MPs are expected to receive a pay rise of up to 10% despite protests from David Cameron and senior members of the opposition parties.

The Independent Parliamentary Standards Authority will make an announcement at 11.30am on Thursday that is believed to confirm its previous assessment that MPs’ pay should increase from £67,000 to as much as £74,000 a year.

However, a source close to the watchdog said there would be an announcement of an additional proposal that could go some way to soothing a public outcry over the rise.

The decision could put Ipsa on a collision course with prime minister, because he has repeatedly urged it not to proceed with the increase. But it could also force MPs to say what they will do with the rise. Two cabinet ministers and several Labour party figures have already said they will give any additional pay to charity.

Ipsa proposed the pay increase “to reflect that it had fallen behind” in 2013, and that it should be linked to average earnings after a two-year pay freeze.

After it was pointed out that public sector workers have had their pay frozen for several years, Cameron said the pay rise was unacceptable and urged Ipsa to think again.

After the election, Ipsa ordered a review of the decision to ask for any “new and compelling evidence” that it should not go ahead with the increase. That review closed on 30 June.

The decision to allow the increase was signed off by Ipsa’s board last week. Ipsa has the power to order that the increase – which is backdated to 8 May, the day after the general election – is paid immediately.

David Cameron has been under pressure to block the rise for MPs after his Tory colleagues Nicky Morgan, the education secretary, and Eric Pickles, the former communities secretary, both said they would give the extra pay to charity.

Three Labour party leadership candidates – Andy Burnham, Yvette Cooper and Liz Kendall – have all said they will not be taking the pay increase.

Cameron’s reluctance to urge other MPs to reject the pay increase has been seen as an attempt to keep his backbenchers on side with a majority of just 12. Many privately admit that they would like to accept it.

Cooper said the increase was “crazy”. “How on earth has David Cameron allowed this to happen? He needs to step in urgently and stop this MPs’ pay rise going ahead.

“The idea of increasing MPs’ pay by 10% at a time when nurses, care workers, police officers and our armed forces face another five years’ pay freeze is completely unfair. The Tories are cutting tax credits for ordinary families yet allowing this Ipsa increase to go ahead.



“If it does now go ahead, I won’t take it. If that is impossible then

I will put the money towards something like funding an apprenticeship or similar cause in my constituency. “But I hope the prime minister does the right thing and intervenes to stop Ipsa pressing ahead with this.”