Frequently Asked Questions

MP’s Salaries and Allowances.

***2004 ***

 

Democracy costs money.

Most people accept that democracy costs money and it certainly needs to be open and transparent to constituents and members of the public. However, not many people know what their representatives do and how much they receive for their work. As MP for Feltham and Heston which covers an area including Bedfont, Feltham, Hounslow West, Heston, Hanworth and Cranford, I receive allowances, including the additional costs allowance, to help me carry out my work in addition to my salary of £57,485. I hope the following information will clearly explain what the taxpayers pay for.

"It was this Labour government which introduced legislation which allows all MPs' expenses ........... to be accessible to the public for the first time"

This transparency is long overdue and it was the Labour government which helped introduce legislation which allows all MPs' expenses and other information to be accessible to the public for the first time. I welcome the transparency, not just in Westminster but in other business areas to allow freedom of information which is both open and transparent.

Do I pay tax?	What's my salary?	What do ministers earn?	Comparisons?
Office costs?	Former PMs?

 

Do MPs pay tax on their parliamentary earnings?

Yes. Members of Parliament are subject to the normal PAYE rates of taxation and National Insurance that apply to all employed people in the UK.

How much help do MPs get with their Office and Staff costs?

Although members' staff remain the employees of MPs, their salaries are paid centrally by the House Authorities, according to agreed pay scales and standard contracts, as recommended by the SSRB in March 2001

• The annual staffing allowance per Member varies between £66,458 and £77,534 maximum.
  This is designed to pay for between two and three full-time equivalent staff. Members with London constituencies are eligible for the £77,534 maximum. Members with constituencies outside London can receive £66,458 plus an enhanced allowance of £3,500 for each member of staff whose work is mainly in London, up to a maximum of £77,534 in total.
• Certain IT equipment for Members' offices is also centrally provided and maintained.
  Each Member is entitled to a standard package of 3 PCs, 1 laptop computer, 2 combined printers/scanners/copiers/answer machines (or dedicated printers) and associated software. This includes provision for constituency offices. In addition, a new Incidental Expenses Provision of £19,325 is available for other expenses involved in running an office (eg, office rents and rates).
• Central funding is also available for such items as training of Members and their staff, appropriate insurance provision, exceptional expenses incurred by MPs who have constituencies with particular problems, additional payments in respect of safety precautions and reimbursing disabled Members for additional expenses through a new General Services Budget. 
  Top

What financial assistance is given to Opposition Parties?

Financial assistance for Opposition Parties (or "Short Money") was introduced in 1975.

The scheme has three components:

• General funding to assist an opposition party in carrying out its parliamentary business
  The amount payable to qualifying parties is calculated on (a) a sum for every seat won at the last Election, plus (b) a sum for every 200 votes gained by the party. The formula for 2003-2004 was £11,765.20 per seat + (£23.50 x votes x 1/200)
• Funding for the opposition parties’ travel and associated expenses
  First introduced in 1993, the total amount payable under this component of the scheme is apportioned between each of the Opposition parties in the same proportion as the amount given to each of them under the general funding scheme.

Funding for the running costs of the Leader of the Opposition’s office
Made available for the running costs of the Leader of the Opposition's Office for the financial year commencing on 1 April. The figure for 2003-2004 was £548,101.65

Top

What other allowances can MPs claim?

• Supplementary London Allowance of £1,618 pa
  Payable to Members for Inner London seats, and certain others, to reflect higher costs in London. It is not paid to Ministers with an official residence in London
• Additional Costs Allowance of £20,902 pa
  Reimburses Members with constituencies outside inner London for expenses incurred in staying overnight away from home whilst performing parliamentary duties.
• Motor Mileage Allowance of 57.7 pence per mile for the first 20,000 miles then 26.6 pence per additional mile
  Reimburses Members for the cost of travel by car or motorbike between Westminster and Members’ constituencies and their homes and for other approved journeys on parliamentary business.
• Motorcycle Allowance of 24 pence per mile and Bicycle Allowance of 20 pence per mile.
  This is a relatively new allowance, which first took effect from 1 April 1998; it applies to journeys for which Members can currently claim the motor mileage allowance or reimbursement of fares.
• Temporary Secretarial Allowance (TSA)
  Available to meet the extra cost of obtaining temporary secretarial/research assistance while a salaried permanent secretary/RA is absent from work through illness or pregnancy. The maximum entitlement will be based on the amount of the absent employee's salary for the following periods:
  Sickness - 12 months salary (available to be used over a period of 4 years)
  Maternity - 24 weeks salary (available for each maternity absence).
• Stationery, Telephone and Postage
  Members of Parliament are currently entitled to free stationery, free inland telephone calls from Parliament and free postal services from Parliament.
• Reimbursement of costs due to recall during a recess.
  This allowance was introduced in 1994 to cover the necessary expenses of Members returning to Westminster in the event of a recall of Parliament during a recess. Members can reclaim any “extra costs” they may incur due to a parliamentary recall.
• Winding Up Allowance equivalent in value to one third of sum of Staffing allowance and Incidental Expenses Provision
  Available to meet the cost of completing outstanding parliamentary and constituency business undertaken by or on behalf of a former Member in the event of their death, defeat or retirement.
• Members' Resettlement Grant.
  A person who is a Member immediately before the dissolution of Parliament and does not stand for re-election or is defeated may claim a Resettlement Grant to assist with the costs of ‘adjusting to non-parliamentary life’. The grant is calculated as a proportion of final salary; the proportion payable depends both on age and length of service. Only whole years of service are counted, and any period of service which was taken account of in the payment of a previous Resettlement Grant is not counted.
• Ministers Severance Payments.
  Generally, 3 months of annual ministerial salary is payable when a minister ceases to hold office. Full details are set out in section 4 of the Ministerial and other Pensions and Salaries Act 1991 [PGA 1991 chapter 5], as amended.

Top

How much are Ministers, the Prime Minister, the Leader of the Opposition, the Speaker in the Commons and office-holders in the Lords paid?

Ministers’ pay is made up of two elements, the parliamentary salary (Members’ pay) and a ministerial salary. The table below shows the combined salary entitlement for Ministers and other office-holders for the last complete financial year:

Ministers and office-holders in the Commons: including Parliamentary salary (£57,485 for 1.4.2004 to 31.3.2005)

Public Sector Pay Comparisons

Former Prime Ministers’ Public Duties Allowance of £77,534.
The ‘PDA’ is a financial allowance, paid from the Cabinet Office vote, to help former Prime Ministers to meet the continuing additional office costs which they are liable to incur because of their special position in public life. The allowance is equivalent in amount to the maximum Staffing Allowance and is payable in respect of office and secretarial expenses incurred in connection with former Prime Ministers’ public duties. The allowance is not payable to a former Prime Minister occupying the position of Leader of the Opposition and therefore in receipt of "Short money".

Top