Thursday 29 October 2009

Why can’t they do this now?


From the Telegraph:

MPs will no longer be able to cash in on lucrative resettlement allowances if they stand down at future general elections or are defeated.

Current rules mean MPs are given up to £60,000 – almost a full year’s salary - when they leave the Commons.

The system has been called into disrepute after The Daily Telegraph’s expenses disclosures led to a number of MPs announcing they would stand down at next year’s election because of questionable claims.

However, because they are staying until the election they still qualify for the taxpayer-funded “golden goodbye.”

It means MPs such as Elliot Morley, the former Labour minister who was exposed for claiming £16,000 for a mortgage that had already been paid off, will still get the pay-off. Others, such as David Wilshire, the Conservative MP who channelled expenses through a company run with his wife, are in the same position.

Only Ian Gibson, the Labour MP who stood down over his expenses during the parliament and caused a by-election, does not qualify for the parachute payment.

Under the new rules, which will be unveiled by Sir Christopher Kelly next week, the maximum amount that MPs will be able to claim is around £10,000, close to two months salary.

So far 114 MPs across all parties have said they will not stand at the next election. That figure is certain to rise as a number of MPs will decide just before the election is called that are retiring.

However, the system will not come into force until the election after next. It means MPs like Mr Morley and Mr Wilshire will still be in line for the big pay off.

Those MPs marking time before they stand down still accrue pension rights and then, on stepping down, are able to claim the resettlement grant, the first £30,000 of which is tax free.

According to the Green Book setting out Commons allowances, the grant is “to assist former Members with the costs of adjusting to non-parliamentary life”.

At the last election a total of 136 MPs left the Commons. It cost the taxpayer £5.3 million in pay-offs.

The resettlement grants are based on an MP’s age and the time they have served at Westminster. The minimum is more than £32,000, but many can claim much more. Douglas Hogg, the Conservative MP who claimed for cleaning his moat, will be eligible for £59,584.

A number of other perks are also going to be taken away from MPs including the £25-a-day allowance for food and subsistence.

The controversial £10,000-a-year communications allowance will also be scrapped. The allowance was condemned by some MPs for effectively being a “spin” budget for all MPs to promote themselves to voters.

Sir Christopher will also address the issue of MPs’ travel. MPs will only be able to claim for first class train fares in specific circumstances where it can be shown to represent value for money.

The current system of allocating travel passes to the spouses of MPs will also be subject to new limits.

After all there are still six months to the Election.

Angus

Angus Dei on all and sundry

AnglishLit

Angus Dei-NHS-THE OTHER SIDE

2 comments:

World said...

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World said...

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