MPs’ expenses and allowances: new Parliamentary Standards Bill introduced
23 June 2009
The old system of MPs’ self regulation is to end and a new system of robust, independent and transparent statutory regulation will be brought forward in urgent legislation introduced to Parliament by Harriet Harman and Jack Straw.
The Parliamentary Standards Bill will create a new Independent Parliamentary Standards Authority to regulate the system of allowances, set rules to deal with financial interests and put the requirement for a code of conduct for MPs on a statutory footing.
The IPSA will be independent of Parliament and will have the power to set an allowances and expenses system without requiring Parliamentary approval. It will regulate and oversee Members’ expense claims and oversee the new allowance system.
The Bill will establish a Commissioner for Parliamentary Investigations that will have the power to conduct investigations and report to the IPSA. The IPSA will be able when necessary to direct those who have received allowances they were not entitled to repay money. In addition the IPSA will be able to direct an MP to amend his or her entries in the register of financial interests.
The IPSA will be able to recommend that the House exercises its disciplinary powers to withhold a salary for a specified period, suspend a Member from the House for a specified period or expel a Member from the House.
The IPSA also has the power to refer matters to the police. The Bill will create new criminal offences of:
- knowingly providing false or misleading information in a claim for an allowance, for which the maximum sanction is up to 12 months custodial sentence or an unlimited fine
- failing to comply, without reasonable excuse, with the rules on registration, for which the maximum penalty is a fine of up to £5,000
- breaching the rules which prohibit paid advocacy, for which the maximum penalty is a fine of up to £5,000.
The IPSA will work transparently and the Freedom of Information Act will apply both to the IPSA and to the Commissioner for Parliamentary Investigations.
The IPSA will be made up of four members and a Chair. Selection to the Authority will be on merit and by fair and open competition. A candidate for appointment as the Chair or as a member must be selected by the Speaker of the House of Commons with the agreement of the Speaker’s Committee set up by the Bill.
Jack Straw, Secretary of State for Justice, said:
‘Following successful cross-party talks we are proceeding urgently with legislation to create an Independent Parliamentary Standards Authority and put the requirement for a code of conduct for MPs on a statutory footing.
‘This Bill will ensure that accountability and transparency are placed at the heart of the new system. This is vital if we are to restore the public’s trust in MPs, politics and Parliament.’
Harriet Harman, Leader of the House of Commons, said:
‘The public want to be able to have full confidence in the Parliamentary system. Members of Parliament also want confidence in the system, so that the cloud of suspicion is lifted and the reputation of the House can be restored.
‘We are grateful for the constructive cross-party discussions that preceded the Bill’s introduction. This Bill is the first stage of legislation and covers the specific but important and urgent task of setting up an independent authority. There is likely to be subsequent legislation where this is judged necessary, not least in the light of further cross-party discussions.’
Notes to editors
- Parliament has already acted to endorse a new system of allowances, which came into effect on 1 April. This built on changes approved in July 2008 and was further modified by the decisions of the House of 30 April 2009. On 19 May, the Members Estimate Committee with the Party Leaders agreed to several further interim changes.
- It is intended that the Bill will complete its Parliamentary stages by summer recess.
- The Bill has been developed on the back of cross-party talks and the main opposition parties have contributed to the Bill’s drafting.
- This Bill will not apply to the House of Lords, but the government intends to extend it to the Lords, using the same principles, as soon as the Parliamentary timetable allows.
For media enquiries, contact the Ministry of Justice News Desk on 020 3334 3536 or the Office of the Leader of the House of Commons on 020 7276 0594.
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