FINANCE &
ADMINISTRATION
HOUSE OF COMMONS
DEPARTMENT OF FINANCE AND ADMINISTRATION - JUNE 2003
WEB VERSION WITH CORRECTIONS: UPDATED DECEMBER 2003
The Green Book
Parliamentary Salaries,
Allowances and Pensions
Speaker’s Introduction
I am pleased to introduce this new version of the
Green Book, which incorporates changes made to
the allowances since April 2002.
Its principal aim is to set out in clear terms to
Members the information they need on pay,
allowances, pensions and responsibilities for
employees. Further information on the services
provided to Members by the Department of
Finance and Administration (and other House
Departments) can be found in the Members’
Handbook.
The Green Book does not publish financial limits
on the salary and allowances for Members.
This information is available from the ‘Quick
Guide’ which provides up to the minute details on
these areas as well as useful contact numbers for
the Department. The ‘Quick Guide’ is updated
each April when salary and allowances are
increased. Both the Green Book and the Quick
Guide are available on the Intranet.
Members themselves are responsible for ensuring
that their use of allowances is above reproach.
They should seek advice in cases of doubt and
read the Green Book with care. The Finance and
Administration Department is there to relieve
Members of the bulk of the day to day
administration of Parliamentary allowances whilst
helping Members to provide the necessary
accountability.
I do hope that Members will find this new version
of the Green Book to be a helpful and useful
source of advice.
Speaker
Contents
Introduction
2
Allowances 3
1
Members’ Salaries
4
P11D/P9D
5
2
Pensions
6
Members
6
Staff
7
3
Additional Costs Allowance (ACA)
8
4
London Supplement
12
5
Incidental Expenses Provision (IEP)
13
6
Staffing Allowance
18
7
Travel
21
General
21
Mode of travel
22
Warrants
22
Standard travel
23
Constituency travel
23
Extended travel
24
European travel
24
Members’ spouse & children
25
Members’ staff
25
8
Short Money
26
9
Members who leave the House
28
10 Redundancy for Members’ Staff
& Other Employment Matters
31
11 Dissolution Arrangements
33
12 Computer Equipment,
36
Help For Members With Disabilities
& Security Measures
1
Introduction
The Green Book aims to set out clearly what
Andrew
allowances and expenses you are entitled to claim,
Walker
how to make your claim, and what supporting
information you should provide. When you make a
claim you are responsible for ensuring that your
expenditure is wholly, exclusively and necessarily
incurred on Parliamentary duties, and that it meets
the requirements for that particular allowance.
My Department helps you to do that by setting out
the rules, subject to Mr Speaker’s approval, and by
checking your claims for obvious errors. We also offer
you advice which you can obtain via the help numbers
displayed in each section, or by calling at the
Members’ Advice Centre (MAC).
The Personnel Advice Service (PAS) for members
provides up-to-date information and guidance on
Archie
personnel and employment issues.
Cameron
Within the Department, the Operations Directorate
(formerly known as the Fees Office1) led by Archie
Cameron, is responsible for the payment of salary,
pensions and allowances to Members.
The Directorate acts as an agent for Members
and makes payments on their behalf to staff and
suppliers. We also pay select committee and
international parliamentary delegation expenses,
as well as telephone charges for calls made on
the Parliamentary Estate.
We also provide an Occupational, Health, Safety
and Welfare Service (OHSWS) for Members.
You can find out further information about this in
the Members’ Handbook which complements the
Green Book.
The Department aims to provide high quality,
professional services for Members and their staff.
I should appreciate feedback on our services, and
any suggestions for improvement.
Andrew Walker
Director of Finance & Administration
1
The Fees Office became known by this name
because originally it collected the fees payable
by promoters of private bills. This role is now
carried out by the Private Bill office.
2
Introduction
What’s new in this edition?
Various travel entitlements, which include:
Major changes include new guidelines on claiming the
❖
Warrants or reimbursement for free travel whilst
additional costs allowance and the incidental
on Parliamentary business in the UK
expenses provision, as well as information about
❖
Season tickets in certain circumstances
changes to pension arrangements for Members and
❖
Motor Mileage Allowance
their staff.
❖
Bicycle Allowance
What are the main entitlements for Members?
❖
Up to 30 designated single journeys each
calendar year for the Member’s spouse and
A Salary and Pension
children
Details are at sections 1 and 2.
❖
Up to 18 designated single journeys each
calendar year shared between the Member’s
An
Additional Costs Allowance to reimburse certain
staff
Members for additional costs incurred when staying
❖
Up to 3 journeys a year to certain European
overnight away from their main home whilst
destinations.
performing Parliamentary duties.
See section 7 for further information.
See section 3 for details.
Centrally provided computer equipment which may
be borrowed free of charge, for Parliamentary use only.
A
London Supplement, which Members receive with
their salary (in some circumstances).
In addition, Members can call on:
❖
Section 4 gives further information.
Additional equipment, facilities or help if they
have a disability
An
Incidental Expenses Provision to meet
❖
Additional contributions to security costs.
the costs of:
Further details are at section 12.
❖
Accommodation for office or surgery use
❖
Equipment and supplies for the office or surgery
❖
Work commissioned and other services
❖
Certain travel and communications.
See section 5 for details.
A
Staffing Allowance to pay up to the equivalent of
3 full time staff. The Department also offers a
complementary Personnel and Advice Service (PAS).
See section 6 for details.
3
Members’ Salaries,
Section 1
Information For Members
FREQUENTLY ASKED QUESTIONS
When will I get paid?
Everyone is paid on the last working day of the month.
When do I have to notify the Department of any
By the 15th day of the month.
changes affecting the payment of my salary?
When do I receive my P60?
By the end of May. Please keep it safe as we are not
allowed to issue duplicate copies.
When do I receive my P11D, to enable me to
By 6th July, the Inland Revenue statutory deadline.
complete my tax return?
Does the Department pay my
No, individual Government Departments
Ministerial salary?
will pay these.
When I cease to be a Minister am I entitled to
Yes, if you are under the age of 65 you are entitled
severance pay?
to three months’ Ministerial salary, provided you are
not appointed to another Ministerial post within
three weeks.
What arrangements are made for salaries during
Members and their staff are paid up to and including
Dissolution?
the day of the general election and continue
uninterrupted if the Member retains their seat.
4
Members’ Salaries
Section 1
1.1.1.
1.4.2.
The Department deals with Members’ pay, and the
The Tax office that deals with you and your
pay and expenses of Members’ staff. All salaries are
employees is:
paid monthly in arrears, on the last working day of
Public Department 1
every month.
Ty Glas Road
Llanishen
1.1.2.
Cardiff CF14 5XZ
If you change your address or your bank account
please ensure that details reach us by the 15th of the
1.5.1. Pay and Tax Information
month in which they are to be effective.
Everyone paid through the Department will receive a
P60 by the end of May, if they are still in employment
1.2.1. Members’ payroll
at 5th April. This contains statutory information
Members’ salaries are governed by Resolutions of the
relating to payments and deductions.
House, and are increased annually on 1st April in line
with Senior Civil Service pay. The Department also
1.5.2.
pays Parliamentary Office Holders, the Chairman of
The Department will also send you your form P11D
Ways and Means and both Deputies. The employing
that sets out the taxable expenses and benefits you
Department of State pays Ministerial salaries.
have received. Employees paid via the Department
will also receive a P11D, except for those earning less
1.2.2.
than £8,500 p.a. who will receive a P9D. These are
The Department cannot pay a salary until a new
normally sent out at the end of June or early July,
Member takes the oath or affirms.
to meet the Inland Revenue deadline of 6th July.
The Department automatically sends copies to the
1.2.3.
Tax Office.
Contributions are automatically deducted from salary
in respect of the Parliamentary Contributory Pension
1.5.3.
Scheme and the Members’ Fund.
Any claims that are paid after the P11D has been sent
to you will have to be reported to the Inland Revenue
1.3.1. London Supplement
independently by you.
Further details are available at section 4.
1.4.1. Tax and National Insurance
Income Tax and National Insurance contributions are
deducted from salary payments.
5
Pensions
Section 2
This is a brief summary of the main points. Please contact the Pensions Unit for further copies of
the relevant booklet(s), application forms etc, and any other information you may require.
Am I in a pension scheme?
Yes. Once you have sworn the Oath of Allegiance,
you are a member of the Parliamentary Contributory
Pension Fund (PCPF) from the day after you were
elected.
The PCPF has a supplementary section for paid
Ministers and Office Holders. Details will be supplied
at the time they become relevant.
Do I have to be in the PCPF?
No, you may opt out at any time provided you give at
least one month’s notice, and sign the special form
available from the Pensions Unit to confirm that you
understand the valuable benefits you are giving up by
choosing not to be in the PCPF.
How much does it cost me?
You can choose to make contributions of either 6% or
9% of gross pay (see below). Once you have made
your choice, you cannot later change your mind, even
if you have a break in service.
The effect on your take home pay is much less than
the 6% or 9% contribution, as you benefit from tax
relief (currently 40%), and also pay a lower rate of
National Insurance.
Why is my National Insurance contribution
While you are a member of the PCPF, you continue to
reduced?
build up rights to the Basic State Pension, but not to
the Additional State Pension. (This used to be the
State Earnings Related Pension, and is now the State
Second Pension). The PCPF is allowed to “contract
out” because it provides benefits which meet - and
indeed substantially exceed - certain minimum criteria.
