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Parliamentary Standards (Amendment) Bill


 

Parliamentary Standards (Amendment) Bill

 

 
 

Contents

1   

The Members’ Allowance

2   

Consideration of a Members’ Allowance scheme by the House of Commons

3   

The IPSA administration costs objective

4   

Interpretation

5   

Short title

Schedule   —   

The Initial Calculation

 

Bill 60                                                                                                 

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Parliamentary Standards (Amendment) Bill

1

 

A

Bill

To

Amend the Parliamentary Standards Act 2009 to require the Independent

Parliamentary Standards Authority to reduce the cost and change the schemes

of payment of Members of the House of Commons; and for connected

purposes. 

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and

consent of the Lords Spiritual and Temporal, and Commons, in this present

Parliament assembled, and by the authority of the same, as follows:—

1       

The Members’ Allowance

(1)   

After section 3A of the Parliamentary Standards Act 2009 there is inserted—

“3B     

The Members’ Allowance

The Independent Parliamentary Standards Authority must prepare a

scheme which would replace the payment of salaries and certain

5

allowances to MPs provided for in sections 4, 4A and 5 of this Act with

a Members’ Allowance, as required by the Parliamentary Standards

(Amendment) Act 2010.”.

(2)   

The Independent Parliamentary Standards Authority (“the IPSA”) must

prepare the first Members’ Allowance scheme before the end of the period of

10

8 weeks beginning with the day on which this Act is passed, and may prepare

revisions (“a revision”) at any time it considers appropriate.

(3)   

A Members’ Allowance scheme must—

(a)   

provide for the payment of a Members’ Allowance in the form of a

monthly payment to each MP, at a level determined on the basis of—

15

(i)   

the calculation in the Schedule to this Act (“the initial

calculation”),

(ii)   

the factors set out in paragraphs (b) to (d) of this subsection, and

(iii)   

the considerations referred to in subsection (4) of this section,

(b)   

make provision for the IPSA to review the level of the Members’

20

Allowance in time for the beginning of each new Parliament, taking

account of GDP growth, the GDP deflator, the retail prices index, the

 

Bill 60                                                                                                 

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Parliamentary Standards (Amendment) Bill

2

 

consumer price index and such other factors as the IPSA considers

appropriate,

(c)   

provide for a regional weighting of the Members’ Allowance according

to the distance of a Member’s constituency from Westminster, to a

maximum total value as set out in Step 5 of the initial calculation, and

5

(d)   

be administered with the objective that the total annual cost of

administering the scheme by the IPSA is no more than 2.5% of the total

value of payments made under the scheme in that year (“the

administration costs objective”).

(4)   

The IPSA should take into account that the Members’ Allowance must enable

10

an MP to perform their parliamentary, constituency and national duties when

making its final proposal of the level of the Members’ Allowance.

(5)   

Separate provision must continue to be made under section 5 of the

Parliamentary Standards Act 2009 (MPs’ allowances scheme) for the payment

of Staffing Expenditure and Constituency Office Rental Expenditure.

15

(6)   

The IPSA must set out in its proposed scheme guidance on the likely tax status

of the Members’ Allowance, having consulted HMRC for this purpose.

2       

Consideration of a Members’ Allowance scheme by the House of Commons

(1)   

The Speaker must lay a Members’ Allowance scheme (or revision) before the

House of Commons.

20

(2)   

When the scheme (or revision) is laid, the IPSA must publish in a way it

considers appropriate—

(a)   

the scheme (or revision), and

(b)   

a statement of its reasons for proposing that scheme (or revision).

(3)   

A Minister must by regulations made by statutory instrument bring a scheme

25

(or revision) proposed by the IPSA under section 2(1) into effect, including

making such transitional, transitory or saving provision as he considers

appropriate.

(4)   

A Minister must lay a draft of the regulations referred to in section 2(3) within

12 weeks of the Speaker laying the Members’ Allowance scheme (or revision)

30

before the House of Commons.

