Local MP on expenses row
MEMBERS EXPENSES
There has been a great deal of speculation in the press this year about MPs expenses. In the 10 years I have served Monmouthshire as an AM and MP I have always published details of how I have spent public money even before the Freedom of Information Act made this a necessity.
In July the Houses of Parliament will publish a detailed list of every receipt and claim submitted by every MP for the last 4 years. If, as I believe, this is to be published online I will add a link to my own section from my website.
I shall also be happy to answer any questions which the public, or press may have. In the meantime here is a list of the sorts of questions which have been put to me about expenses.
Is it true you can vote yourselves whatever salary you want?
We could until last year. Salaries are now set by SSRB which also set salaries for senior civil servants and judges. Since becoming an MP four years ago we have voted to keep them at or below inflation.
So how much do you get paid?
Salary: £63,291. After deductions net pay is around £3300 per month. This salary is more than I earned before I became an MP and I have no complaints. At about the same as a primary school Head teacher it is certainly generous. However those who believe that an MPs salary is so colossal that they no longer inhabit the real world are wide of the mark.
What about those directorships and outside interests?
Many MPs do have outside interests some paid some not, in business, medicine, the law running charities or serving in the TA. They would argue that these enable them to bring to the Commons experience of what is going on in those fields. I do not hold any paid positions outside parliament but I work unpaid as a Special Constable in London for around 16 hours each month. The knowledge of policing which I have gained from this has been hugely useful to me in Parliament.
What about all the “Expenses”?
The term is widely used by MPs the public and press (I use it myself) to describe various allowances which are allocated to MPs for different purposes. The term implies that the money is paid directly to the MP. In fact most is not and the term is, as I will attempt to show, somewhat misleading.
What are these allowances?
Additional Costs Allowance £23,083 known in the press as the “second homes allowance” “living in London allowance.”
This is the allowance that has caused the most controversy. Unlike the other allowances it IS usually handed directly to the MP. It is to cover the costs of accommodation in London or the constituency and can be spent on rent, mortgage interest, furnishing (within certain rules), council tax and other bills, alarms etc. This is not an exhaustive list. Basically anything which relates to maintaining a second home could be charged but once the money is gone it’s gone. There has always been one clear restriction; the money CAN NOT be used to pay the capital off on a mortgage.
Is this where the John Lewis list comes in ?
Yes although most MPs including myself were unaware of it. If an MP uses this allowance to claim for an item of furniture they are expected to purchase items which cost the same or less than they would in John Lewis. I had actually assumed that if MPs were mad enough, and so wished, they could spend the whole £23000 on a sofa – of course this would leave them only £83 to pay for accommodation in London for a year.
However MPs cannot simply go along to John Lewis, or anywhere else, and order unlimited items of furniture. MPs do get given £23,083 for purchasing accommodation in London and may use some of this money to buy furniture. This allowance cannot be exceeded.
How have I used the allowance?
In 2005 I purchased a flat about 20 minutes walk from Westminster. I have used the allowance to pay the interest on the mortgage, the bills and to furnish the flat (though not from John Lewis). Newly arrived MPs are advised that if they do not enter Parliament with wealth they should minimise the costs of mortgage interest or rent and use the money left over to pay the bills and for necessary items of furniture. This is what I have done. Wealthier MPs often choose to spend more on rent or paying the interest on a higher mortgage – the cost to the taxpayer is the same but this approach generates fewer headlines.
Do you have to submit receipts?
YES. In all categories of expenditure items costing more than £25 have to have receipts. As I believe my records will show I have generally always put in receipts or a written record for ALL amounts. I believe that the rules will shortly change to ensure that every amount has to have a receipt. I welcome this.
Why should the taxpayer fund accommodation for MPs?
A fair question. MPs these days are expected to spend much of the working week in London but to be present in their constituencies on weekends and when Parliament is not sitting. Effectively MPs are asked to live in two places. Some, myself included, would find it difficult to do this without this allowance. In many ways the ACA was seen as part of a salary package consisting of the salary the ACA and the Pension (which I will come to in a minute). None of these were in any way a secret.
Even the pressure group the Taxpayers Alliance, which has led the criticism of the current system, has accepted that help needs to be available for MPs to have accommodation in London.
What about MPs who are already wealthy? Why should they get the allowance?
Many MPs of all parties arrive at Westminster in their 40s or 50s having made considerable sums of money in their previous work. (Not me. Sadly!) They could afford to without the ACA, or indeed without any salary at all. However if it were decided not to pay, or give allowances, or salaries to MPs who arrive with a certain amount of money then this would the only profession where people are told that their salary or entitlements would depend on the amount of money they already had, or had saved. It would penalise people who had been successful in previous careers, and those who had saved money to accumulate assets. No other employer in the private or public sector could say to an employee “I want you to go away on business this week but as I know you are quite wealthy I am not going to pay your hotel bill.” From a practical point of view parliament would need to employ people to check the assets of all MPs then decide who could claim what based on some sort of formula. It would be extremely difficult to do.
