BALLOT BOX BLUES
MPs laid off by the electorate – What happens next?
As many wake up to the news of Labour’s landslide general election victory, whatever your political allegiance, you may wonder what happens to the 11 Cabinet Ministers and many hundreds of other Members of the UK Parliament (MPs) who lost their job in an instance… are they “dismissed” by the electorate; do they get a redundancy payment?!
Sitting MPs stop being MPs once the general election campaign formally begins and they are simply, “candidates”, like anybody else standing. The winning candidate will become an MP immediately at the point the presiding officer declares them the winner.
MPs are not employees. They are Office Holders, and are engaged in a particularly unique way. As such, they do not have traditional employment rights – including the right not to be dismissed by their constituents!
The lack of a recognisable employment contract has caused significant issues in the past when MPs conduct has been questioned, leading some to argue that there should be a more formalised HR relationship within the entirety of the parliamentary system.
“While the employment status of MPs is inherently precarious due to the electoral process, mechanisms like the ‘redundancy’ and Loss of Office payment, and Winding Up Allowance provide financial support to ease their transition out of parliamentary roles.”
However, when it comes to election night… every MP knows they might be out of a job in the morning (at midnight if they represent Sunderland, or closer to 5am for closer fought seats). Their tenure is inherently tied to electoral outcomes, and their job security hinges on the electoral support they receive from their constituents.
When an MP loses their seat at a general election, the immediacy will leave many in precarity. Some, famously, have richly rewarding “second jobs”, but many don’t. As such, IPSA (the Independent Parliamentary Standards Agency) provides financial support to outgoing MPS.
On losing a general election, MPs are paid an amount equivalent to four months’ salary. For this election, this would mean a take home payment of around £21,000.
In addition, those who have served more than two years receive an additional Loss of Office payment equivalent to double the statutory redundancy payment. Notably, if an MP has chosen to stand down and not fight an election, they are not entitled to this payment. Ministers get different severance payments for loss of office, with a cabinet minister receiving 25% of their ministerial salary.
On losing a general election, MPs are paid an amount equivalent to four months’ salary. For this election, this would mean a take home payment of around £21,000.
MPs who lose their seats are also entitled to a "Winding Up Allowance." This allowance helps cover the costs associated with closing down their parliamentary office, such as staff redundancy payments, office rental, and other administrative expenses. The aim is to ensure that former MPs can manage the practicalities of ending their service without financial distress.
You may think this is all a nice pay day for outgoing MPs.
While the employment status of MPs is inherently precarious due to the electoral process, mechanisms like the “redundancy” and Loss of Office payment, and Winding Up Allowance provide financial support to ease their transition out of parliamentary roles. These provisions reflect an understanding of the unique nature of parliamentary employment and the need to support public servants in their career transitions.