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MPs to lose second homes claims MPs to lose second homes claims
(9 minutes later)
MPs will not be allowed to buy taxpayer funded second homes under new expenses rules to start after the election.MPs will not be allowed to buy taxpayer funded second homes under new expenses rules to start after the election.
Those with constituencies at least 20 miles or 60 minutes from Westminster will be able to claim up to £1,450 a month - equivalent to a one bed flat.Those with constituencies at least 20 miles or 60 minutes from Westminster will be able to claim up to £1,450 a month - equivalent to a one bed flat.
Expenses chief Sir Ian Kennedy said all claims would require receipts. Payoffs to retiring MPs will be stopped but MPs will be able to employ one relative. Expenses chief Sir Ian Kennedy said all claims would need receipts but MPs will be able to employ one relative, as doing so could offer "value for money".
He said the "tough" rules were a "clear break" with the old discredited system.He said the "tough" rules were a "clear break" with the old discredited system.
Sir Ian, head of the new Independent Parliamentary Standards Authority, has been considering proposals drawn up after a seven-month inquiry last year.Sir Ian, head of the new Independent Parliamentary Standards Authority, has been considering proposals drawn up after a seven-month inquiry last year.
Profits recoupedProfits recouped
He rejected its proposal that MPs should not be allowed to claim to employ any relatives - he said they could offer "value for money" as long as there were safeguards in place. He unveiled a new regime which will see a computerised system used to make and process claims, to start the day after the general election.
These included a limit of one relative - which also extended to civil partnerships, live-in co-habitees and financial partners - an agreed contract and pay range and "no bonuses". Sir Ian rejected its proposal that MPs should not be allowed to claim to employ any relatives - he said they could offer "value for money" as long as there were safeguards in place.
It's not our job to punish MPs for past wrongdoings, it's our job to publish new rules that give the public value for money and allow MPs to do their jobs Sir Ian Kennedy class="" href="/2/hi/uk_news/politics/8587661.stm">MPs' expenses: Old vs new rules class="" href="http://www.bbc.co.uk/blogs/haveyoursay/2010/03/do_the_new_expenses_rules_add.html">Send us your comments These included a limit of one relative - which also extended to civil partnerships, live-in co-habitees and financial partners - an agreed contract and pay range, and "no bonuses".
On accommodation, he said his proposals would reduce maximum annual accommodation and office claims from £56,915 to £40,957 for MPs with seats outside London and from £40,192 to £26,915 for the rest. It's not our job to punish MPs for past wrongdoings, it's our job to publish new rules that give the public value for money and allow MPs to do their jobs Sir Ian Kennedy class="" href="/2/hi/uk_news/politics/8587661.stm">MPs' expenses: Old vs new rules
He said there would be "no second homes under the new rules" for MPs - instead they would be able to rent accommodation up to the value of a one-bedroom flat. The new rules will reduce maximum annual accommodation and office claims from £56,915 to £40,957 for MPs with seats outside London and from £40,192 to £26,915 for the rest.
Only those with constituencies at least 20 miles outside Westminster - or a 60-minute commute from Parliament - would be able to do so, which would stop 128 MPs from claiming for a second home at all. MPs will not be able to claim towards the cost of buying a second home, instead they will have to rent accommodation up to the value of a one-bedroom flat.
'Cost effective' Under new restrictions on who can claim to rent accommodation, 128 MPs will not be eligible to do so because their constituencies are too far out.
MPs who already own taxpayer-funded second homes will be able to keep claiming until August 2012 - a shorter timescale than the five years Sir Christopher had recommended - but Sir Ian said profits would be "recouped". 'Tough but fair'
"It's not our job to punish MPs for past wrongdoings, it's our job to publish new rules that give the public value for money and allow MPs to do their jobs," he said. MPs who already own taxpayer-funded second homes will be able to keep claiming until August 2012 but Sir Ian said profits would be "recouped".
NEW RULES No claims towards mortgagesTravel costs reducedOne-relative limit on staffNo 'golden goodbyes'No gardening or cleaning claimsExtra help for MPs with young children MPs with children aged under five, single parents with children under 21 and those caring for disabled children and adults will get extra support, Sir Ian said.