What are the benefits?
If you pay 6% contributions, you normally build up
benefits at 1/50th of your final salary for each year
you are contributing to the PCPF. If you pay 9%, you
normally build up benefits at 1/40th.
Why “normally” 1/40th or 1/50th - what are the
The rules of the PCPF place limits on maximum
exceptions?
pension you can build up. If you have “retained
benefits” (pension benefits from other sources, such
as a previous company scheme or personal
pension/retirement annuity contract, whether or not
they have come into payment) at the time you join the
PCPF, these may restrict your PCPF benefits.
For your own protection, it is vital that you ask the
Pensions Unit for more information, and then
discuss this with your own professional advisers.
Can I top up these benefits?
You may be able to do so by paying extra personal
contributions. Limits apply both to the amounts you
can contribute and to the benefits you can build up.
Please ask the Pensions Unit for more information.
6
Pensions
Section 2
At what age can I draw my pension?
You cannot draw your pension until you cease to be
an MP. The normal pension age under the PCPF is
65. Early retirement (including on grounds of ill health)
is possible, as is late retirement. Again, please ask
the Pensions Unit for more information.
What benefits are payable if I die while I am a
A death gratuity of 4 x basic salary may be payable at
serving MP?
the Trustees’ discretion (unless you have opted out of
the PCPF). Please complete a Nomination Form to
let the Trustees know to whom you would like any
such benefit to be paid.
Spouses and dependent children are normally eligible
for dependents’ pensions.
Can I continue to contribute to my existing
Please check with your personal pension provider.
personal pension?
It may be possible where you either have a source of
earned income from outside the House; or if your P60
earnings (from all employments, if you had more than
one) in 2000/01, 2001/02 or 2002/03 were
under £30,000.
What about pensions for my employees?
Employees who are paid out of the staffing allowance
are normally entitled to have a payment equal to 10%
of salary made to the Portcullis Pension Plan.
The Portcullis Pension Plan is a group Stakeholder
arrangement. (A Stakeholder is a special form of
personal pension, with lower charges and more
flexible contract terms than older style personal
pensions). The 10% can be paid to one of the
nominated providers (currently AXA and Norwich
Union) or split between them in the proportions
requested by the employee concerned.
How do I make sure my employees get their full
New employees are sent full details of the Portcullis
pension entitlement?
Pension Plan with their contract of employment.
7
Additional Costs Allowance (ACA)*
Section 3
FREQUENTLY ASKED QUESTIONS
What can I claim?
Only those additional costs wholly, exclusively and
necessarily incurred to enable you to stay overnight
away from your only or main residence either at
Westminster or in the constituency. If you receive the
London Supplement you may not be eligible.
What supporting documents do I have to provide?
We ask for receipts for items of expenditure of
£250 or more (except for food), and for all hotel bills.
If you are claiming rental or mortgage interest we ask
for a copy of your rental agreement or your latest
mortgage interest statement.
Section 3.6 explains the requirements more fully.
Can you pay my rates or rent direct?
No, you must pay them yourself and claim
reimbursement from us.
Can I transfer costs into the next year’s allowance
No, we can only reimburse expenses for the financial
budget?
year in which they occurred.
What do I have to do if I move home?
Please inform us promptly. You may need to change
the nomination of your main home.
*
Sometimes referred to as the Living Away from
Home Allowance, Overnight Allowance,
Accommodation Allowance
8
Additional Costs Allowance (ACA)
Section 3
3.1.1. Scope of allowance
3.4.1. Avoiding duplicate claims
The additional costs allowance (ACA) reimburses
Please inform the Department if you claim ACA for
Members of Parliament for expenses wholly,
a second home and you wish to claim against the
exclusively and necessarily incurred when staying
incidental expenses provision for any of the costs
overnight away from their main residence (referred to
associated with an office on these premises
below as their main home) for the purpose of
(eg heating, lighting, decoration, furniture, telephones
performing Parliamentary duties. This excludes
etc). You must make sure that you do not claim twice
expenses that have been incurred for purely
for any element of these costs.
personal or political purposes.
3.4.2.
Eligibility
You must not claim ACA for more than one location
3.2.1. You can claim ACA if:
at any time.
a
You have stayed overnight away from your only
or main home, and
3.4.3.
b
This was for the purpose of performing your
Please inform the Department if you are claiming
Parliamentary duties, and
ACA in respect of a property which you share with
another Member.
c
You have necessarily incurred additional costs
in so doing, and
3.5.1. Subletting, lodgers, paying guests etc
d
You represent a constituency in outer London
You are strongly advised to avoid subletting or renting
or outside London.
out any part of a property for which you claim the
Note: You cannot claim ACA if you represent an inner
additional costs allowance. However, if you have
London constituency.1 Instead you will automatically
such an arrangement you should send a copy of
receive the London supplement with your salary.
the agreement with your tenant or lodger to the
If you represent an outer London constituency1 you
Department. We will reduce the ceiling on your
can choose between receiving the London
claims for that year by the rental income for that year.
supplement and ACA.
3.6.1. Documentation needed
What you can claim if you are eligible for the
Please supply the following:
allowance
❖
If you have a mortgage, a copy of your last
3.3.1. Location of overnight stays
statement of interest - and future statements at
If your main home is in the constituency, you can
annual intervals. If this does not demonstrate that
claim ACA for overnight stays in London - or in
the mortgage is in your name, further evidence
another part of the constituency if reasonably
may be required
necessary in view of the distance from your only
❖
If you lease a property, a copy of your lease
or main home.
agreement
❖
If you sublet or rent out a portion of your property,
If your main home is in London you can claim for
a copy of the relevant agreement with your tenant
overnight stays in the constituency.
or lodger
If your main home is neither in London nor the
❖
If you stay in a hotel, all hotel receipts
constituency you can choose in which of these areas
(including those under £250)
to claim ACA.
❖
Any documentation relating to changes to these
arrangements
If you are a Minister or paid office holder (see list in
❖
Invoices/receipts for all items of expenditure of
section 4 on the London supplement), you can claim
£250 or more (except for food.)
ACA only for overnight stays in the constituency.
See section 3.9.1. for definition of your main home.
1
See section 4 on the London Supplement, which lists
inner and outer London constituencies.
9
Additional Costs Allowance (ACA)
Section 3
3.6.2.
3.9.1. Definitions
You must supply the address of your second home or
Main home
hotel every time you complete a claim form.
When you enter Parliament we will ask you to give the
address of your main home for the purposes of ACA
3.7.1. Making a claim
and travel entitlements. It is your responsibility to tell
Please submit your claim monthly or quarterly using
us if this changes. This will remain your main home
the ACA claim form. We cannot pay suppliers direct -
unless you tell us otherwise.
you can only be reimbursed for expenses which you
If you are a Minister or office holder (see definition in
have already paid.
section 4 on the London Supplement) then your
main
home is deemed to be in London. Unless you are
3.7.2.
provided with an official residence, you will receive
If you wish to claim a fixed sum per month in order to
London supplement with your salary, and you may be
cover council tax, mortgage interest or rental costs,
eligible to claim ACA in the constituency.
you may submit a statement of expected expenditure
For other Members, the location of your main home
at the beginning of the allowance year, along with a
will normally be a matter of fact. If you have more
copy of your latest council tax statement, mortgage
than one home, your
main home will normally be the
interest statement or rental agreement as appropriate.
one where you spend more nights than any other.
Each month we will pay you a fixed sum, which will
If there is any doubt about which is your main home,
not exceed 1/12 of the annual allowance. You must
please consult the Department of Finance and
then submit a statement of actual spend at the end of
Administration.
the year, together with documentation (as listed in
paragraph 3.6.1.) This will mean that you do not have
3.10.1. Changes to your living arrangements
to submit monthly claims. However, this arrangement
If you change the location of your home or cease to
is conditional on your providing the required
be a Minister please let us know promptly, as it may
documentary evidence at the end of the year.
affect your ACA claim. For example, if your
constituency is outside London and you move your
You cannot claim a fixed sum per month for items
main home from the constituency to London, this will
other than council tax, mortgage interest or rental
mean that you can no longer claim ACA in London.
costs.
3.8.1. Allowable expenditure
You should avoid purchases which could be seen
as extravagant or luxurious.
3.8.2.
Subject to paragraphs 3.1.1. to 3.10.1. you can claim
reimbursement for the expenses listed provided that
they are wholly, exclusively and necessarily incurred in
the course of your Parliamentary duties.
10
Additional Costs Allowance (ACA)
Section 3
3.11.1. Examples of expenditure allowable
3.12.1. The following expenditure
under additional costs allowance
is not allowable:
Rent - on one additional home in either London or
Living costs for anyone other than yourself;
the constituency, or
q
repayments of the capital element of
your mortgage
Mortgage costs - for one additional home in
q
interest foregone or notional interest on loans
either London or the constituency. This is limited
q
payments toward endowment policies &
to the interest paid on repayment or endowment
life insurance premiums
mortgages, and legal and other costs associated
with obtaining that home (eg stamp duty, valuation
q
interest on any additional mortgages, advances
fees, conveyance, land searches, removal
or loans secured on the same property
expenses), or
q
rental or mortgage costs for any part of your
property occupied by a lodger, paying guest
Hotel expenses - in either London or the
etc, unless this is offset against your claim
constituency. (This may include overnight
The costs of leasing accommodation
accommodation and food but no alcohol)
from yourself.
