Adam Afriyie, MP for Windsor, today criticised IPSA for failing to introduce a less costly MPs’ expenses scheme in the interests of taxpayers and constituents.
Following consultation, IPSA today published a revised scheme for the new financial year starting on 1st April 2011. The resolution is supported by the Prime Minister and says that the Government will make time for Parliament to act through legislation if IPSA fails to bring forward a better scheme.[1]
Commenting on IPSA’s new scheme, Mr Afriyie said:
“In times of austerity, IPSA is burning taxpayers’ money hand over fist – they must be stopped without delay for the sake of taxpayers and constituents
“IPSA’s Chairman has wasted the opportunity to put things right. He has done his staff, taxpayers and British democracy a great disservice by making only cosmetic changes when major cost-saving reform is clearly required
“It beggars belief that IPSA would introduce a special new payment for MPs with children which is unavailable to constituents, and at a time when child tax credit is being cut
“IPSA has obstinately refused suggestions from Parliament and the Prime Minister for a cheaper scheme that would give MPs’ time back to constituents and stop disadvantaging less well-off MPs and those with families
“They have ignored calls to replace the expensive system of personal expenses and allowances with a simple taxable payment that would save taxpayers millions a year and rule out abuse for good. It would also stop the special treatment of MPs, because MPs would be accountable to HMRC just like everybody else
“The Prime Minister is committed to seeing IPSA reformed. The expectation is that the Government will honour its commitment by making time for legislation in the next few weeks.”
Editor’s Notes:
1. The Resolution passed unanimously by the House of Commons on 2nd December 2010 calls on IPSA to introduce a simpler and less costly scheme and enjoys the full support of the Prime Minister, who said that “there needs to be a better system in place by April or there will be change”.
2. Adam Afriyie is the only MP never to have claimed the personal expenses or allowances.
3. Mr Afriyie submitted a letter to the IPSA public consultation which was co-signed by 100 MPs and supported by around 300: http://www.adamafriyie.org/AR%20-%20Ltr%20to%20Sir%20Ian%20Kennedy.html
4. IPSA’s revised scheme can be read at: http://www.ipsa-home.org.uk/docs/MP%20expenses%20scheme%2025%2003%2011.pdf
5. The problems with the new IPSA scheme:
a) It’s more expensive for taxpayers than the old scheme.
b) It maintains the special treatment of MPs (e.g. with new allowances for children beyond what others in society get, when even child tax credit is being cut).
6. If the Government is to adhere to the unanimous Resolution, as it has indicated, it will need to allow a Bill to pass to committee within the next few days: http://www.guardian.co.uk/politics/2010/dec/15/cameron-mps-expenses-ipsa
7. Mr Afriyie’s submission to the IPSA consultation featured on the frontpage of the Daily Telegraph on 16th February, 2011: http://www.telegraph.co.uk/news/newstopics/mps-expenses/8326649/MPs-threaten-to-rewrite-Commons-expense-rules-in-row-with-watchdog.html
8. Mr Afriyie has recently written two articles on the issue of MPs’ expenses, both published in the House Magazine: http://www.adamafriyie.org/AR%20-%20Parliament%20must%20pipe%20up.html; http://www.adamafriyie.org/AR%20-%20Learning%20from%20an%20expenses%20mistake.html
9. The Parliamentary Standards (Amendment) Bill – what does it do?
- Reduces the cost of MPs by about £4 million a year.
- Retains a strict regime of receipts for office and staff costs - so that the public can see exactly how their money is spent.
- Simplifies the way in which payments are made by introducing a completely transparent taxable Members’ Allowance – it would be simple and cheap to administer and impossible to abuse.
- Treats MPs exactly the same as any person with self-employed income – they must deal with the HMRC for legitimate business expenses.
- Asks IPSA to set the rate for the Members Allowance for an entire Parliament.
- Maintains the independence of the IPSA, but forces it to fulfil its original mandate to be cost-effective and efficient.
- The Bill is offered as a cross-party platform for change, not a final destination and is open to amendment in committee.
- Puts to bed an issue that’s been plaguing Parliament for 50 years.
10. Mr Afriyie’s official website: http://www.adamafriyie.org/
Contact Details: Telephone: 020 7219 2005 Email: adam.afriyie.mp@parliament.uk
ENDS