So why can’t MPs stay in hotels?
Parliament sits for 165 days every year. At a cost of at least £150 for a reasonable hotel in central London this would cost more than the current allowance. It would also cost money to administer. It is also far less convenient than having a flat/ home where items can be stored and meals cooked. The ACA is cheaper more convenient.
Why not buy a block of flats and put all MPs in it?
The answer is that a building known to contain 650 MPs would be a terrorist target second only in significance to the House of Commons. The security costs alone would far outstrip the current costs of the ACA.
Parliament is surrounded on one side by the Thames on another by Portcullis House – which is part of the Parliamentary estate and on the third side by a park. The side which faces onto the road is chaos with protesters present 24 hours per day 7 days per week. One lane has been permanently closed off to put in place equipment to deter suicide bombers. The rest of the road is frequently shut completely because of protests. If the “block of flats” solution is taken up then this chaos will take place 24 hours per day over every road surrounding the block. It would not be popular with residents, businesses, or the local council.
The costs of renting, leasing or buying then maintaining and keeping secure a huge building near central London would be measured in hundreds of millions of pounds – even if such a place could be found.
There is another problem. Most MPs choose to keep their families in their constituencies and travel to London. Some MPs keep their families in London and travel to their constituencies. For some MPs their circumstances will change throughout their career depending on whether or not they have jobs in government which require them to be in London for more than the usual 3 nights per week. At present every MP has to sort out their own living arrangements. Any change would put the onus on the House of Commons.
What about those living near to London?
MPs living in outer London can still claim the ACA. This goes back to the days when Parliament sat all night – last votes now take place at 10pm and most MPs are on their way home before 11. In my opinion there is a need to change the rules.
What about Ministers who get grace and favour homes?
A few senior Ministers get a government flat. In my view it is clearly wrong that they should be able to live rent free in a government flat and continue claiming the ACA. It has gone on for many years but I believe this should be stopped.
What about the other expenses? Is it true that MPs get over a hundred thousand a year in expenses?
MPs get three other main allowances:
Staff costs of £90505. Anyone employing staff most draw up an employment contract which must be agreed by the House of Commons authorities. The salaries must be in line with the work being done and guidelines are published. This money is NOT given to the MP it is paid directly to the members of staff by the House of Commons authorities.
Office Costs of £21339 to pay for the running of the office, rental, stationary equipment. The rental agreement must be checked by an independent surveyor.
Communications Allowance of £10,000 this is used to pay for newsletters which have to be non political in nature. I also use my Communications Allowance to fund my website.
Although I myself have used the term “expenses” to describe the above they are not paid to MPs directly and are no more an MPs personal expenses than the money used to pay for the maintenance of a school building and salaries of teachers is the Head-Teachers “expenses.”
What about Travel?
On arrival MPs get given a credit card which can be used to buy rail tickets. Each month a printout of the tickets purchased showing the station travelled from and the date are sent to the MP who has to sign them off. The receipts will be published online. Mine will generally show that each week, usually on a Monday I travel from either Newport, Bristol or Swindon to London. (I alternate the route for various reasons) No surprise really. If any were to show that I travelled to Barry Island on a Bank Holiday that would be a surprise and people would be justified in asking questions. EVERY journey is shown. EVERY reciept should be published, if mine are not published by the House of Commons in July I will be happy to do it myself.
First Class? Yes we do get first class travel and yes I tend to take advantage of this. What about car mileage: We get 40p for the first 10000 miles and 25p thereafter. This is a standard civil service rate. MPs have reduced mileage rates on several occasions over the last 10 years.
Anything else?
The pension accrues at 40ths of salary making it more generous than most public sector pensions. However I am told that the average length of service for an MP is only 7 years. The pension is not payable until retirement age.
What about the subsidised food and the exclusive bars and restaurants?
A takeaway cup of tea is 50p, pre packed sandwiches between £2 and £3.50 and a cooked meal in the canteen with a drink about £4-£5. I drink very little alcohol but a glass of wine is about £2.50 and a bottle around £11. The prices are the same for everyone and the only place which is exclusively for MPs is the Members dining room. Apart from MPs there are several thousand people working in the House of Commons who all pay the same prices and most eat and drink at the same places.
The prices are lower than a commercial outlet would be in central London, but a commercial restraint which allowed mice to run about in broad daylight – yes I have seen it myself – would be closed down pretty quickly!
The above is my best attempt to honestly answer the kinds of questions which people have raised about MPs expenses. If I have left anything out please email This e-mail address is being protected from spambots. You need JavaScript enabled to view it
