as backbench peers. Unlike their Commons counterparts they received no Additional Cost Allowance. This issue had been looked at a number of times before, and he proposed to look again pe arguments for giving Lords Ministers some form of additional remuneration. In the meantime, he proposed that in addition to the general cash increase of

of £2594, all Lords Ministers

receive an additional £1000, making £3594 in total. There

There would have to be equivalent cash additions for other paid office-ders in the Lords, which would mean an overall increase in the Lords Pay Bill of 10.8%. However, he believed that this could be presented as a sensible restructuring. The overall prese in the Pay Bill for Lords and Commons Ministers combined would on this basis be 7%. He hoped to be able to announce proposals in a written Parliamentary reply the following

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