Capital additions to the home
Other food - reasonable additional costs while you
(ie improvements which add to the value of your
are away from your main home
property.)
Service charges
q
furnishings or fittings which are antique, luxury
or premium grade
Utilities
Entertainment or hospitality
❖ heat
Travel
❖ light
(These costs should be claimed in the usual way)
❖ water.
Congestion charges
Any expenses incurred during the dissolution
Council tax
of Parliament
Telecommunication charges
If you are unsure about whether an expense may
Furnishings
be met from the allowance please contact the
❖ white goods
help numbers for advice.
❖ electrical equipment
❖ other furnishings.
Maintenance & service agreements
❖ necessary non-capital repairs
(ie repairs to make good dilapidations)
❖ decoration.
Cleaning
Insurance
❖ buildings
❖ contents.
Basic security measures
❖ door/window locks
❖ intruder alarms
❖ external security lighting.
Other
❖ TV licence, parking permit.
11
London Supplement
Section 4
4.1.1. Scope of the London Supplement
The London Supplement is payable to Members who represent certain constituencies in London. It is
automatically paid to these Members with their salary and is subject to income tax and national insurance.
4.2.1. Eligibility
You will automatically receive the London Supplement if:
a
You represent an inner London constituency.1
b
You are a Minister or paid office holder2 (unless you are provided with an official residence)
If you represent an outer London constituency3 you must choose between the London Supplement or the
Additional Costs Allowance. (See section 3 for details on this allowance.)
1. Inner London Constituencies
Battersea
Islington North
Bethnal Green & Bow
Islington South & Finsbury
Camberwell & Peckham
Kensington & Chelsea
Cities of London & Westminster
Lewisham Deptford
Deptford
Lewisham East
Dulwich & West Norwood
Lewisham West
Eltham
North Southwark & Bermondsey
Greenwich & Woolwich
Poplar & Canning Town
Hackney North & Stoke Newington
Putney
Hackney South & Shoreditch
Regent’s Park & Kensington North
Hammersmith & Fulham
Streatham
Hampstead & Highgate
Tooting
Holborn & St Pancras
Vauxhall
2. Paid Office Holders
Chairman of Ways & Means
Chief Whip
Deputy Chairman of Ways & Means
Deputy Chief Whip
Leader of the Opposition
Assistant Chief Whip, as designated
3. Outer London Constituencies
Barking
Harrow East
Beckenham
Harrow West
Bexleyheath & Crayford
Hayes & Harlington
Brent East
Hendon
Brent North
Hornchurch
Brent South
Hornsey & Wood Green
Brentford & Isleworth
Ilford North
Bromley & Chislehurst
Ilford South
Carshalton & Wallington
Kingston & Surbiton
Chingford & Woodford Green
Leyton & Wanstead
Chipping Barnet
Mitcham & Morden
Croydon Central
Old Bexley & Sidcup
Croydon North
Orpington
Croydon South
Richmond Park
Dagenham
Romford
Ealing North
Ruislip Northwood
Ealing Southall
Sutton & Cheam
Ealing, Acton & Shepherd’s Bush
Tottenham
East Ham
Twickenham
Edmonton
Upminster
Enfield North
Uxbridge
Enfield, Southgate
Walthamstow
Erith & Thamesmead
West Ham
Finchley & Golders Green
Wimbledon
Feltham & Heston
12
Incidental Expenses Provision (IEP)
Section 5
FREQUENTLY ASKED QUESTIONS
What can I use the IEP for?
You can use it to pay for:
q
Office and surgery accommodation
q
Equipment and supplies for the office and/or
surgery
q
Work commissioned and bought in services
q
Communications and travel
q
Certain staff related costs. (In order to meet these,
you must transfer funds into the staffing allowance)
Please see the detailed guidance in section 5.13.
How do I claim?
There are three main ways to claim:
q
You can meet the bill yourself and claim the sum
back. Use a Members’ Reimbursement form (C1).
(You can also use a Direct Payment to Staff form
(C3) to reimburse an employee who has purchased
supplies for you)
q
We can pay the supplier direct. Use a Direct
Payment to Third Parties form (C2) and attach a
copy of the invoice
q
You can set up a regular payment arrangement.
Use a Periodic Payments form (B), and attach a
copy of your contract with the supplier.
How long does it take for payment to be made?
We aim to pay invoices within 7 working days of an
invoice reaching us. Please submit invoices promptly.
What statements will I get?
The Department will send you a monthly statement
showing actual expenditure to date and known
projected commitments (periodic payments) to
31st March.
13
Incidental Expenses Provision (IEP)
Section 5
5.1.1. Scope of the allowance
5.5.1. Tax implications
The incidental expenses provision (IEP) is available
The IEP is taxable and must be included in your tax
to meet costs incurred on Members’ Parliamentary
return, but expenses which the Inland Revenue
duties. It cannot be used to meet personal costs,
accepts as wholly, exclusively and necessarily incurred
or the costs of party political activities or campaigning.
in the performance of your Parliamentary duties are
The paragraphs which follow outline the main areas
eligible for tax relief.
of expenditure which we recognise as incurred in
supporting these duties, but it is each Member’s
5.5.2.
responsibility to ensure that all expenditure funded by
Some of the items allowable under the incidental
the IEP is wholly, exclusively and necessarily incurred
expenses provision may nevertheless give rise to a tax
on Parliamentary duties.
charge. For information about tax implications see the
booklet ‘MPs, Ministers and Tax’, obtainable from the
5.2.1. Eligibility
Department.
It is open to all Members of Parliament to apply for
the IEP.
5.6.1. Transfers out of the IEP
You may choose to transfer money from the IEP to the
5.3.1. Allowable expenditure
staffing allowance at any point in the allowances year.
The IEP may be used to meet the following expenses:
You may not however transfer money out of the
❖
Accommodation for office or surgery use -
staffing allowance to the IEP at any time.
or for occasional meetings;
❖
Equipment and supplies for the office or surgery.
5.7.1. Annual adjustment
❖
Work commissioned and other services.
The IEP will be adjusted annually in line with the
❖
Certain travel and communications.
movement in the Retail Prices Index. Each April,
the Department will announce the increase in IEP
In addition, you may transfer money from the IEP to
for the year ahead.
the staffing allowance to meet staffing costs.
5.8.1. At the end of the allowances year
5.3.2.
If part of the IEP remains unspent at the end of the
Section 5.13. lists examples of allowable and
allowances year, then - providing the spend was
non-allowable expenditure under these headings.
incurred during that year - claims may be made
Even if an item is listed in the category of allowable
against it for 2 months ie until end May.
expenditure, it is only allowable if the spend is wholly,
exclusively and necessarily incurred on Parliamentary
5.9.1. Avoidance of overspends
duties. For further guidance please contact the help
numbers above.
We can only process claims whilst there are sufficient
funds remaining in the IEP to cover these costs.
5.4.1. Proportion of the allowance which may be
If you exhaust the IEP the Department of Finance and
claimed during the year
Administration will not honour further commitments.
The allowances year runs from 1 April to 31 March.
5.9.2.
Subject to paragraph 5.4.2., there is no ceiling on
the proportion of this allowance which you may
You must not top up the IEP with funds from
draw down at any point in the year.
elsewhere. If you have exhausted the IEP it will be
your responsibility to meet any bills due from your own
5.4.2.
resources. The Department will not process these.
If you enter or leave Parliament part way through the
5.10.1. Verifiable expenditure
allowances year your entitlement will be calculated on
a quarterly basis. For example, if you leave in July
Evidence in the form of invoices or receipts must be
(ie during the second quarter) you will be entitled to
provided for all items of expenditure of £250.00
two quarters’ worth of the IEP. If you have spent
or more.
more than this you will be asked to repay the excess.
14
Incidental Expenses Provision (IEP)
Section 5
5.11.1. Spend which may be met from the
Other issues
incidental expenses provision
The following arrangements require
Pages 17-18 give examples of expenditure which are
particular care:
allowable, provided that they are incurred wholly,
5.12.3. Contracts for staff, services etc in
exclusively and necessarily on Parliamentary duties.
combination with accommodation
There are also examples of expenditure which is not
You must negotiate a separate contract for
allowable. If in doubt please consult the help numbers
accommodation and another one for services
given at the top of this page.
(eg staffing, telephony, use of photocopiers etc).
Any agreement for staffing facilities and/or services,
Rules on the arrangements for Members’
and the charges, must be set out in writing separately
constituency Offices
from any agreement for accommodation.
Charges must be for actual, not nominal, services,
5.12.1. Principles
and the service charges must accurately reflect the
You are advised to ensure that arrangements for your
levels of service provided. You must lodge a copy of
office and surgery premises are above reproach and
the agreement with the Department and ensure that
that there can be no grounds for a suggestion of
any subsequent changes are notified in writing
misuse of public money.
immediately to the Department.
