The rules, before and after 2009
UNTIL 2010 MPs got up to £24,000 a year towards buying, equipping and renovating second homes.
All but a handful of “inner London” MPs were allowed to claim the costs. Outer London MPs could choose a smaller supplement.
Mortgage interest, but not capital repayment, was included. Utilities, council tax, cleaning and gardening covered. No receipts for items less than £250. MPs profited selling up.
They could also employ family at taxpayer expense – with those who lived together each able to claim the £24,000. There was first-class rail travel from constituencies, for all the family. MPs standing down or losing seats got a resettlement grant of up to 100% of salary. Some was tax free.
After the expenses scandal of 2009 the system was overhauled. Under “transitional” arrangements, MPs could continue to claim mortgage interest payments until 2012 but were asked to repay the amount their property rose in value. Taxpayer help with mortgage bills ended. MPs instead could claim up to £22,760 a year to rent a second home. Extra help for MPs with dependent children.
All those with constituencies within 20 miles – or 60 minutes – of Central London now get no rent subsidies. MPs can still employ one relative. Rail journeys from constituency to Parliament are paid, but first-class only if cheaper than standard.
No resettlement grants for MPs who quit, those who lose seats still get this, capped at six months’ salary.
MPs got a 10% payrise in 2015 to £79,468 a year, up 21% since 2010.