Newly elected Labour MPs in July last year (Image: Getty )

       MPs are set to be given a pay rise above inflation that could take their salaries up to ￡98,000 - but as much of the nation struggles with high bills and the cost of living, are our politicians worth the extra money?

       The Independent Parliamentary Standards Authority (Ipsa) announced on Monday that it is proposing to increase MPs' pay by 2.8% in April, subject to a consultation.

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       If approved, the increase would take an MP's annual salary to ￡93,904, up from ￡91,346.

       At the same time the Labour Government has voted in council tax rises, slashed winter fuel payments and slapped farmers with a new inheritance tax, all while energy and water bills continue to rise.

       READ MORE... MPs set for ￡2,500 pay rise despite cost-of-living crisis for ordinary Brits

       MPs sitting in the House of Commons debating national issues (Image: PA)

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       The Ipsa proposal is in line with the Government's recommendations on a wider public sector pay increase for this year and slightly above the current inflation rate of 2.5%. The Bank of England has forecast an increase in inflation later this year.

       MPs do not determine their own salaries, which have been set by Ipsa since the watchdog was established in 2011 in the wake of the expenses scandal.

       Ipsa chairman Richard Lloyd said the body aims to "make fair decisions on pay, both for MPs and the public".

       He added: "Our pay proposal for 2025-26 reflects the experience of the wider working public sector population, and recognises both the vital role of MPs and the current economic climate."

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       Labour are hoping to bump up the amount MPs are paid (Image: Getty )

       Ipsa will consult on its proposals until mid-March. It is also carrying out a wider review of MPs' salaries, which it is obliged to do in the first year after an election.

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       Responding to the Ipsa’s announcement, John O’Connell, chief executive of the TaxPayers' Alliance, said: "This will be a bitter pill to swallow given politicians of both front benches have for years hammered the living standards of taxpayers.

       "MPs are guilty of delivering a record high tax burden, persistent inflation and struggling services, yet are now being rewarded for this catalogue of failures.

       "Pay for politicians should be strictly linked to the country's economic performance, ideally to actual living standards measured by GDP per capita."