You must avoid any arrangement which may give rise
5.12.4. Sharing arrangements between Members,
to an accusation that you - or someone close to you -
and sharing with Members of Devolved Bodies
is obtaining an element of profit from public funds;
and Members of the European Parliament
or that public money is being diverted for the benefit
Secure separate billing arrangements wherever
of a political organisation.
possible. Where separate billing is not feasible a
copy of the agreement setting out how the costs
5.12.2. Propriety
will be divided should be lodged with the Department.
The allowances must not be used to meet the costs
If one Member agrees to meet the costs in full initially,
of leasing accommodation from:
and to recover from the other parties to the
arrangements, the agreement to do this must be
❖
Yourself (But see paragraph 5.12.7. on
lodged with the Department. The sums recovered
using an office in your home)
must be remitted to the Department for credit to the
❖
A close business associate, or any organisation
incidental expenses provision.
in which you - or a partner or family member -
have an interest
5.12.5. Sublets
❖
A partner or family member (which includes
In view of the practical difficulties which may arise,
relatives by blood and by marriage.)
we strongly advise against subletting accommodation
which you lease and pay for out of the allowances.
Exercise particular care if the accommodation is
If you have already sublet part of your
leased from a political party or a constituency
accommodation, you are strongly advised to consider
association. You must ask an independent valuer to
❖
Converting to a shared tenancy, or
assess the property in order to ensure that it is being
❖
Terminating the lease and finding other premises.
rented at no more than the market rate. See also
paragraph 5.12.3. on agreements for accommodation
and services in combination.
If this is not practicable and the sublet continues
you should
You should seek advice from the Registrar of
Members’ Interests if the premises are provided
❖
Lodge a copy of the lease with the Department
rent free or at a rental below market rates.
and update it as required;
❖
Obtain a valuation of the rental from an
independent valuer. You should ensure that you
are charging the market rate;
❖
Deduct the income from the sublet(s) from the
total rental charge and claim the net amount from
your IEP, and
❖
Ensure that full and proper accounts are kept of
all relevant transactions.
15
Incidental Expenses Provision (IEP)
Section 5
5.12.6. Documentation required
You must lodge a copy of the following with the
5.13.1. Examples of expenditure allowable
Department of Finance and Administration
under the incidental expenses provision
❖
A copy of your lease
Office and surgery accommodation
❖
A copy of a recent independent valuation
NB: You are now required to lodge copies of all
(required only if you lease from a political
office leases with the Department of Finance and
organisation or if you sublet part of the premises)
Administration, keep them updated and to comply
fully with the rules issued in January 2002 on
❖
A copy of any agreement for cost sharing
Members’ offices; detailed on page 16.
(required only if you share with another Member,
with a Member of a devolved body or a MEP)
Allowable expenditure:
❖
A copy of any agreement for services with your
constituency association or other party political
❖ Rental, non-capital repairs and alterations,
organisation.
surveyors’ and lawyers’ fees
❖ Hiring facilities for surgeries or meetings
You must also inform the Department of any
❖ Payments to utilities: rates, water, gas,
alterations to the terms of these.
electricity
❖ Non-capital measures to ensure security,
5.12.7. Homes used as offices
better health and safety or accessibility for
You may use as an office for your Parliamentary duties
the disabled
any part of your home, or of any other building which
❖ Additional costs of using part of the home as
you lease or own. You may claim for any additional
an office - provided this is set aside as an office.
costs incurred (eg extra telephone lines, heat, light)
If you claim ACA for this home you must take
but not leasing or mortgage costs.
particular care to ensure that you do not claim
twice for the same expenses.
5.12.8. Occasional use of office premises
by others
You may charge for occasional use of your premises
Expenditure not allowable:
by others. (This must not exceed 20 days per year.)
❖ Buying accommodation or vehicles
The charge should be set at a level which reflects a
proportion of the leasing costs and the cost of any
❖ Rental or mortgage costs for the
services used. You should ensure that full and proper
Member’s home
accounts are kept of all relevant transactions.
❖ Capital repairs and alterations (But certain
security measures may be permissible.)
5.12.9. Information required by the
❖ Security for the Member’s home. (However, the
Inland Revenue
allowances may be used for additional security
You should note in your tax return any income derived
measures limited to any part of a home which is
from letting or sharing your office, and for occasional
used as an office.)
use of the premises by others etc.
16
Incidental Expenses Provision (IEP)
Section 5
Equipment and supplies for the office
Work commissioned and bought in services
and/or surgery
Note: With the exception of costs associated with
publications and websites, the costs listed below
Allowable expenditure:
may also be met from the staffing allowance,
❖ Purchase or lease of photocopiers, faxes,
provided that in any given year the costs of work
scanners, phones and other office equipment,
commissioned do not exceed 25% of that budget.
including computers
❖ Purchase of office furniture
Allowable expenditure:
❖ Purchase of stationery and consumables
❖ Professional advice eg from accountants,
❖ Purchase of hardware and software.
valuers or lawyers
❖ Cleaning, janitorial or reception services
❖ Maintenance services for hardware, software
Expenditure not allowable:
and equipment
❖ Hospitality and entertainment
❖ Interpreting and translation services
❖ Camcorders
(This includes sign language, interpretation and
Braille translation)
Communications and travel
❖ Research and media scanning services
❖ Consultancy eg on software or websites
Allowable expenditure:
❖ Insurance for office contents other than centrally
❖ Postage from the constituency
provided computers
❖ Constituency telephone costs including line rental
❖ Occupational health advice or services for staff
❖ Printing and sending newsletters, establishing
❖ Training for Members and/or their staff
and maintaining websites, provided that these
❖ Recruitment services
meet Department standards and do not amount
to political campaigning
❖ Work that you would reasonably expect a
❖
member of your staff to undertake.
Accommodation during trips funded by
extended travel
❖ Subscriptions eg to newspapers or periodicals
Expenditure not allowable:
❖ Recruitment and recruitment advertising costs
❖ Advice for individual Members on self promotion,
❖ Notification to the Information Commissioner
or PR for individuals or political parties.
❖ Staff travel if warrants are not used
❖ Any insurance which is bought by the House
❖ Taxis and private hire cars
centrally. This includes:
(You must provide receipts.) See section 7.1.2.
• public liability
• employers’ liability
Expenditure not allowable:
• personal accident for Members and their
spouses
❖ Campaigning on behalf of a political party
or cause
• travel for Members and their staff while abroad
❖ Communications or travel on personal or
• defamation
party political matters
• accidental loss and damage for centrally
❖ Travel and/or accommodation for anyone who
provided computers etc
is not a Member or their employee
• professional liability.
❖ Wreaths, greetings messages and cards etc
❖ Hospitality and entertainment.
17
Staffing Allowance
Section 6
FREQUENTLY ASKED QUESTIONS
How do I know how much money I have in this
The Department will tell you at the start of the
budget each year?
allowances year, which begins on 1 April.
See explanation in section 6.7.
How do I arrange payment for a new employee?
Ask the Department for a new starter pack which
contains information for your new employee and a
copy of a form A for you to fill in before your
employee is paid.
Do I need to give my staff a contract of
Yes. You must send a copy of the contract of
employment?
employment to the salary services section within
8 weeks of your employee starting work.
How do I change the salary of an existing
Ask the Department for a change of rate form.
employee?
What monitoring information will I receive?
We will issue a projection at the beginning of the
allowances year. We will update this as needed when
your staffing arrangements change.
Can I make a payment to an employee myself
No.
and then claim reimbursement from my staffing
allowance?
Can you pay for cover when employees are off
Yes. If they are off for more than 2 continuous weeks
on maternity leave or sickness absence?
you can claim temporary secretarial allowance.
18
Staffing Allowance
Section 6
6.1.1. Scope of allowance
6.5.1. Approved contracts and pay ranges
The staffing allowance is available to meet the costs
Staff who are paid from Members' staffing allowances
wholly, exclusively and necessarily incurred on the
must be paid in accordance with the pay rates linked
provision of staff to help Members perform their
to job descriptions and standard contracts prepared
Parliamentary duties. Further details of allowable
by the Department of Finance and Administration, and
expenditure are set out at paragraph 6.10.1.
approved by the Speaker's Advisory Panel. The only
staff who are not required to conform with these
6.2.1. Eligibility
arrangements are those who were employed before
Subject to the paragraphs which follow, all Members
5 July 2001 and therefore have pre-existing
of Parliament may draw on the staffing allowance to
employment rights; self-employed staff who are
pay their staff.
recognised as such by the Inland Revenue (Public
Department 1), and a very small number of staff
6.3.1. Calculation of staffing allowance for
approved by the Department of Finance and
individual Members
Administration who are employed on non-standard
jobs, eg facilitators for Members with disabilities.
The Department will calculate a ceiling on the staffing
allowance for individual Members at the beginning of
6.6.1. Relationship with the incidental expenses
the allowances year. We will not adjust this ceiling
provision, and paying for bought-in services
in-year if your staffing arrangements change.
You may supplement the staffing allowance by
6.3.2.
drawing on any surplus funds either from your own
Parliamentary salary or from the incidental expenses
If you have a London constituency you will
provision.
automatically receive an increased staffing allowance.
6.6.2.
6.3.3.
