Member News
A consultation document from the Independent Parliamentary Standards Authority (Ipsa) has laid out proposals for a new MPs' expenses system.
Professor Sir Ian Kennedy, chairman of Ipsa, said the recommendations should be in place before the next parliament.
There are significant differences with the proposals set out by Sir Christopher Kelly, the chairman of the committee on standards in public life, in November.
Ipsa will be the first system of independent regulation of MPs' salaries, allowances and financial interests.
It was established by Parliamentary Standards Act 2009, rushed through before the summer recess as a reaction to public fury after numerous press stories about expenses claims for duck houses, bathplugs and moat cleaning.
MPs may still be able to employ relatives under the Ipsa proposals, which are open for public consultation until February 11.
Sir Ian said Ipsa is considering proposals that a rental agency should be responsible for London accommodation for MPs.
"Arrangements should be flexible enough to take account of the diverse working patterns and demands placed upon individual MPs, and should not unduly deter representation from all sections of society," the consultation document said.
"The system should be clear and understandable. If it is difficult to explain an element of the system in terms which the general public will regard as reasonable, that is a powerful argument against it.
"The system should prohibit MPs from entering into arrangements which might appear to create a conflict of interests in the use of public resources.
"The system must give the public confidence that high standards of honesty and decency will be upheld."
On the consultation website members of the public are asked to respond to a series of proposals on MPs' accommodation, expenses, travel, staffing and the administration of the new system.
Ipsa proposes that MPs are eligible to claim for accommodation expenses unless their constituency contains a station within London transport zones 1 to 6.
"Apart from some temporary transitional arrangements for current MPs who are locked into arrangements for their current property, there will be no payment by way of expenses from public funds for the cost of mortgage interest to MPs in the next Parliament.
"This means we will not be allowing MPs to have a 'second home' at taxpayers' expense, and we will therefore not be giving them the opportunity to use public money to help increase the value of their homes.
"Funds will only be available for renting accommodation on the open market, or for hotel stays."
On hiring staff, three options for relatives are proposed – the Kelly report had recommended and end to the employment of MPs' family members at public expense.
Ipsa said will each MP will get funds for staff, on condition that MPs demonstrate that they are complying with employment law and are acting in accordance with good practice.
"We will require MPs to obtain prior authorisation before they enter into a contract with a new staff member.
"MPs should meet industry standards if they are to receive public money for the employment of staff.
"As employers, MPs have a responsibility to determine what is necessary to meet those standards."
Ipsa said it had received "very strong" representations that family members may be the best qualified applicant for the MP's office, and often work, without pay, far beyond the requirements of their contracts.
"On that basis, we feel it is right to allow an opportunity for others to set out to us their views on whether prohibiting the employment of family members is necessary and proportionate."
Ipsa proposes three options: prohibit the use of public money in employing family members; revise the recruitment process for MPs' staff could be revised, with safeguards put in place to strengthen independence and transparency or allow some or all of an MP's appointments to be made without a fair, open competition.
The new expenses system will be automated and all claims will have to be electronically submitted by the relevant MP directly and supported by documentary evidence "unless there are strong reasons otherwise".
MPs will not be able to enter into long-term arrangements to spend significant quantities of public money without prior approval.
Two examples of this might be entering into a contract on office accommodation, or taking on a new member of staff.
"We believe that all claims, whether approved or not, should be published along with the supporting evidence and details of the outcome," Ipsa said.
"We intend to publish the claims as quickly as possible after they are made.
"We will reject any evidence which the MP or their staff member has attempted to 'redact' before passing to us.
"We are also considering requiring each MP to publish an annual report, setting out publicly how they are spending the public money they receive."
The communication allowance will be abolished, as will golden goodbye payments to MPs leaving parliament.
CLICK HERE to read the consultation document.
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