|
To follow is an explanation of how the allowances system works and information of my expenses and allowances, as well as those of neighbouring MPs for comparative purposes
Staffing allowance
MPs are permitted to employ staff to support them in undertaking their parliamentary and constituency work.
Staff salaries are paid directly to staff by the House of Commons Department of Finance and Administration and MPs have no access to this money.
MPs can employ members of their family. However, if they do so, they must register the fact with the authorities.
If you are interested in finding out which MPs employ family members, click here:
http://www.publications.parliament.uk/pa/cm/cmregmem/090520/p2memi02.htm
The amount paid to my staff and those working for neighbouring MPs for 2007-2008 was as follows:
Edward Leigh: £95,530
Mr Leigh employs one family member - his wife Mary Leigh as Office Manager at a salary of £30,000 to £40,000.
Read an article on this issue by clicking on the link below:
http://www.independent.co.uk/news/uk/politics/sixty-tories-claim-16340000-each-to-employ-relatives-869721.html
Shona McIsaac: £91,091 (plus £5,190 for maternity cover)
I employ four people in the constituency office (two full-time and two part-time) and one full-time member of staff in Westminster.
I don't employ any members of my family.
I receive intern support from the University of Notre Dame.
I also offer work experience placement to young people in both the constituency office and Westminster office.
Austin Mitchell: £90, 218
No family members employed.
Ian Cawsey: £85,872 (plus £5,235 for long-term illness cover)
No family members employed.
There has been some discussion as to whether MPs actually need members of staff.
In my view, it would be impossible to provide a decent service for constituents without members of staff. My team are dedicated and hard-working. They go out of their way to assist people - as the number of thank you letters and cards testify.
Since I was first elected, the correspondence received is much higher now than it was 10 years ago and the problems being brought to my attention, far more complex.
A decade ago, email correspondence was unusual. Now, thousands of emails are received every week.
The use of the internet, emails and modern campaigning by charities, pressure groups and so on have vastly increase the amount of correspondence received. If I take the Post Office card account as example, more than 1,000 people contacted me about this.
Office running costs
The Incidental Expenses Provision (IEP) is the name given to the budget which is available to enable MPs to meet the cost of running an office. This allowance was previously called the Office Cost Allowance.
This budget is used to pay for office rent, rates, office phone and utility bills, stationery, etc. MPs can also claim for professional advice regarding the running of their office from this budget.
Once more it's important to point out that the money is not paid directly to MPs.
MPs forward bills to the House of Commons Department for Finance and Administration for payment from this budget. Alternatively, an MP can pay a bill and then make a claim to be reimbursed for the expenditure incurred. Authorised receipts must be produced and submitted with the claim form.
The largest single expense in any one year is my office rent rates, which goes to North East Lincolnshire council. The majority of the remaining invoices I submit are from Banner - the office supplies firm contracted to Parliament. While most of the Banner purchases comprise assorted stationery items, there are also regular purchases of Nescafe Gold Blend - for the staff, not me! There are also a lot of phone bills.
In 2006-2007, my Incidental Expenses Provision totalled £14,664 (the maximum available was £20,440) which placed me 562nd out of 645 MPs (where a rank of 1 is the most costly).
Office running costs of neighbouring northern Lincolnshire MPs for 2007-2008:
Ian Cawsey: £21,700
Ian has a large constituency straddling both Lincolnshire and Yorkshire. Therefore, he has an office in Brigg and one in Goole, which means his office costs are higher.
Edward Leigh: £16,314
Mr Leigh's office is at the same address as Gainsborough Conservative Association in Market Rasen.
Austin Mitchell: £15,452
Austin's office is based in his constituency home in Bargate, Grimsby.
Shona McIsaac: £7,749
Two offices in the Immingham Resource Centre rented from North East Lincolnshire Council.
The figure of £7,749 placed me 618th out of 645 MPs in relation to office running costs.
From 1 April 2009, the Incidental Expenses Provision has been renamed. It is now called Administrative and Office Expenditure (AOE).
Newspaper reports have commented on the fact that MPs have paid for accountants. MPs are not permitted to make any claims for accountants for their personal tax returns. However, MPs are permitted to claim for such advice in relation to doing the books for their office and staffing costs. Unlike most people and most businesses, MPs are not allowed to file their tax returns on line.