The staffing allowance is ring-fenced. You may not
If you have a constituency elsewhere you will also
switch funds out of the staffing allowance for use
receive an enhanced staffing allowance if you have
elsewhere.
an employee or employees based wholly or mainly
in London. The maximum staffing allowance which
6.6.3.
you receive will be equivalent to the staffing allowance
for London Members. The purpose of the
The costs of bought-in services may be met from the
enhancement is to take account of the higher
IEP, or alternatively from the staffing allowance. If you
employment costs involved.
charge bought-in services to the staffing allowance
the total costs in any allowances year may not exceed
6.3.4.
25% of that allowance. (See section 6.10.1. for
guidance on those bought-in services which are
The enhancement described in paragraph 6.3.3.
regarded as allowable.)
will be calculated to take account of the number of
permanent staff, and staff on fixed term contracts
6.7.1. Annual adjustment
which on 1 April of the year concerned have at least
3 months yet to run, who are employed by you.
The ceiling on the staffing allowance will be adjusted
These staff must be based wholly or mainly in London.
annually in line with the movements in pay for similar
Members with part-time staff will attract a proportion
jobs outside the House. At the beginning of each
of the extra money available in respect of full-timers.
allowances year the Department will advise Members
of the ceiling for their staffing allowance. We will not
6.4.1. Period for which claims may be submitted
however uprate the pay of Members’ staff
automatically. If you wish to increase the pay of your
The allowances year runs from 1 April to 31 March.
staff, please notify the salary services section.
Subject to the paragraph which follows, there is no
ceiling on the proportion of this allowance which you
6.8.1. At the end of the allowances year
may draw down at any point in the year.
If part of the staffing allowance remains unspent at
6.4.2.
the end of the allowances year, then for a further
2 months you may draw on the unspent allowance,
If you enter or leave Parliament part way through the
eg for bonuses or overtime payments - providing that
allowances year your entitlement will be calculated on
these relate to work done during the year in question.
a quarterly basis. For example, if you leave in July
See also paragraph 6.10.1. for rules on bonuses.
(ie during the second quarter) you will be entitled to
two quarters' worth of the staffing allowance. If you
have spent more than this you will be asked to repay
the excess.
19
Staffing Allowance
Section 6
6.9.1. Avoidance of overspends
❖ Travel, subsistence and/or expenses for staff
You must ensure that funds are available to meet
and volunteers.3 (This must be paid through
all commitments. If the staffing allowance is
the payroll as a tax charge may be incurred)
exhausted and you have commitments to pay staff,
the Department of Finance and Administration will only
❖ Reasonable cover for staff absences
honour these if you transfer money into the staffing
(eg for caring, maternity, parental leave or
allowance in advance from the incidental expenses
sickness absence) of up to 2 weeks
provision or out of your own Parliamentary salary.
❖ Pay of cleaning staff
The Department of Finance and Administration is not
(Exceptionally, the new pay guidance does
empowered to honour your commitments if you do
not apply.)
not do this.
❖ Meals and subsistence
❖ Additional pensions contributions for
6.10.1. Allowable expenditure
Members’ staff4
The following list below gives examples of expenditure
❖ Childcare costs4
which are allowable, provided that the expenditure
is wholly, exclusively and necessarily incurred on
❖ Contributions to private healthcare schemes
Parliamentary duties. It also gives examples of
for Members’ staff4
expenditure which is not allowable. If in doubt please
❖ Non-repayable season tickets for Members’
consult the help numbers given.
staff.4
Allowable expenditure
❖
Expenditure not allowable:
Staff salaries and employer’s NI - provided that
for any staff taken on since 5 July 2001, they are
❖ Salaries of staff taken on since 31 July 2001
employed on the new standard contracts and
who are employed on pay rates which do not
their salaries and contracts meet the
conform with the pay guidance issued by the
Department rules
Department of Finance and Administration;
❖
or on non-standard contracts unless specially
Overtime payments
authorised by the Department
❖ Bonuses/performance awards1
❖ Staff who are employed on party political duties
❖ Payments to self-employed staff recognised as
or non-Parliamentary duties
such by the Inland Revenue in Cardiff.
❖ Gifts valued at over £10
(Public Department 1)
❖
❖
Hospitality or entertainment, such as Christmas
Payments for bought-in services
parties or lunches.
(See section 5 for further guidance)
❖ Severance pay or pay in lieu of notice if payable
❖ Settlements made at tribunals and court
hearings (and in advance of such hearings)
The allowances will not meet the costs of
punitive damages.2
1
3
Bonuses paid during the year may not exceed 15% of
You are encouraged to pay subsistence for your staff if
that employee's gross annual salary.
they attend training activities away from their work place.
2
4
Litigation. Members finding themselves involved in
These should be considered as part of the overall
litigation solely relating to actions arising from the
remuneration package for the purpose of the guidance
performance of their duties as a Member of Parliament
on salaries issued by the Department of Finance and
or as an employer should contact the Head of the
Administration. They should not be paid in addition to
Operations Directorate immediately. If the action relates
the recommended salary levels.
to an employee, please seek advice from the Department.
20
Travel Entitlements
Section 7
7.1.1. General
7.1.4. Allowable journeys
The House will fund reasonable travel provided that it
is wholly exclusively and necessarily undertaken for
The following are allowable provided that the travel
Parliamentary duties such as:
was undertaken on Parliamentary duties.
a Standard travel: Travel by the recognised direct
❖
Attendance in the Chamber, in Westminster Hall
route between any two of the following three
or in committees of the House
points:
❖
Visits to constituents
❖ Your main home1, Westminster, the
❖
Other visits to undertake constituency casework
constituency.
or where required for general constituency
Section 7.2. gives further details.
matters
b Constituency travel: Travel within
❖
Surgeries and advice sessions
the constituency, and travel between the
constituency and local or regional offices of
❖
Other issues relating to matters currently before
government departments, offices of local
the House or before a select committee on which
authorities, or the regional or Parliamentary
you serve
assembly.
This is limited to journeys listed in 7.1.4. below.
Section 7.3. gives further details.
c Extended travel within the UK
7.1.2.
(This requires advance authorisation.)
Provided that the journey is allowable under one of the
Crown dependencies are not allowable.
four categories listed in 7.1.4. below, the House will
Section 7.4. gives further details.
meet the costs of:
d European travel to the Parliaments of
EU Member countries or candidate countries
❖
Fares for journeys by public transport. This may
(This requires advance authorisation.)
include sleeping berths for overnight journeys
Section 7.5. gives further details.
❖
Mileage for cars, motorbikes or bicycles
❖
Taxis and private hire cars at car mileage rates only
These are described in more detail below.
(If you wish to claim the full costs, you may use
your incidental expenses provision.
Journeys which are not allowable
You must provide receipts.)
7.1.5. You cannot claim for:
❖ Journeys on party political business eg to party
7.1.3. What cannot be claimed?
conferences, party events
You cannot claim for:
❖ Journeys to private destinations
❖
Subsistence
❖ Journeys within the UK other than a to d above
(Except for European and extended travel.)
❖ Journeys to European destinations - other than
❖
Travel fares for anyone other than you, your staff
those allowed under European travel.
and family as set out in the guidance which
follows. You may however carry passengers with
you in your car
❖
Congestion charges, tolls, and car parking
(An allowance for these is included in the car
mileage rates.)
1
If you are claiming additional costs allowance, this
home must be the same as the main home for ACA.
Please see section 3 on the ACA for a definition of your
main home.
21
Travel Entitlements
Section 7
Mode of travel
7.1.6. Using your car
7.1.16. Using warrants
You will be reimbursed for car mileage at standard
You may be given books of warrants for use when
rates, found in the Quick Guide to Members’
buying public transport tickets for standard journeys,
allowances. This is updated each April.
and for spouse and employee travel. You are
personally accountable for the use made of warrants
7.1.7.
issued to you. Please follow the following rules:
We calculate car mileage for standard travel using the
❖
Use each warrant for one journey only
Autoroute digitised mapping system.
❖
Enter all journey details and the date
❖
Use the warrant and the ticket bought with it only
7.1.8.
for travel for allowable journeys
Please note that you must notify us if you are driving
❖
If you have unused tickets which are no longer
in a car which is partly but not wholly owned and
valid please return them to the Department in
maintained by you, as a lower mileage rate will be
order to obtain a refund
paid.
❖
Use the warrants via the Parliamentary Travel
7.1.9.
Office where possible, so that we can obtain
bulk discounts
If you use your car for constituency travel you may
need to record mileage in some circumstances.
❖
Let the Department know promptly about any
Section 7.3.2. explains.
warrants lost or stolen.
7.1.10.
7.1.17. Class of travel
The current mileage rate includes an element for car
There is no restriction on the class of travel for
parking and road tolls, so you cannot claim these
Members.
separately. And you cannot claim for congestion
charges or similar.
7.1.18.
Members’ employees are generally expected to travel
7.1.11. Using cars owned by other people
via standard class.
We will also pay the mileage rate if you drive or
are driven in a car owned and maintained by
7.1.19. Prompt submission of claims
someone else. You must undertake to pass this
We ask you to submit claims promptly, and in any
sum on to them.
case within 2 months of the end of the allowances
year to which they relate.
7.1.12. Travelling by public transport
If you (or your staff or family) make an allowable
7.1.20. Tax
journey by public transport you may either:
There are complex rules on the taxability of journeys.
❖
Buy a ticket yourself and claim back the costs, or
These are set out in the booklet ‘MPs, Ministers and
❖
Use a travel warrant, if you have one.
