A REVIEW appeared to rule out lower “local pay” for MPs in the North yesterday – even as ministers continue to pursue the idea for public sector workers.

The Independent Parliamentary Standards Authority (IPSA) suggested the idea was a non-starter because all MPs “live and work in London for a large part of the week”.

Opponents of local pay – which threatens state workers in the North with longterm pay freezes, given the one per cent public sector cap nationwide – had suggested it should, at the very least, apply to MPs as well.

But IPSA, in a wide-ranging review of MPs’ pay and pensions, has decided MPs are in a different situation to health workers, teachers and civil servants.

Its report states: “The Government has been exploring the idea of introducing regional pay for civil servants and others working in the public sector, based on the average earnings and the economy in particular geographical areas.

“The pay of MPs does not currently reflect regional variations in, for example, the cost of living and working in a particular constituency.

“Given that most MPs live and work in London for a large part of the week when parliament is sitting, the arguments advanced for regional pay may not apply.”

The conclusion was seized on by Tom Blenkinsop, Labour MP for Middlesbrough South and East Cleveland, as further evidence that the local pay plans should be dumped.

Mr Blenkinsop said: “George Osborne is attempting to introduce local pay for public sector workers, yet one group of public sector workers – MPs – would be exempt.

“My own view is that local pay is wrong and, obviously, IPSA agrees when it comes to MPs.”

The Chancellor is currently considering the recommendations of the various pay review bodies that have been asked to investigate how to introduce local pay.

In this region, teachers and hospital staff are in the firing line – because their pay is higher than in the private sector – and women in the public sector face far more pain than men.

But no fewer than 22 of the 57 Lib Dem MPs signed a protest letter opposing local pay, suggesting Nick Clegg will face a major revolt if he ploughs ahead.

Meanwhile, IPSA’s report suggested further cuts to MPs’ pensions – to cut the costs of the scheme by £2m a year, or nearly one quarter.

And it highlighted the idea of having two salary levels – a lower one for the dozens of MPs who hold second jobs and a higher one for those who give up extra work.

IPSA also confirmed it is planning to restrict MP pay rises to one per cent in 2013 and 2014 – in line with those being imposed on the rest of the public sector.