(5)   

A statutory instrument containing regulations under section 2(3) may not be

made unless a draft of the instrument has been laid before and approved by a

resolution of the House of Commons.

(6)   

If the regulations referred to in section 2(3) are not approved by the House of

35

Commons within four months of being laid, the IPSA must propose a revised

scheme under section 1 of this Act.

3       

The IPSA administration costs objective

(1)   

The IPSA must aim to limit the administrative costs of the Members’

Allowance scheme to no more than 2.5% of the total value of payments made

40

under the scheme in any given financial year (“the administration costs

objective”).

(2)   

The IPSA must make an annual assessment of whether it has met this objective

on the basis of the IPSA’s accounts for that year.

 
 

Parliamentary Standards (Amendment) Bill

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(3)   

If the administration costs objective has not been met, the IPSA must publish a

report explaining why it has not been met.

4       

Interpretation

In this Act—

“MP” means a Member of the House of Commons;

5

“the Minister” means the Leader of the House of Commons or the

Secretary of State.

5       

Short title

This Act may be cited as the Parliamentary Standards (Amendment) Act 2010.

 
 

4

Parliamentary Standards (Amendment) Bill
Schedule — The Initial Calculation

 

Schedule

Section 1

 

The Initial Calculation

1          

The IPSA must make its initial calculation of the Members’ Allowance as

follows.

Step 1

5

2          

Take the total cost of payments to MPs, associated payments and the cost of

administering those allowances paid to MPs under the relevant resolutions

of the House of Commons (except those relating to additional salaries for

office holders) in respect of the twelve months ending with 5 April 2010,

including—

10

(a)   

salary payments to MPs,

(b)   

employer’s national insurance contributions for MPs,

(c)   

basic employer pension payments for MPs,

(d)   

Personal Additional Accommodation Expenditure and the London

Costs Allowance,

15

(e)   

Travel Expenditure,

(f)   

Resettlement Grant,

(g)   

ex-gratia payments,

(h)   

an estimate by the IPSA of the amount that MPs did not claim but

were entitled to claim,

20

(i)   

an estimate by the IPSA of the total cost of administering the

payments listed in this Schedule, taking account of the staff costs and

associated overhead costs of both the House of Commons and the

IPSA,

(j)   

an estimate by the IPSA of that part of the costs associated with the

25

following committees and other bodies relevant to the payments

listed above—

(i)   

the Speaker’s Committee for the IPSA,

(ii)   

the Members’ Estimate Committee,

(iii)   

the Members’ Estimate Audit Committee,

30

(iv)   

the Administration Estimate Audit Committee,

(v)   

the Committee on Members’ Allowances,

(vi)   

the House of Commons Commission,

(vii)   

the Committee on Standards in Public Life, and

(viii)   

the Senior Salaries Review Body,

35

(k)   

an estimate by the IPSA of the cost of administration incurred by

MPs and their staff relevant to the payments listed in this Schedule,

and

(l)   

any other associated costs to be determined by the IPSA.

 

 

Parliamentary Standards (Amendment) Bill
Schedule — The Initial Calculation

5

 

Step 2

3          

Deduct 5% from the total calculated in Step 1.

Step 3

4          

Uprate this figure by taking into account certain indices to be determined by

the IPSA to arrive at an appropriate total figure for each financial year

5

during the remainder of the relevant Parliament.

Step 4

5          

Deduct a maximum of 2.5% from the total described in Step 3 to be set aside

for each financial year of the relevant Parliament for the IPSA administration

costs.

10

Step 5

6          

Deduct up to 17.5% from the total described in Step 3 to be used as a fund

for each financial year of the relevant Parliament for regional weighting,

Disability Assistance, Security Assistance, Contingency Payments and such

other allowances and payments not already mentioned in this Schedule to

15

be determined by the IPSA.

Step 6

7          

Divide the total arrived at in Step 5 by the number of seats in the House of

Commons to make the initial calculation of the Members’ Allowance for

each financial year of the relevant Parliament.

20

 
 

 

 
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Revised 20 October 2010