My office expenditure for 2008-2009 was as follows:
Citizens Advice Bureau £387.75
North East Lincs Council £3,213.00 (Rent, service charge and business rates for office space at the Immingham Resource Centre)
Banner Business Supplies £901.64
Dell Corporation £104.58
Banner Business Supplies £23.28
T Mobile £20.94
BT £260.97
Reimbursement to S McIsaac £317.87
Vodaphone £20.29
T Mobile £20.29 (the T Mobile and Vodaphone bills cover a) the costs of a palm top, and b) the Parliamentary pager service
Smart Office Systems £205.51
Banner Business Supplies £57.11
Banner Business Supplies £11.06
Staples £109.19
Dell n £105.75
Banner £17.93
T Mobile £20.50
Banner Business Supplies £15.67
Reimbursement to S McIsaac £198.97
T Mobile £19.98
Banner Business Supplies £18.63
Vodaphone £17
Reimbursememt to S McIsaac £438.45
T Mobile £9.99
Vodaphone £176.20
Telsolutions £117.50
Lark Insurance £315.00
Dell £105.75
CFL £199.00
Banner Business Supplies £18.96
T Mobile £46.94
Banner Business Supplies £646.87
Banner Business Supplies £30.28
Vodaphone £17
Dell £106.95
Telsolutions £115.50
T Mobile £16.28
Staples £110.32
Telsolutions £230.00
CFL £235
T Mobile £9.89
Reimbursement to S McIsaac £622.63
Reimbursement to S McIsaac £25.00 (adverrtisement in the Bartonian)
Vodaphone £17
T Mobile £9.78
Total: £9,342.50
Budget available: £22,735
Percent of budget used: 41.09 per cent
Centrally purchased stationery
MPs have access to a limited amount of House of Commons headed stationery without being charged, regardless of the number of constituents they have. The amounts below represent the value of that stationery. MPs have no access to this money. Any additional paper must be paid for from other allowances.
Ian Cawsey: £1,770
Austin Mitchell: £890
Shona McIsaac: £779
Edward Leigh: £224
Postage associated with the use of centrally purchased stationery
In addition to the stationery, MPs are provided a certain number of House of Commons post-paid envelopes. The amount below represents the value of those post-paid envelopes. Once again MPs do not receive this money - it is paid to the Royal Mail. Any additional postage must be paid for from other budgets.
Ian Cawsey: £4,191
Austin Mitchell: £2,722
Shona McIsaac: £1,915
Edward Leigh: £501
Centrally provided computer equipment
This is the value of computer equipment supplied to MPs by the House of Commons authorities. Again, MPs have no access to this figure - it simply represents the value of the computer equipment supplied. MPs must pay for all toner and parts not otherwise covered by warranty. If MPs wish to have more computers, then they must be purchased from other allowances. All parts and maintenance will have to be paid. Tax is paid on all additional purchases.
Edward Leigh: £1,447
Austin Mitchell: £1,261
Shona McIsaac: £1,219
Ian Cawsey: £1,219
Communications
A couple of years ago, what used to be referred to as the Office Costs Allowance was reformed and divided into two separate allowances - one for office running costs and the other covering communications. Previously, all communications expenditure was paid out of the Office Costs Allowance.
The communications budget pays for printing advice surgery cards and posters, annual reports, certain newsletter and letters, distribution, advertisements, communications equipment (eg, additional printers, etc), business cards, postage, additional paper and envelopes, etc.
Once more, MPs have no direct access to this money.
As with the budget to meet the costs of running an office, MPs can submit invoices to House of Commons authorities, so that suppliers are paid direct. However, if an MP pays a bill, they can be reimbursed for those costs after completing an official claim forms and providing certified receipts.
My communications spend was above the maximum allowance of £10,000 because I transferred money from Incidental Expenses to cover additional equipment purchase.
Shona McIsaac: £14,983
Ian Cawsey: £9,954
Edward Leigh: £6,270
Austin Mitchell: £5,562
Staff travel costs
As MPs have to work in both Westminster and their constituencies, all MPs have an allocation of 12 return trips a year between Westminster and the constituency for members of staff.