Tax’, available from the Department.
7.1.13.
You are encouraged to purchase your tickets via the
Parliamentary Travel Office if at all possible, so that the
House can benefit from route deals. You can use your
warrants at the Travel Office.
7.1.14.
You may claim for a season ticket to the Westminster
area if you make four return journeys per week during
sitting weeks.
7.1.15. Claiming reimbursement of ticket costs
If you pay for the ticket yourself you should inform
the Department in writing. You will need to submit the
ticket or a copy of it, or supply the ticket number.
22
Travel Entitlements
Section 7
Standard travel
Constituency travel
7.2.1. Allowable journeys
7.3.1. Allowable journeys
Standard travel is travel between any two of the
Constituency travel includes both:
following three points: the constituency, Westminster
and your home.
❖ Travel within the constituency and
❖ Travel between the constituency and local or
How to claim
regional offices of government departments,
7.2.2. Registering your journeys
offices of local authorities, and the regional or
Parliamentary assembly.
You must pre-register your standard journeys.
Normally this is done when you first enter the House,
but you must tell us of any change to your standard
How to claim
destinations, such as a move of home.
7.3.2. Mileage
Use a Standard Mileage form (T1). If you drive 350
7.2.3.
constituency miles or more per month you must
When you register standard journeys you will be given
provide a breakdown by date, destination, frequency
a code for each part of the journey.
and miles for all constituency miles driven that month.
7.2.4. Obtaining reimbursement
7.3.3. Public transport
To claim, complete a Standard Mileage form (T1) and
Either use a travel warrant or submit a request for
quote the code that has been given for that part of the
reimbursement together with ticket details.
journey, and the date, for example:
car from home to station
(Birmingham New Street) (A)
23 September 02
train from Birmingham to London (B) 23 September 02
(You do not need to claim for journeys made using a
warrant. You simply use one of the warrants issued to
you to buy a ticket in advance.)
7.2.5.
You are encouraged to purchase your tickets via the
Parliamentary Travel Office if at all possible, so that the
House can benefit from route deals. You can use your
warrants at the Travel Office.
7.2.6. How to claim for a diverted journey
Please notify us if you divert from a standard journey
to undertake another engagement. Unless it is a
destination allowable for extended travel, you will only
be able to claim for the standard journey.
23
Travel Entitlements
Section 7
Extended travel
European travel
7.4.1. Allowable journeys
7.5.1. Allowable journeys
Extended travel is travel within the UK other than
You can claim for travel on Parliamentary duties to:
constituency or standard travel. Any expenditure
❖ EU institutions in Brussels, Luxembourg or
must be wholly, exclusively and necessarily
Strasbourg, and/or
incurred on Parliamentary business and the
❖ National Parliaments of EU states or candidate
journey must:
countries.
❖ Relate to a matter currently before the House; or
❖ Relate to a matter currently before a select
7.5.2.
committee on which you serve; or
The Department can provide a list of EU states
❖ Be to a constituent (eg a jailed constituent)
and candidate countries. Other destinations are
or relevant as a general constituency matter
not allowable.
(eg a road about to be built through the
constituency)
7.5.3. What you can claim
You can claim each year2 for up to:
7.4.2.
❖
3 return visits (subject to an annual cost ceiling
Travel to Crown dependencies is not allowable.
equivalent to three times the business class
airfare per Member) and
7.4.3. How to claim
❖
Two nights’ subsistence per visit. This will be
Complete an Extended Travel form (T2) at least three
paid at the Civil Service Class A rate.
days before your journey, and await authorisation.
7.5.4.
7.4.4.
You may travel by car, bicycle or motorbike, in which
You can either buy the ticket yourself and claim back
case you may claim mileage and/or by air or sea or by
the costs by informing the Department in writing, or
any other means of public transport excluding taxis.
use a special travel warrant, obtainable from the travel
You cannot use a travel warrant for European travel.
section. Please do not use a normal warrant for this
You must buy any tickets yourself and claim back the
journey.
costs.
7.4.5.
7.5.5.
You are encouraged to purchase your tickets via the
You are encouraged to purchase your tickets via the
Parliamentary Travel Office, so that the House can
Parliamentary Travel Office, so that the House can
benefit from route deals. You can use your warrants
benefit from route deals.
at the Travel Office.
7.5.6. How to claim
7.4.6.
You will need to write to the Department to seek
If you want to claim mileage, use a Standard Mileage
authorisation. We will communicate this to you in
form (T1).
writing. After the journey inform the Department in
writing of the costs incurred and submit supporting
7.4.7. Subsistence
documents.
You can claim subsistence for extended travel, but
you must charge this to your own incidental expenses
7.5.7. Select committee and delegation travel
provision.
These are funded through separate arrangements.
7.5.8.
If you are a member of a select committee, the Clerk
will advise on how to claim.
7.5.9.
If you visit the Council of Europe, the Western
European Union or the North Atlantic Assembly as
part of a delegation, the Overseas Office will advise
on how to claim.
2
Beginning on 1 April.
24
Travel Entitlements
Section 7
7.7.4. Class of travel
Spouse and child travel
Members’ employees are generally expected to travel
7.6.1. Allowable journeys
via standard class.
Members’ spouses and children up to the age of
7.7.5. Subsistence
183 are each entitled to up to 30 single journeys
If your employees have to spend more than 5 hours
each calendar year between London and the
away from home and away from your normal
constituency or the Member’s home4.
workplace, we recommend that you pay subsistence
out of your staffing allowance. Any arrangement for
7.6.2.
subsistence must be agreed between the Member
You will be asked for the names of your spouse and
and the employee before the journey.
children, so that we can provide books of warrants.
Please let us know of any relevant changes, for
7.7.6.
example any changes to your marital status.
We recommend that staff claim at the rates specified
by the Department of Finance and Administration.
7.6.3. Definition of child
These figures also apply to House staff. They are
For these purposes a child also includes a step child,
updated periodically.
an adoptive child, a foster child and any other child
living with you as one of your family.
7.7.7.
Staff may claim the actual cost of bed and breakfast,
7.6.4. How to claim
provided that the arrangement and the cost ceiling
Your spouse and/or children may travel by car, bicycle
was agreed in advance with the Member. These
or motorbike, in which case you may claim mileage;
costs must not exceed those of staying in a 3-star
or by air or sea or by any other means of public
hotel in the locality. The employee must provide
transport. You can either buy the ticket yourself and
receipts.
claim back the costs, or use a travel warrant
obtainable from the travel section.
7.7.8.
Members’ staff may not claim for laundry, entertainment,
Employee Travel
or for meals which have been provided free.
7.7.1. Allowable journeys
7.7.9.
You are entitled to up to 18 single journeys each
Staff based outside the Parliamentary estate are also
calendar year shared between your employees.
entitled to free travel to undertake training if:
These journeys must be between Westminster and
❖
Its purpose is to improve skills needed for the
the constituency. This entitlement can only be used
job,
and
for employees paid through the staffing allowance.
❖
The training is provided via the Parliamentary
Learning and Development Project.
7.7.2. How to claim
This entitlement applies both to training in London and
You can either pay for the ticket yourself and claim
elsewhere.
back the costs by informing the Department in writing,
or use a travel warrant obtainable from the travel
This travel is paid for on a reimbursement basis only.
section. You are encouraged to purchase your tickets
Apply using form TE2.
via the Parliamentary Travel Office, so that the House
can benefit from route deals.
7.7.3.
If your employees undertake other travel in the course
of their duties for you, you may submit claims for this.
We will normally pay such claims from your staffing
allowance or IEP. Some may be liable for tax and/or
national insurance.
3
and, by individual arrangement with the Department of
journey it replaced. You must register the alternative
Finance and Administration, Members’ children over 18
destination with the Department of Finance and
who have a disability.
Administration in advance of any travel.
4
For child travel only, you can nominate one other
destination or starting point instead of one of these three.
The cost of the new journey must not exceed that of the
25
Short Money
Section 8
FREQUENTLY ASKED QUESTIONS
What is Short Money?
Financial assistance paid to Opposition parties.
How do I claim?
You do not have to claim, other than for travel.
8.1.1.
8.5.1. Travel claims
Each political party is responsible for the allocation of
A separate budget is available for travel and
individual entitlements.
associated expenses necessarily incurred by
Opposition parties’ spokesmen. Travel claims should
8.1.2.
be sent to the Department monthly.
The provision of financial assistance to Opposition
parties or ‘Short Money’, as it is commonly known,
8.6.1. Independent audit
is governed by a resolution of the House. It is only
Each party claiming Short Money must provide a
available to assist Opposition parties to carry out their
certificate from an independent professional auditor,
Parliamentary business. It is automatically paid in
no later than nine months after 31st March each year,
arrears every month.
to the effect that all expenses relating to Short Money
payments for the year were incurred exclusively in
8.2.1. Conditions of eligibility
relation to the party’s Parliamentary business.
Any sums remaining unspent at the end of the year
In order to qualify, Opposition parties must have:
(31st March) must be returned to the Department.
a
At least two Members of Parliament who were
If an acceptable certificate has not been provided
elected at the previous general election as
within nine months after the end of the financial year,
members of that party;
payments will be suspended until an acceptable
or
certificate has been received. The audit certificate
b
One Member elected with at least 150,000 votes.
should be in a standard form, as set out opposite.
