Ah, the MP pension scheme. That’s separate from their salary. If they’ve been an MP for more than two years, they’ve built up a little nest egg. Resigning doesn’t vaporize that. They can take it as a pension when they hit the qualifying age (usually 65, same as most of us mere mortals).
But here’s the funny part: some MPs resign early in their term. If they’ve only served, say, 18 months? Their pension pot is tiny. That resettlement grant might literally be the only cash they see. Moral of the story? Don’t quit your day job—unless your day job is MP, in which case, maybe do resign if you’re miserable. Just know you’re eating beans on toast for a bit.
The “Golden Goodbye” Myth
You’ve probably heard the rumors: “They get a HUGE payout when they quit!” Let me kill that rumor with a polite, cheerful sword. It’s not a golden goodbye. It’s copper at best.
The resettlement grant is capped. For an MP who served a full term (five years), it’s around £21,000. That’s less than a quarter of their annual salary. And keep in mind: they’re losing their salary, their office budget, their staff. So that £21,000 is meant to cover everything while they job hunt. Yikes.
Compare that to a corporate CEO who resigns and gets a $10 million handshake. That’s a golden goodbye. This is more of a “bronze, slightly tarnished, see-you-later.”
Bin The Labour Party: CITY OF CHESTER MP RESIGNS
