MPs are to get a pay rise of 1.3%, nine months after they received a backdated boost to £74,000.

The latest rise, which will take effect from April, equates to another £962 in MPs’ pockets each year and breaks the government’s own 1% cap on public sector pay rises.

The Independent Parliamentary Standards Authority (Ipsa) said the rise was “in line with our determination on MPs’ pay, published in July 2015, where we committed to adjusting MPs’ pay for the rest of this parliament at the same rate as changes in public sector earnings published by the Office for National Statistics.

“The ONS index takes account of promotions and bonuses which may explain why the figure is higher than the 1% wider public sector pay policy.”

Ipsa made the decision to increase MPs’ salary from £67,000 to £74,000 in July last year, and backdated the rise to the previous May. The watchdog also ruled that future pay increases would be adjusted every year in line with average earnings within the public sector, rather than being linked to the whole economy as previously announced.

Ipsa has made clear the extra money will be paid automatically but that MPs are free to give sums to charity. The watchdog operates a payroll-giving scheme that allows MPs to donate to charity from their gross salary.