Following the receipt of a valid audit certificate,
8.3.1. Sums payable
any underspend of the monies already paid to an
individual party will be reclaimed by the Department
The total payable to each qualifying Opposition party
of Finance and Administration.
is linked to a formula based on the number of seats
won and votes cast at the previous general election.
8.7.1. In a general election year
8.3.2.
The periods before and after an election will be
treated as separate periods. The sums payable will
Amounts are increased annually in April in line
be apportioned according to the number of days in
with RPI.
each period.
8.4.1. Leader of the Opposition
8.7.2.
Financial assistance is also available for costs
Immediately after a general election, the Department
necessarily incurred for running the office of the
will contact each Opposition party and agree a
Leader of the Opposition: this also increases every
statement of the facts, as a basis for future claims.
year in line with the RPI, and is payable in arrears at
periods of not less than one month.
*See over for claim form
26
Short Money
Section 8
To
The Accounting Officer
Director of Operations
Finance & Administration Department
House of Commons
London SW1A 0AA
Certificate of an Independent Professional Auditor in Respect of Financial Assistance
Received by an Opposition Party
Certificate of the Auditor to the Accounting Officer of the House of Commons
In accordance with the requirements of the Resolution of the House of Commons of 26 May 1999 -
Section 5(1), I have audited the expenses for which the
party has received
financial assistance.
Respective responsibilities of the Party and the Auditor
The party are responsible for ensuring that the expenses have been incurred
exclusively in relation to the party’s parliamentary business. It is my responsibility to form an
independent opinion, based on my audit, on the expenses received and to report my opinion to you.
Basis of Opinion
I conducted my audit in accordance with auditing standards issued by the Auditing Practices Board.
I planned and performed my audit so as to obtain all the information and explanations which I
considered necessary in order to provide me with sufficient evidence to give reasonable assurance
that the expenses for which the party have received financial assistance have
been applied to the purposes intended by Parliament.
Opinion
In my opinion, in all material respects, all expenses for which the party received
financial assistance amounting to £ for the year ended were incurred
exclusively in relation to the party’s parliamentary business in accordance with the requirements of
Section 5 (1) of the Resolution of the House of Commons of 26 May 1999.
Signature
Name
Company
Position
Address
Registered
Professional Qualification
Date
27
Members Who Leave The House
Section 9
FREQUENTLY ASKED QUESTIONS
What are my entitlements?
You will be entitled to:
q
The resettlement grant if you retire or are
defeated at a general election
(Section 9.1. refers.)
q
The winding up allowance
(Section 9.2. refers.)
q
The ill health retirement grant if your health prevents
your continuing participation in Parliamentary duties
(Section 9.3. refers.)
q
Financial help from the Members’ hardship fund if
you or your dependents are in difficult straits
(Section 9.4. refers.)
If your staff become redundant because you leave
the House they may be entitled to a centrally funded
redundancy payment.
(Section 10 refers.)
Resettlement Grant
9.1.1.
9.1.3. How to Claim
The Department will pay a grant to any Member who
Claims should be made on the appropriate
leaves the House of Commons at a general election.
resettlement grant claim form and sent to the
Department. You must claim within 6 months.
9.1.2.
The amount of the grant due will vary according to
9.1.4. Tax
your, age, length of service and the annual salary in
If the grant is £30,000 or less, it is tax-free. If it is
force at the time of the Dissolution of Parliament.
more, only the first £30,000 is tax exempt. The grant
The amount of grant is calculated according to the
will be shown on your P11D, as you are required to
table below.
declare the sums received on your tax return.
Calculation of Resettlement Grant
Percentages of Yearly Salary
Number of completed years service
Under
15 or
Age
10
10
11
12
13
14
over
Under 50
50
50
50
50
50
50
50
50
50
50 52
54
56
58
60
51
50
52
55
58
62
65
68
52
50
54
58
63
67
72
76
53
50
56
62
67
73
78
84
54
50
58
65
72
78
85
92
55 to 64
50
60
68
76
84
92
100
65
50
58
65
72
78
85
92
66
50
56
62
67
73
78
84
67
50
54
58
63
67
72
76
68
50
52
55
58
62
65
68
69
50
50
52
54
56
58
60
70 or over
50
50
50
50
50
50
50
28
Members Who Leave The House
Section 9
Winding-Up Allowance
9.2.1.
9.2.4. How to claim
An allowance equivalent to one third of the current IEP
The Department will accept instructions to make
and staffing allowance combined is paid to meet the
salary and pension premium payments from former
costs of any work on Parliamentary business
Members or in the case of deceased Members, from
undertaken on behalf of a deceased, defeated or
their legal personal representative. The payroll service
retiring Member after the date on which they cease
is limited to four months from the date of departure.
to be a Member of Parliament. The total winding up
Any outstanding debts on computer purchases under
allowance represents a ceiling for eligible claims and
the central purchasing scheme will be a primary
is not an entitlement. It is normally available for 6
charge, followed by authorised payroll payments.
months after your departure.
9.2.5.
9.2.2.
Claims for other expenses will need to be completed
The scope of the winding-up allowance is much
by the former Member or, in the case of a deceased
broader than the IEP, being designed to cover all
Member, by the legal personal representative. Attach
Parliamentary costs incurred after the date of
receipts to all claims.
cessation of Member status. All other allowances
cease on this date.
9.2.6. Special arrangements for staff of a
deceased Member
Where there is any doubt as to the legal personal
9.2.3. Eligible expenses
representative, in order for the Department to have
These are expenses incurred in connection with
the authority to continue salary payments it has been
winding up, and can include the following:
agreed that a Whip of the party concerned may
❖ Salary and employer’s NI contributions for staff
provide written authorisation as an interim measure.
who continue to be employed, and related
pension contributions
9.2.7.
❖ Other contractual liabilities for staff - particularly
The Department normally contacts the Chief Whip of
where the Member is defeated or has died 1
the party concerned to ensure all arrangements are
❖ Contractual liabilities for equipment hire
carried out as smoothly as possible.
purchase or accommodation leasing
agreements
❖ Travel expenses
❖ Postage, stationery and telephone costs.
1
Redundancy payments in the circumstances are made
from a separate fund. See section 10.3.1.
29
Members Who Leave The House
Section 9
Ill health retirement grant
The House of Commons Members’
9.3.1.
Fund (HCMF)
Any member whose health prevents their continuing
9.4.1.
participation in Parliamentary activities will be entitled
The HCMF is basically a hardship fund. It provides for
to claim this grant.
ex-Members and their financial dependents who find
The grant is calculated, and taxed, in the same way
themselves in difficult straits.
as the resettlement grant.
Currently you have to pay £2 a month from your salary
to the fund (you receive tax relief on this contribution.)
Claims
This is deducted automatically by the Department of
Finance and Administration. The fund is managed
9.3.2.
by six trustees, who are all sitting Members of
Applications should be made in writing to the
Parliament. The Public Trustee acts as Custodian
Director of Operations, Department of Finance and
Trustee, with the Pensions Unit secretariat providing
Administration.
administrative support.
30
Redundancy Payments To Members’
Section 10
Staff & Other Employment Matters
FREQUENTLY ASKED QUESTIONS
Where does the money for redundancy payments
If you make someone redundant while you are in
come from?
office, the money comes from your staffing allowance.
But if you cease to be an MP, it is paid from a
separate budget, with any additional sums payable
from the staffing allowance.
Who is entitled to this redundancy payment?
Currently, anyone who has completed two years of
continuous service with you, but only in a genuine
redundancy situation.
How much are they entitled to?
The statutory sum is based on a sliding scale, which
takes into account age, length of service and pay.
Any other sums are dependent on the agreed contract
of employment.
31
Redundancy Payments To Members’
Section 10
Staff & Other Employment Matters
10.1.1. What is a redundancy?
10.4.1. When a sitting Member makes
All dismissals on the grounds of redundancy need to
an employee redundant
comply with the Employment Rights Act 1996.
The employee is entitled to the minimum redundancy
payment, in line with current legislation, applying the
10.1.2.
same qualifying criteria as above. A Member may
Anyone who has completed two years of continuous
have a contractual obligation to pay more than this,
service with you will be entitled to a redundancy
or may wish to do so. Contracts of employment
payment. There are slightly different rules for staff
should be consulted.
made redundant as a result of the Member leaving the
service of the House, and for those who are made
10.4.2.
redundant by a sitting Member.
All redundancy payments, where the Member remains
in the service of the House, have to be met from the
10.2.1. Other reasons for dismissal
staffing allowance or the Member’s personal funds.
There are other reasons for dismissal, which cannot
The redundancy fund does not apply in this case.
be treated as a redundancy situation; these can
include poor performance, poor attendance etc.
10.5.1. Tax
If you have to pay any compensation in these
Lump sum redundancy payments made in genuine
circumstances, you may be able to claim it from the
redundancy situations will not be subject to tax, up to
staffing allowance (funds permitting). If you have any
a maximum of £30,000. However, Members are
staffing issues, please contact the Personnel Advice
advised to check with the Department or employment
Service prior to taking any action.
advisors on the current position if there is any
likelihood of a redundancy situation arising. If an
10.3.1. When a Member leaves the service
additional lump sum redundancy payment is made
of the House
above the statutory limit the tax office will require a
A separate fund exists to cover redundancy payments
questionnaire to be completed before a decision on
to qualifying staff when their Member leaves the
tax implications can be made.
