UK General Election Result 2024: The Labour Party returned to power as it posted a thumping win in the nation’s general polls results declared on Friday.
The Labour Party crossed the 326-seat threshold in the House of Commons for a working majority. As Rishi Sunak conceded defeat, Keir Starmer was formally appointed as the new prime minister by King Charles at Buckingham Palace.
While Sunak ‘apologised’ to the Conservatives and the supporters, he also announced that he will step down as the party leader with immediate effect. The 44-year-old failed to return to 10, Downing Street as the Conservatives suffered the worst-ever defeat in the snap election gamble gone wrong.
While Sunak and wife Akshata Murty have left number 10, there are several perks for the former British Prime Minister. According to the Institute for Government, all former PMs are entitled to a pension, which is formally known as the ‘Public Duty Costs Allowance’.
This fund was established after the resignation of Margaret Thatcher back in 1990. According to the official rules, a former PM is entitled for an annual pension of £115,000 for life. This allowance covers the ‘office cost’ arising for the former leaders due to their special position in public space.
All former PMs can claim the allowance but they can forgo it. For example, in 2022-23, Boris Johnson was eligible for the pension. However, he never submitted any claims to the Cabinet Office.
On the other hand, former residents of 10, Downing Street such as Tony Blair, John Major, David Cameron, Gordon Brown, Theresa May and Liz Truss have claimed at some part of the ‘Public Duty Costs Allowance’.
Apart from the PDCA, all former British PMs are also eligible for severance pay. According to the official rules, all ministers including the PM are eligible for a severance payment. Usually, this is a one-off pay of 25 per cent of their annual salary.
Sunak may be eligible for the pension but the former banker, who is technically richer than King Charles, already has several lucrative offers lining up. A Fortune report said that should he return to the world of finance, Sunak will mint more money than his political stint. Sunak’s fellow ex-chancellor George Osbourne has been with mega groups such as Robey Warshaw and Blackrock in advisory roles. The Fortune report says that he has earned much more than his political role.
Another interesting avenue for Sunak can be public-speaking. Tony Blair, who was the ninth-longest running PM of all time, earned £1 million monthly in 2012 from public-speaking events. Similarly, official records show that Boris Johnson earned £3.5 million from speaking at public events alone.