MPs have no access to this money. These travel costs are paid by the House of Commons.
Alternatively, the member of staff can pay for their travel and then be reimbursed for the expenditure.
In 2006-2007, the total cost of my five members of staff travelling between Westminster and London was £912 for the whole year.
My spend for 2007-2008 was £0.
Travel
Car
MPs can claim a mileage rate for travel between home and Westminster in a vehicle that is owned by the MP. They can also claim for travel in the constituency to carry out their duties. I came 446th out of 645 MPs - I restructured my diary a few years ago to reduce travel costs.
Austin Mitchell: £12,922
Ian Cawsey: £10,993
Edward Leigh: £8,158
Shona McIsaac: £5,943
Rail and air travel
These costs are associated with travelling by rail (including tube) or air.
I did not make any claims for rail travel in 2006-2007.
I have never claimed for air travel.
Other travel
The allowance for 'Other Travel' includes mileage undertaken by bicycle and the cost associated with travelling by bus, ferry, as well as the cost of season tickets.
I have made no claims made in 2006-7, although I do travel by bus between where I stay in London and Parliament. In fact, I do not claim any travel for when I am in London. Nor do I claim for any parking or congestion charge.
Since becoming an MP in 1997, I have claimed for one taxi journey (Immingham to Waltham).
European travel
MPs can claim for travel and subsistence costs for up to three trips per year to EU institutions, EU agencies, the national parliaments of EU member states, European Free Trade Association states, or candidate countries.
I have never been on any foreign trips since, so I have never used this allowance since being elected.
Outside earnings
MPs can do other work in addition to their work as an MP. However, it must be registered. New rules which commenced on 1 July 2009 require more transparent declaration regarding outside earnings.
Edward Leigh: £10,000-£15,000 (Pinnacle Insurance).
Edward Leigh also receives additional pay on top of his pay as an MP for being a committee chairman
Austin Mitchell: Up to £5,000 (House magazine)
Ian Cawsey: £0 - no other job
Shona McIsaac £0 - no other job.
Additional Costs Allowance
It is this allowance that has proven to be the most controversial.
What exactly is it?
The allowance is available to cover the additional housing and living costs to enable an MP carry out their parliamentary duties in Westminster.
When I became an MP in 1997, the House of Commons authorities informed me that it was normal practice to use the allowance to cover the accommodation and living costs in London. As I was told, the rules stated that the allowance was there to help an MP carry out 'Parliamentary duties' and not constituency work. It was explained that the allowance reflected the higher costs of living in London.
Therefore, I have only ever claimed for my accommodation and living costs when I am in London.
MPs must meet the costs of their constituency home themselves - which I do. I have never claimed for this.
When did all this begin?
The allowance was first introduced in the 1970s. However, it was in the 1980s, when Mrs Thatcher was PM that the seeds of the current debacle were sown.
At the time, the independent body that sets MPs' pay and allowances stated that the pay of MPs had fallen behind. A substantial pay rise was recommended to bring the pay to the same level as comparable public sector jobs. However, Mrs Thatcher refused to accept the recommendation. Instead, the rules on London housing and living costs were dramatically relaxed and the amount available increased. MPs were told that this was to compensate them for not getting the pay rise. So the Housing Allowance became part of the pay package.
When I was first elected, the advice I received from the House of Commons was that I could simply divide the total allowance by 12 and claim that amount each month!
I didn't.
I recorded and itemised the actual additional costs incurred by having to be in London to enable me to carry out my duties in Parliamentary.
In 2003, Michael Trend, the Conservative MP for Windsor, was found guilty of abusing the allowance by the Standards and Privileges Committee. This is a committee of back bench MPs from all parties. Mr Trend was ordered to repay £90,277. Apparently, he had been returning to Windsor each night while stating that a friend's house was his London home. He was never charged by the police.
Following this case, the rules relating to the allowance for staying in London were redrawn. Continuing concern about this allowance has lead to further redrafting of the rules.
In April 2009, the allowance was renamed the Personal Additional Accommodation Expenditure (PAAE). Once more the rules have been redrafted.
