DAVID CAMERON effectively handed penny-pinching MPs a backdated 10 per cent pay rise yesterday after the PM dropped his opposition to the extra cash.

He had previously condemned plans to ratchet MPs’ pay up to £74,000 as “simply unacceptable” while public-sector workers were restricted to 1 per cent rises.

But the Independent Parliamentary Standards Authority (Ipsa) said there appeared to be no material reason to change proposals for an increase from the current level of £67,000 and a craven Mr Cameron said it was for the watchdog to decide.

But after years of real-terms pay cuts, public-sector union GMB slammed hypocrite MPs. “We trust that none of the MPs accepting this pay rise as public servants will have the audacity to oppose the recommendations of pay review bodies or decent pay rises for public-sector workers,” said general secretary Paul Kenny.

“We look forward to this meaning that MPs will be able to devote 100 per cent of their working time to the interests of their constituents rather than some of them lining their pockets with second, third and fourth paid jobs outside Parliament.”

And Civil Service union PCS leader Mark Serwotka said: “It would be grossly hypocritical for any MP who voted for years of pay cuts for public sector workers to accept a 10 per cent increase for themselves.”

The PM’s own salary will go up from £142,500 to £149,440.

Ipsa will confirm the rises, which would be backdated to May 8, at the end of June unless “new and compelling evidence” is presented.

A rise was first proposed in 2013 due to cuts in pensions and expenses, such as a ban on claiming for evening meals. The watchdog claims that overall, the scheme will not cost the public “a penny more,” but it spent £70,000 consulting on the issue and found that the public broadly agreed with the current salary.

But Ipsa ploughed on anyway. “Subject to any new and compelling evidence arising from this review, we therefore intend to implement the determination as currently drafted, with a one-off adjustment in MPs’ pay to £74,000 and subsequently linking it to changes in average UK earnings for the remainder of this Parliament,” it said.

It had been rumoured that Mr Cameron would block the rise through legislation, but with his slim majority in Parliament, he might have found it very difficult.

Labour MP John Mann said: “At a time when the Chancellor is asking every government department to cut billions more from their budgets and public-sector employees have been offered a 1 per cent pay increase, this decision needs stopping”

But the Labour Party itself simply said: “It would feel wrong if Ipsa proposed an increase in MPs’ take-home pay at a time when so many people are struggling.”

Even the current government’s ideological bedfellows have complained. “It’s clear that Ipsa is hopelessly out of touch and not fit for purpose,” said Taxpayers Alliance boss Jonathan Isaby.