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Expenses system for MPs unveiled New MPs' expenses to be revealed
(about 5 hours later)
Final details of the new streamlined expenses system for MPs are due to be published by Parliament's new watchdog. Details of an overhauled MPs' expenses system will be published later, nearly a year after damaging expenses leaks.
The Independent Parliamentary Standards Authority (Ipsa) will unveil the new regime following the expenses scandal. The review is expected to ban MPs from buying taxpayer-subsidised second homes and from employing relatives.
MPs have already criticised its plans to end taxpayer-funded first-class rail travel and the buying of homes with taxpayer-subsidised mortgages. But an MPs' committee has warned some proposals could deter less wealthy people from standing and create "considerable financial uncertainty".
The measures were based in part on last year's Kelly Report by the Committee on Standards in Public Life (CSPL). The measures were based in part on last year's report by the Committee on Standards in Public Life.
'Watered down' The committee, chaired by Sir Christopher Kelly, carried out a seven-month inquiry into the much discredited expenses system - which was brought forward after details of MPs' claims were leaked to the Daily Telegraph.
Other Ipsa's proposals, already put forward in January, include scrapping the "golden goodbye" of up to £65,000 for retiring MPs, and curbing the number of MPs who receive funding to maintain a second home. 'Flipping'
The last proposal means MPs living close to Westminster would be expected to commute to work. There was uproar when claims for expensive TVs and furniture emerged alongside stories about MPs who made profites by "flipping" the properties they claimed for, did not pay capital gains tax on profits and over-claimed for mortgages.
WHAT MPs MUST REPAY £4,000 for hotel stays£711,000 for mortgage/rent£12,000 for food £10,000 for utilities£35,000 for 59 Council Tax/Rates£23,000 for phone & telecoms£105,000 for cleaning£81,000 on service/maintenance£73,000 repairs/insurance/security: £252,000 - 182 other payments:Total: £1,306,000 All the party leaders signed up to the committee's findings - but many MPs were unhappy at moves to stop them employing relatives at public expense and reduce other claims.
Ipsa chairman, Professor Sir Ian Kennedy, is due to release the final details following a consultation earlier this year. Few citizens have to bear a range of business expenses from their own pockets Members' Allowances Committee
Dozens of MPs have protested, arguing the prohibitive measures would deter those from less affluent backgrounds or with families from standing for Parliament. A new body, the Independent Parliamentary Standards Authority, was set up to run the new expenses scheme and began by consulting on the Kelly committee's findings.
The Members' Allowances Committee, which represents MPs' interests on expenses, said they would cause "considerable financial insecurity". In its response to the consultation the Members' Allowances Committee - which represent MPs - said a scheme that was "pared down too far" could reduce the service MPs provide to constituents.
And some MPs have proposed that their expenses be scrapped altogether in return for hiking their pay to £100,000 a year, compared to £65,000 now. It said: "The proposed system would increase the range of expenses MPs have to pay for themselves... few citizens have to bear a range of business expenses from their own pockets."
Ipsa was set up after last years's expenses scandal, after which it was agreed MPs could no longer set their own rules. And it said "good quality candidates" might be put off standing as MPs if there were "financial penalties", if it was harder to see their families or "reduced job satisfaction through expenses rules which are unnecessarily inflexible and bureaucratic".
So far MPs have paid back more than £1m in expenses claims. 'Well-founded'
The committee said it was particularly concerned about the possibility that people with families and those "without private means" would be put off standing.
The old system was criticised for "lax" rules and many MPs whose claims were criticised defended themselves by saying their claims were within the rules at the time.
The author of the original recommendations, Sir Christopher Kelly has warned that he will be disappointed if his "well founded" proposals are not carried out in full.
Sir Ian is charged with setting up and running a new scheme
And he said he did not accept that "cleaning up the system of expenses so that what it does is what it should do, which is reimburse MPs for expenses properly incurred" would put people off standing.
The man in charge of deciding which go forward, Ipsa chairman Sir Ian Kennedy, has denied suggestions he plans to water down its proposals.
But he has said it is not clear how some - including a proposal to make MPs give up some of the profits from the sale of their taxpayer-funded second home - would be achieved.
There also appeared to be some difference between Sir Ian and Sir Christopher on which MPs should not be able to claim for a second home at all - either to rent or buy - because they represent seats close to London.
'Golden goodbyes'
Sir Christopher said it should be MPs within "reasonable commuting distance" of Westminster - Sir Ian's consultation suggested that it should only be those with constituencies with stations in the London transport zones one to six.
However Sir Ian's consultation suggests that in some areas he may go further than the Kelly recommendations, including scrapping altogether the generous "golden goodbye" payments to MPs who have announced they are standing down.
Some long-serving MPs who are standing down at this general election will be entitled to a payment of up to £64,000 - £30,000 of which is tax-free.
The scandal prompted temporary curbs on the expenses scheme and an audit of five years' worth of previous claims under the second homes allowance.
MPs have been asked to return more than £1m in claims which auditor Sir Thomas Legg ruled should never have been paid out.
Some have voluntarily chosen to repay more - in the face of anger from their constituents.
The reports also prompted further inquiries into some cases by Parliament's standards commissioner John Lyon and by the Metropolitan Police.
Three MPs and one peer currently face criminal charges over their claims - all deny any wrongdoing.