MPs with children aged under five, single parents with children under 21 and those caring for disabled children will get extra support, Sir Ian said. "It's not our job to punish MPs for past wrongdoings, it is our job to establish new rules which give the public value for money, allow MPs to do their job and provide for vigilance against abuse," he said.
But he said they were still looking at "cost-effective" ways of finding rental accommodation - Sir Christopher Kelly had said a commercial rental agency should be used to find MPs' flat. NEW RULES No claims towards mortgagesReduced travel claimsOne-relative limit on staffNo 'golden goodbyes'No gardening or cleaning claimsExtra help for MPs with young children class="" href="/2/hi/uk_news/politics/8587661.stm">MPs' expenses: Old vs new rules
Cleaning and gardening claims would no longer be allowed, nor would claims for accountants to work out MPs' tax - something several MPs were criticised for. "The new rules will be fair, workable and transparent. This is a tough settlement but a fair one."
Claims for the "daily commute" would not be allowed, Sir Ian said, although MPs would be reimbursed for trips between Westminster and their constituencies. MPs'claims, and Ipsa's responses to them will be published on a "rolling" basis, the body's interim chief executive Andrew McDonald said.
Until recently they have only been published once a year under general headings and Commons authorities spent £150,000 fighting to keep more details secret. Sir Ian said the new system would be "transparent".
Cleaning and gardening claims will no longer be allowed and MPs will have to pay for their own "daily commute" although they will be able to claim for trips between Westminster and their constituencies.
'Golden goodbye'
MPs could claim for public transport costs at the "any time standard open rate" but claims for "significantly fewer" journeys by MPs' families would be allowed.MPs could claim for public transport costs at the "any time standard open rate" but claims for "significantly fewer" journeys by MPs' families would be allowed.
The £25-a-night "subsistence allowance" MPs have been able to claim without receipts would end. Instead MPs will be able to claim £15 for an evening meal, when the House sits after 7.30pm, if they produce a receipt.The £25-a-night "subsistence allowance" MPs have been able to claim without receipts would end. Instead MPs will be able to claim £15 for an evening meal, when the House sits after 7.30pm, if they produce a receipt.
A budget for up to three-and-a-half full time staff would be allowed and offices rented from parties must be independently valued, he said. Sir Ian said Ipsa would pay out for two months "winding up" costs when MPs' leave Parliament but would not give MPs a "resettlement allowance" - the one-off payment of up to £64,000 retiring MPs can currently claim, dubbed a "golden goodbye".
He said Ipsa would pay out for two months "winding up" costs when MPs' leave Parliament but would not give MPs a "resettlement allowance" - the one-off payment of up to £64,000 retiring MPs can currently claim, dubbed a "golden goodbye". Today marks a fresh start and a clean break with the past Harriet HarmanCommons leader
Sir Ian said that was not an expenses matter and should be considered as part of any future remuneration package. He said that was not an expenses matter and should be considered as part of any future remuneration package.
"Should we be given responsibility for MPs' pay, we will consider the matter afresh but no-one currently standing for Parliament should make any assumptions about its availability in the future," Sir Ian said. A bill going through Parliament would create a compliance officer with the power to impose sanctions on MPs who break the rules.
If if it did not go through the new Independent Parliamentary Standards Body would have to refer breaches to the standards commissioner John Lyon.
Commons leader Harriet Harman said the new scheme "puts in place a fully independent, transparent system, which will be subject to robust audit and assurance".
'Buckled'
She said: "The public's anger and deep concern over the discredited arrangements of the previous system of expenses is justified and today marks a fresh start and a clean break with the past."
And Commons Speaker John Bercow said it was a "massive advance on the old discredited allowances arrangement".
"The swift end to state-sponsored second homes and the overall reduction in total costs which this reformed system entails are very welcome," he said.
But he added he personally favoured a "complete ban" on family members working for MPs.
Matthew Elliott, of the TaxPayers' Alliance pressure group, said it was "unbelievable" that MPs could keep employing a relative.
"Ipsa originally proposed a ban, and the consultation backed them overwhelmingly on it, but they seem to have buckled under lobbying from MPs," he said.