Is Humza Yousaf entitled to £52,000 a year for life after his resignation?

Published

4 months ago

May 13, 2024

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When Humza Yousaf resigned as Scotland’s first minister, questions were raised over what his pension would be.

Some on social media have claimed the 39-year-old is entitled to £52,000 per year for the rest of his life – and payments will begin immediately.

There’s just one problem: this isn’t true.

While such a pension scheme used to be in place, it was scrapped in 2009.

So what will he receive… and when?

When he reaches the Scottish Parliamentary Pension Scheme retirement age – which is currently 65 – Mr Yousaf will be entitled to up to around £2,600 per year for the period he served as first minister.

The former SNP leader is also entitled to further retirement payments from his time as an MSP and as a Holyrood minister.

A law introduced in 1999 said that “any person who has held the office of first minister or presiding officer shall, on ceasing to hold that office”, be entitled to a pension.

It added that “the annual amount of a pension payable under this article shall be equal to one half of the salary”.

But 10 years later, new legislation was passed that meant that anyone who became first minister after 2009 was no longer entitled to that type of pension.

The first minister of Scotland is currently paid £176,780 per year – but £72,196 of that amount is for their work as an MSP and would not be included in such a calculation.

If the old rules were still in place today, Mr Yousaf would have been entitled to a pension of £52,292, which is half of £104,584 – his additional pay for being leader.

But Mr Yousaf was elected first minister on 19 March 2023, so is not covered by the previous law. Instead, that part of his pension entitlement will be based only on his time in office up to his resignation on 7 May.

MSPs have two pension options which mean they can contribute either a higher or a lower proportion of their salaries each year.

If an MSP contributes the higher rate, they are entitled to one-fortieth of their final annual salary as a pension. If they contribute the lower rate, they are entitled to one-fiftieth of their final salary as a pension.

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Because Mr Yousaf served for just over a year as first minister, he will be entitled to a pension of either one-fortieth or one-fiftieth of £104,584. That would equate to around £2,600 or £2,100 per year, depending on which option he chose.

He will also be entitled to a pension for the years he serves as an MSP. Mr Yousaf was elected as a regional Glasgow MSP in 2011 and in 2016 became the Glasgow Pollok MSP, an office he still holds.

If he were to step down today after 13 years in Holyrood – assuming he had been paying the higher contribution for that entire period – he would be entitled to a little under £23,500 per year, which is added to his first minister pension.

Mr Yousaf is also entitled to further pension payments from his various ministerial roles.

He served as a minister for five years and nine months in the Scottish parliament and then as a Scottish secretary of state for four years and nine months. Combined, these entitle Mr Yousaf to another pension pot of a little over £7,200.

By the calculations on current figures, and assuming he has contributed the higher rate for all of his time as an MSP, Mr Yousaf is currently entitled to around £33,300 in yearly pension payments when he retires at, or beyond, age 65.

Politics

African economies show high potential for digital asset adoption

Published

20 hours ago

September 22, 2024

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African economies show high potential for digital asset adoption

South Africa emerges as a leading digital asset hub, driving growth in crypto with proactive regulations and expanding platforms like VALR.

Politics

Angela Rayner promises flagship workers’ law next month as she pledges ‘things can get better’

Published

21 hours ago

September 22, 2024

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Angela Rayner promises flagship workers' law next month as she pledges 'things can get better'

Angela Rayner has promised to bring Labour’s flagship workers’ rights bill to parliament next month as she told her party’s conference: “Things can get better if we make the right choices.”

The government has faced criticism in recent weeks over its pessimistic messaging around the economy, with Prime Minister Sir Keir Starmer warning October’s Budget would be “painful” in order to deal with the £22bn “black hole” he claims was left by the Conservatives.

But while his deputy said the party “can’t wish our problems away”, she said “hope won” when Labour achieved its landslide at the last election, adding: “Change has begun.”

Politics live: Rayner speaks at Labour conference

Speaking on the conference floor on the first full day of Labour’s annual gathering, Ms Rayner said: “Let me be blunt. We can’t wish our problems away. We have to face them. That’s the difference between opposition and government.

“But… things can get better if we make the right choices. Sustained economic growth is the only way to improve the lives of working people, and we’re fixing the foundations to put Britain back on the path to growth. No more talking, but doing.”

The deputy prime minister reiterated her party’s plans to improve renters’ rights, including ending no-fault evictions “for good”, as well as promising a “devolution revolution” in the north of England, and the “biggest boost to social and affordable housing in a generation”.