In 2007-2008, the claims for MPs here were:
Austin Mitchell: £23,073
Edward Leigh: £22,840
Elliot Morley: £19,140
Ian Cawsey: £18,050
Shona McIsaac: £15,404
My claim was one of the lower claims placing me below average for these costs - 431st out of 645 MPs.
In the previous year (2006-2007), my London living costs were £18,729.
Since becoming an MP, my London accommodation and living costs have largely comprised of mortgage, utility bills, water rates, repairs and maintenance.
I have not used the allowance when I have had to undertake expensive capital projects, such as a new roof and replacing windows.
I have never employed any cleaners, gardeners or housekeepers. I do all this work myself.
The furniture in the London property was nearly all second hand or given to me by friends (not MPs!). So if someone was getting a new sofa, they would give their old one to me.
After about a decade of using this furniture, much of it was falling to bits (or got infested by horrible blood-sucking bugs).
At one point, I was sleeping on the floor as I had no bed.
Therefore, I needed to replace the worn out (or infested) items. I used some of the living costs allowance to help me do this.
Mindful that the rules stated that, when buying furniture, MPs had to secure value for money and not be excessive - any purchases I made tended to be from Homebase, Argos, Tesco, etc.
As a headline in the Cleethorpes Chronicle stated about my allowance:
MP's expenses: John Lewis 'no', Argos 'yes'.
The furniture that I replaced has been the only major outlay I have claimed in more than a decade as MP. Should I continue to be an MP for the next decade, then I would not expect to replace these items.
Nonetheless, it is this allowance which has caused so much anger and resentment.
People have demanded to know why the taxpayer has to meet the bills for MPs having to be in London?
It's a good question.
I will give an analogy to try to explain. If my husband has to go abroad for his work, his company will pay the travel costs, the hotel costs and subsistence.
I have contacted the councils in the area, the health service and police and all have told me that they do pay for these types of costs if an employee is required to work away from their normal place of work. For example if an employee has to attend a conference in London or Brighton, the council would cover the costs of the travel and the hotel, as well as subsistence. It is not unusual, but a fairly standard practise.
I also contacted private sector employers and they told me that they would also pay these types of costs. If someone has to travel to Texas, then flights, accommodation and, once more, food bills would be either paid or the employee reimbursed.
House prices in our area are not as expensive as London - which is one of the most expensive cities in the world in which to live. Therefore to help people appreciate the costs involved, I contacted estate agents and searched the London Evening Standard regarding the costs involved in staying in London.
Here is what I found:
- The cheapest small flat to rent near Parliament was £480 per week for an unfurnished bedsit.
The cheapest one-bedroom flat to buy (and it was already under offer) was £450,000.
- An unmodernised two-bedroom flat near Westminster was £1,300,000.
I do not stay in central London which reduces the costs I incur in London.
I do not employ and cleaners or gardeners, housekeepers and the like. I do those chores myself - as most women do. I also carry out most of the repairs and maintenance myself (with thanks to B&Q and Homebase).
There are other costs associated with staying on London which I do not claim (which I could):
- Satellite TV subscription
- mobile phone bills
- broadband access for when I'm not in the Westminster or Immingham offices
- newspapers and periodicals
- all travel while in London
- parking
It's also important to point out that my home in Cleethorpes (which I adore and is much nicer than London) isn't paid for from public funds and never has been.
Also:
What I have never done...
I have never 'flipped' my homes.
I have never used public funds to increase the value of a property.
I have not carried out any major repairs on the public purse (roof, windows, etc).
I have never been on any taxpayer funded foreign trips or junkets since becoming an MP in 1997.
I have never taken an outside job in addition to that of being an MP since being elected in 1997.
I have never channelled allowances into a constituency political office.
I have never employed any member of my family.
I have never employed any member of another MP's family (referred to as 'wife swap' and 'babysitting').
I have never used House of Commons facilities for party political fundraising.
And I don't have any swimming pools, moats, helipads, paddocks, stables, crystal chandeliers, driveways, duck houses, servants' quarters or ride-on lawnmowers, so I have never claimed for them on the public purse!
|
Delicious
Digg
Reddit
Facebook
StumbleUpon