MPS in line for extra £8,800 redundancy if defeated

MPS could carry on getting paid for two months after losing their seats in a general election, under proposals by the Commons watchdog.

Defeated politicians should be given £8,800 each for the work they do when winding up their offices, the Independent Parliamentary Standards Authority (Ipsa) said yesterday.

If applied to last year’s general election, this would have cost taxpayers nearly £590,000.

The payout will be in addition to the redundancy package MPS already receive – typically about £1,500 per year in office. They can also claim expenses for two months after they lose their seat, including accommodation costs. In addition, MPS get a “winding-up budget” for their staff and office costs of £53,950, rising to £57,150 for London constituencies.

Ipsa proposed the changes after receiving complaints from MPS following last year’s snap election.

“Because of the unexpected nature of the election, they would only have had six weeks’ notice that losing their job was a possibility,” the watchdog said.

MPS currently receive a basic salary of £77,379 a year.

Those who lose their seats not only “find themselves abruptly without any income”, Ipsa said, but they would be “unable to begin any new employment” because they have to wind up their office for two months.

The watchdog noted the payoffs given to MPS when they step down had been dramatically curbed over recent years. As a result, many complained last year that “relatively low” redundancy payments were going to cause them “significant financial difficulty”.

In addition, Ipsa has proposed that payouts for relatives of MPS who die in the line of duty should double from twice their annual salary to four times.