But some of the biggest cheers from delegates came over her long-trailed plan to increase workers’ rights across the country, with her promising to bring the Employment Rights Bill to the Commons in October.

Concerns have been raised over the legislation by some in the business community, with an Institute of Directors’ survey earlier this month citing the bill as a reason for pessimism among firms who fear the impact on their operations.

But the government has sought to play down any divide, and held several roundtables with company leaders in recent weeks to allay their fears.

Championing the bill, Ms Rayner said: “They said we couldn’t do it. Some tried to stop it in its tracks. But after years of opposition, we are on the verge of historic legislation to make work more secure, make it more family friendly, go further and faster to close the gender pay gap, ensure rights are enforced and trade unions are strengthened.

“That means repealing the Tories’ anti-worker laws and new rights for union reps too. A genuine living wage and sick pay for the lowest earners, banning exploitative zero-hour contracts and unpaid internships, ending fire and rehire. And we will bring in basic rights from day one on the job.

“This is our plan to make work pay, and it’s coming to a workplace near you.”

Concluding her speech, the deputy prime minister said: “On 4 July, the people entrusted us with the task of change and hope won. Now is our moment, not just to say, but to do.

“Labour governments of the past took on this same challenge at a time when Britain desperately needed change. They delivered a better Britain when the odds were stacked against them.

“And that is exactly what this Labour government must deliver once again. So conference, let’s get on with it.”

Politics

Angela Rayner to announce renters’ protections at opening of Labour Party conference

Published

22 hours ago

September 22, 2024

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Angela Rayner to announce renters' protections at opening of Labour Party conference

Angela Rayner will set out measures to protect renters from fire safety defects, damp and mould in her speech at the Labour Party conference.

The deputy prime minister, who is also the housing secretary, will commit to “building homes fit for the future” when she opens the party’s first annual gathering since winning the general election.

The package will include bringing forward a Remediation Acceleration Plan this autumn to speed up the removal of unsafe cladding on high-rise buildings.

Deadly cladding remains on more than half of all residential blocks of flats identified as at risk since the Grenfell fire in 2017.

The issue has come back into the spotlight following the conclusion of the inquiry into the tragedy, which found that “systematic dishonesty” contributed to the blaze that killed 72 people.

The announcement of the acceleration plan was thin on detail, but the government said it would go “further and faster to fix unsafe cladding and make existing homes safe”.

Other measures Ms Rayner will announce on Sunday include consulting on a new “decent homes standard” for the social and private rented sectors, and a new law to make landlords respond to complaints about disrepair within legally binding timescales.

These have already been announced as part of Labour’s Renters’ Rights Bill, which builds on long-awaited legislation that was promised by the Tories but ultimately shelved ahead of the general election.

The law regarding repairs will be named after two-year-old Awaab Ishak, who died as a direct result of exposure to mould in the social home his family rented in Rochdale, Greater Manchester.

The Conservatives first proposed Awaab’s Law to cover the social rented sector, but Labour will extend it to cover the private sector in a move they say will help tenants in 746,000 homes with reported serious hazards secure faster repairs.

Commenting ahead of her speech, Ms Rayner, who has also pledged to build 1.5 million homes over the next five years, said: “Just because Britain isn’t working at the moment, it doesn’t mean it can’t be fixed.

“We will deliver for working people and, in doing so, show that politics can change lives.

“This Labour government is taking a wave of bold action to not only build the housing our country needs and boost social and affordable housing, but to ensure all homes are decent, safe, and warm.”

The speech comes as a donations row threatens to overshadow the optimistic mood of the party’s first conference while in government for 15 years.

The prime minister has come under scrutiny over the past week for the more than £100,000 worth of gifts he has accepted, including tickets to football matches, concerts and luxury clothes.

Following days of press coverage on the issue, it emerged on Friday that Sir Keir and his most senior ministers – Ms Rayner and Chancellor Rachel Reeves – will no longer accept donations to pay for clothes.

On Saturday, Culture Secretary Lisa Nandy told Sky News that there had not been an undue influence in gifts accepted by her colleagues but “we don’t want the news and the commentary to be dominated by conversations about clothes”.

She defended the prime minister’s actions as being within the rules, saying that the taxpayer doesn’t fund these things “so MPs will always take donations, will always take gifts in kind”.

She added: “We expect our politicians to be well turned out, we expect them to be people who go out and represent us at different events and represent the country at different events and are clothed appropriately.

“But the point is that when we accept donations for that or for anything else, that we declare them and we’re open and transparent about them.”