House for any reason. To qualify, staff must have at
least two years service, be under the age of 65, and
10.6.1. Guidance on redundancy or
not be self-employed.
employment law
Please feel free to contact our impartial help number
10.3.2.
to clarify any points relating to redundancy or
Payments will be made in line with existing legislation,
employment law. The Citizens Advice Bureau and
which is based on weekly salary, length of service and
employment lawyers can also be consulted for legal
a statutory maximum.
advice in these situations. Any legal costs may be
claimed against your staffing allowance
10.3.3.
(funds permitting).
You can make additional payments (either contractual
10.6.2.
or non-contractual) from your staffing allowance, funds
permitting. The winding-up allowance (WUA) cannot
Please remember that you are the employer, and are
be used for this purpose.
personally responsible for how the employee is treated
and for ensuring that the terms and conditions of the
employment contract are upheld. You should ensure
they comply with employment protection legislation,
sex, race and disability discrimination legislation, and
health and safety legislation.
32
Dissolution Arrangements
Section 11
FREQUENTLY ASKED QUESTIONS
What happens to my pay and allowances during
All entitlements except your salary, IEP and staffing
the Dissolution period?
allowance cease during this period.
What should I do if I know I will be standing down
Please tell us. If we are forewarned, we can provide
at the next election?
you with information and claim forms to ensure you
receive any entitlements (resettlement grant, winding-
up allowance, pension etc.) due as swiftly as possible.
We can offer an exit interview to help answer any
queries you may have.
If I lose my seat at the election will I still be
Yes, and we will contact you as soon as possible to
entitled to the same benefits as Members who
arrange an exit interview or to send you any forms you
stood down at the general election?
need to complete to ensure you are able to claim your
full benefits.
What about my staff during this period?
We will continue to pay them, unless you have
instructed us otherwise, but they will only be entitled
to one free single journey from the
travel allowance.
What about redundancy packages for my staff?
A full explanation is provided in section 10.
Staff may qualify for a statutory redundancy payment if
you leave the service of the House.
This is paid from a separate fund, over and above the
staffing allowance.
33
Dissolution Arrangements
Section 11
11.1.1.
11.4.1. Employees’ pensions
The arrangements relating to the various allowances,
Free pension premium payments for your staff will be
salaries, pensions etc. are handled by each section,
payable for the period of Dissolution. For payment of
and many have been described in previous sections.
these expenses after the election for those Members
This is an attempt to bring that information into one
not returning to the House, please see winding-up
chapter, for ease of use. Essentially all entitlements
allowance.
except your salary, IEP and staffing allowance cease
during the Dissolution period, and recommence on the
11.5.1. Additional costs allowance (ACA)
day after polling day (for re-elected Members.)
There is no entitlement to this allowance during the
Dissolution. You may only claim reimbursement of the
11.1.2.
additional costs incurred in staying away from your
You are advised to inform the Payroll and Pensions
main home for the period before Parliament is
sections if you intend to stand down at a general
dissolved. You must ensure your claim forms clearly
election, as this may help speed any payments.
state the actual dates of the claim, otherwise we will
However if you do not contact the Department and
have to return them for appropriate amendment.
either stand down or lose your seat you will be
contacted and offered an exit interview to explain
11.5.2.
your entitlements.
Entitlement to the ACA recommences on the day after
polling day for re-elected Members.
11.2.1. Members’ salaries
Your Parliamentary salary will be paid during the
11.6.1. Members’ travel
Dissolution until the end of polling day. If you leave
Once the Dissolution has been announced, you are
the House at an election your salary will be paid up to
only entitled to one journey at public expense to return
and including polling day. If you are re-elected, you
to either your home or constituency. You must not
will be paid your salary for the full month in the usual
use any other warrants, or claim motor mileage
way, provided you have taken the oath or affirmed.
allowance during the dissolution. The entitlement
recommences after polling day if you are re-elected.
11.3.1. IEP and staffing allowance
The IEP and staffing allowance will be available
11.6.2.
throughout the Dissolution, up to and including polling
If you are standing down at an election please return
day. Salary payments to your staff will continue during
all warrants in your possession. If you are not
this period unless you advise us otherwise.
re-elected, you must also return all warrants, including
spouse or employee warrants to the travel section.
11.3.2.
The allowance year runs from 1st April to 31st March
11.6.3.
each year, and entitlement for those who leave the
Please note if you use open return tickets, you are
House is based on the quarter in which they leave.
only entitled to use one journey to return to your
For example, if an election is called in May, you will be
home or constituency and you should resist using
entitled to one quarter of the current IEP and staffing
the tickets for any other journeys during the
allowance, for any expenses incurred from 31st
Dissolution. Any unused or part-used rail, air etc.
March. If you leave the House at an election you
tickets should also be returned to the travel section
will cease to be entitled to claim IEP and staffing
if you are not re-elected.
allowance for expenses incurred after polling day,
but you will be entitled to winding-up allowance in
11.6.4.
connection with any Parliamentary duties.
If you are provided with a season ticket from the
Department, this should also be returned to the
11.3.3.
travel section. Anyone re-elected will have their
If you are successfully re-elected you will continue with
ticket returned in the usual manner.
your existing allowance entitlement, once you have
taken the oath or affirmed. Existing staff salaries and
any other regular payments will continue to be made.
If you want to change this you must inform the
Department in writing, as soon as possible.
34
Dissolution Arrangements
Section 11
11.7.1. Members’ staff travel
11.10.1. Resettlement grant
Except for the purpose of making one single journey
If you leave the House at an election you will be
from Westminster to the constituency on
entitled to claim a grant based on your age and length
Parliamentary business within the entitlement of nine
of service, but excluding any earlier periods for which
free return journeys per year (staff paid from the
you have already received a grant. The grant ranges
staffing allowance), employees should not use travel
from 50% to 100% of the Parliamentary salary in force
warrants or claim any other travel expenses during the
at the time of dissolution.
period of Dissolution. You may charge any journeys
Further details are at section 9.
undertaken on Parliamentary business by your
employees during the Dissolution period against your
11.11.1. Members’ pensions
IEP, if there are sufficient funds available.
If you have announced your intention to stand down
at the election the Secretariat of the Parliamentary
11.8.1. Winding-up allowance
Contributory Pension Fund will write to you, setting
This allowance is designed to cover necessary
out your specific entitlements. All others leaving at
expenses incurred in winding up your Parliamentary
the election will also be individually advised of their
business if you retire or are defeated in a general
prospective pension entitlements.
election. Section 9 gives further details.
11.12.1. Other items
11.8.2.
It is important to ensure that any monies owed
If required, we will accept instructions relating to
(telephone accounts etc) to the Finance and
your staff to make salary and pension premium
Administration Department are repaid prior to polling
payments. These will be chargeable to the winding-
day. In exceptional circumstances we can make
up allowance for Members not returning to Parliament.
arrangements to deduct any outstanding sums owing
The payroll service is limited to a maximum of four
(including Refreshment Department bills) from the
months beyond the date of the election in these
resettlement grant payment.
instances.
11.12.2.
11.9.1. Redundancy payments for employees
All Members who are returned to the new Parliament
Any employees who are made redundant as a result
are reminded that, although salary and allowance
of you leaving the House at an election may qualify for
entitlements commence from the day following polling
a statutory redundancy payment which depends on
day, payment cannot be made until you have taken
their employment status, age and length of service.
the oath or affirmed. All new Members will also need
The cost is met from a separate fund. Any additional
to ensure they have an induction interview and provide
redundancy payments authorised by you may,
us with enough details to ensure we can pay their
however, be charged to any remaining staffing
salary and expenses.
allowance.
35
Computer Equipment, Help For Members Section 12
With Disabilities & Security Measures
Computers and other IT equipment for
Security measures for Members' offices
Members and their offices.
Subject to a report from the local police, the central
This equipment is free of charge, on loan to Members
budget may contribute to the costs of certain
for Parliamentary use only. It is provided by the
measures taken in the constituency to safeguard
Parliamentary Communications Directorate (PCD)
Members' staff, their equipment and themselves.
on behalf of the Department of Finance and
Members must apply in advance.
Administration.
The provision allows for up to:
q
one laptop
q
three desktop PCs
q
two CD-rewriters, and
q
one or two printers, depending on the
specification required.
Members can also use their IEP to buy additional
items, providing they are used solely for Parliamentary
purposes.
Help for Members with disabilities
Subject to a report from a consultant occupational
health doctor retained by the House, Members with
disabilities can benefit from special equipment, extra
staff or travel facilities etc to help them to carry out
their Parliamentary duties.
36
FINANCE &
ADMINISTRATION
HOUSE OF COMMONS
DEPARTMENT OF FINANCE AND ADMINISTRATION - JUNE 2003
WEB VERSION WITH CORRECTIONS: UPDATED DECEMBER 2003
FINANCE &
ADMINISTRATION
HOUSE OF COMMONS
DEPARTMENT OF FINANCE AND ADMINISTRATION - JUNE 2003
WEB VERSION WITH CORRECTIONS: UPDATED DECEMBER 2003
© PARIAMENTARY COPYRIGHT 2003
£4.50
