Background: Smith expenses row
Home Secretary Jacqui Smith is facing embarrassment after "mistakenly"
claiming second home expenses for two adult films watched by her
husband. How do MPs' allowances work?
WHAT HAS MS SMITH DONE WRONG?
The Sunday Express reported that two films, which cost £5 each, were
viewed on 6 and 8 April 2008 at Ms Smith's constituency home in
Redditch, Worcestershire. Ms Smith claimed for these movies - watched by
husband Richard Timney - under her second homes allowance. She has
apologised, adding that "in claiming for my internet connection, I
mistakenly claimed for a television package alongside it". She has
promised to pay the amount back in full. Tory leader David Cameron has
called the incident "deeply embarrassing"
is not a resignation matter.
ISN'T THE HOME SECRETARY ALREADY BEING INVESTIGATED?
Yes. Ms Smith is being investigated by the Parliamentary Commissioner
for Standards, John Lyon, over her decision to claim at least £116,000
in second-home allowances the family home in Redditch since becoming an
MP. The home secretary says her main residence - the one at which she
spends most time - is her sister's home in London, where she rents a
room. Some neighbours dispute this. Mr Cameron said it was "pretty
incredible to claim that the home where her family is, that is not her
main home".
WHAT DOES THE SECOND HOMES ALLOWANCE COVER?
The Additional Costs Allowance - which covers the cost of running a
second home or rent or hotel expenses - is being renamed Personal
Additional Accommodation Expenditure (PAAE). The allowance is designed
to cover the extra costs MPs incur by having to attend Parliament in
central London and also having to look after people in their
constituency - which may be hundreds of miles away. Most MPs claim it on
their London base although some claim it on their constituency home. In
2008/9 the allowance limit is £24,006. All MPs can claim it except for
MPs representing 25 inner London boroughs. It covers rent, or mortgage
interest payments, hotel expenses, telephone and gas, electric bills,
furnishings, cleaning, insurance and repairs. It also includes a
"subsistence allowance" of £25 for every night an MP spends away from
their main home, on Parliamentary business - which includes claims for
food for which no receipts need to be provided. The amount that can be
spent on furnishings is capped at 10% of the overall allowance.
ARE ANY OTHER MINISTERS UNDER INVESTIGATION?
Yes. Work minister Tony McNulty is also being investigated by Mr Lyon.
It recently transpired that, until January, the MP had claimed up to
£14,000 a year, since 2001/2, for a home in his Harrow East constituency
where his parents live. He lived there with his parents until his second
marriage in 2002, when he moved into his wife's home in Hammersmith,
west London. Mr McNulty has said he uses the house as a base at weekends
when he is working in his constituency and used to sleep there at
weekends but says it "probably is less now". But the Conservatives say
he already has a base in the constituency less than two minutes' drive
away. Mr McNulty stopped claiming for the Harrow house in January - he
says this was because interest rates fell and he could afford the
mortgage from his salary. Although Harrow is only 11 miles from
Westminster Mr McNulty is able to claim the second home allowance as it
is not one of the 25 inner London constituencies whose MPs do not
qualify for it.
SALARY AND ALLOWANCES
MPs are paid an annual salary of £63,291 and receive allowances for the
costs of running an office, having homes both near Westminster and in
their constituency, and travelling between both. According to the last
figures to be published, in October 2007, the average claimed by each MP
was £135,600 a year. They also have a final salary pension scheme and
can choose to set contributions at 5.5% of their salary with a current
"accrual" rate - the proportion of salary received for each year of
service - of 1/60th, at 6% of salary for a 1/50th accrual rate, or 10%
of salary for a 1/40th accrual rate. TRAVEL EXPENSES
There is no limit on the amount of travel expenses MPs can claim - but
it is subject to certain rules. They can claim business class air fares
and first class rail travel for Parliamentary business within the UK and
up to three visits a year to European institutions, as well as up to 30
single journeys a year for spouses or children. MPs can also claim for
staff travel - up to 24 single journeys a year between Westminster and
their constituency. Overall MPs claimed £4.5m in travel expenses in
2006/7.
MILEAGE
Drivers can claim 40p a mile for the first 10,000 miles then 25p a mile,
cyclists get 20p a mile while motorcyclists can claim 24p a mile. These
rates can be claimed for journeys between Westminster, their
constituency and their main home. LONDON SUPPLEMENT
This is claimed by MPs representing inner London constituencies and is
worth up to £2,916. It is due to rise to £7,500 from 1 April 2009, when
it will be known as the London Costs Allowance. MPs representing outer
London seats can choose to claim this or the additional costs allowance.
INCIDENTAL EXPENSES ALLOWANCE
Worth up to £22,193, this allowance is aimed at costs incurred in the
course of an MP's duty - such as accommodation costs, office equipment
and supplies.
STAFFING ALLOWANCE
Worth up to £100,205 a year, this allows MPs to employ staff, but is
paid directly to staff by the Commons finance department. There is no
ban on MPs employing their spouse or other relative and paying them
using the staffing allowance, but MPs now have to declare any relatives
employed. Home Secretary Jacqui Smith employs her husband Richard Timney
as her aide on a salary that could be as much as £40,000 a year.
CENTRALLY PURCHASED STATIONERY
There is no limit to the amount of stationery an MP can order but it
must be used for strictly Parliamentary purposes, such as constituency
correspondence.
IT EQUIPMENT
IT equipment is centrally provided and maintained. The standard package
available for MPs is three PCs, printers and scanners worth about
£3,000.
WINDING UP ALLOWANCE
Worth a maximum of £40,799, this allowance is paid to cover the costs of
any work on Parliamentary business done on behalf of an MP who has died,
retired or lost their seat.
COMMUNICATIONS ALLOWANCE
Introduced in 2007 it allows claims of up to £10,400 a year "to assist
in the work of communicating with the public on parliamentary business".
It can be spent on things like regular reports, constituency
newsletters, websites and contact cards. It cannot be spent on party
political, fundraising or election campaigning.
RESETTLEMENT ALLOWANCE
Paid to MPs who lose their seat or stand down at a general election - it
is based on their age and length of service and amounts to between 50%
and 100% of their annual salary.
Story from BBC NEWS:
http://news.
Published: 2009/03/30 09:16:15 GMT
Tuesday, 31 March 2009
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