This is a House of Commons Committee report.
Date Published: 19 September 2023
1. One of the functions of the Members Estimate Committee, as set out in Standing Order No. 152D, is to “report to the House from time to time, and in any case not less than once a year, the provisions of the Resolutions of this House relating to expenditure charged to the Estimate for House of Commons: Members”, as codified and modified by the Committee. The Standing Order gives us the function of modifying the provisions of the Resolutions as we consider “necessary or desirable in the interests of clarity, consistency, accountability and effective administration, and conformity with current circumstances”, but does not empower us to create a new form of charge on the Estimate or to increase any rate of charge or payment determined by Resolution of the House.
2. A consolidated list of the provisions of the Resolutions of the House relating to expenditure under the Members Estimate in force as at 11 September 2023 is published as an Annex to this Report. Where monetary amounts are given, they are those applying at the start of the 2023/24 financial year.
3. Previous editions of this Report covered information in relation to use of stationery and pre-paid envelopes, insurance for Members, IT provision for Members and financial support for the cost of drafting Private Members’ Bills. As this expenditure is charged to the House of Commons Administration Estimate rather than the Members Estimate, it is no longer appropriate for these to be included in this publication, which is focused on resolutions relating to the Members Estimate.
4. Most of the consolidated list relates to Financial Assistance to Opposition Parties (Short Money and Representative Money), which is made available to assist opposition parties to carry out their parliamentary business. Given the nature of opposition work, Short Money and Representative Money can be used for party political purposes. In this context, Parliamentary business may be defined as:
5. It does not include political campaigning and similar partisan activities, political fundraising, membership campaigns or personal or private business of any kind. Each component used to calculate Short/Representative Money is uprated annually on 1 April by the consumer price index percentage of the previous December. For 2023/24 the CPI measure used was 10.5%.
1.1 In appropriate cases and in accordance with the recommendations of the Committee on Standards, the House may impose a penalty of withholding a Member’s salary for a specified period without suspending the Member.1 (26 June 2003)
2.1 In accordance with the decision of the MEC of 16 July 2018, the Resolution and the accompanying Schedule, published in previous editions, have been combined to provide greater clarity over the provisions relating to financial assistance to opposition parties. Some minor amendments have also been made to reflect decisions of the MEC, as indicated in the text. In addition, explanatory notes for each section are provided to aid interpretation of the Resolution.
2.2 Financial assistance to assist an opposition party in carrying out its parliamentary business shall be available if—
a) There are at that time at least two Members of the House who are members of the party and who were elected at the previous General Election after contesting it as candidates for the party, or
b) There is at that time one such Member who was so elected and the aggregate of the votes cast in favour of all the party’s candidates at that election was at least 150,000.
Explanatory note: This precludes the provision of Short money to parties which only meet the two Member threshold as a result of a by‐election or a Member defecting from another party. It would also prevent payment of Short money to a new political party, if it was established in the middle of a Parliament; and if a Member leaves a party during the Parliament, Short money would be stopped if the 2 or 1 Member condition is no longer met.
A party can also be eligible for Short money with only one Member, provided that the party as a whole gets the required number of votes at an election. This means that candidates elected without any party affiliation cannot receive Short money. It also means that a party whose Member or Members were elected at a by‐election are not eligible for Short money.
2.3 The amount of financial assistance which may be given under the provision set out at paragraph 2.2 above to any party in respect of the expenses incurred by it in any period shall be the aggregate of—
a) The first relevant amount for that period multiplied by the number of seats won by its candidates at the Election; and
b) The second relevant amount for that period multiplied by one two-hundredth of the number of votes cast for its candidates at that Election (rounded down to the nearest whole number).
This is subject to paragraphs 2.7 to 2.10 in the case of parties with no more than five Members of the House.
Explanatory note: The amount of Short money is based on two elements—one which relates to the number of seats won by the party at the last election, and one based on the number of votes received by the party at that election. The total amount a party receives is the combination of the two figures. Specific rules apply to smaller parties with fewer than five Members.
2.4 The first relevant amount shall be £21,438.33 and for any subsequent period of one year beginning with 1 April the first relevant amount shall be that amount for the previous period but increased by the appropriate percentage for the subsequent period; and the second relevant amount shall be £42.82 and for any subsequent period of one year beginning with 1 April the second relevant amount shall be that amount for the previous period but increased by the appropriate percentage for the subsequent period.
2.5 The appropriate percentage for any period is the percentage by which the Consumer Prices Index for the month of December immediately preceding that period has increased compared with the Consumer Prices Index for the previous December.
Explanatory note: For the 2023/24 financial year, opposition parties will receive £21,438.33 per seat. For the 2023/24 financial year, opposition parties also receive £42.82 multiplied by 1/200th of the number of votes they received at the last election (rounded down to the nearest whole number). As an example, if a party got 1,000,000 votes at an election held in the 2023/24 financial year they would get 1,000,000/200 * £42.82, which equals £214,100.
In each subsequent financial year the relevant amounts increase by a percentage set out in paragraph 2.5 (i.e. the CPI rate of inflation).
2.6 Financial assistance provided under the terms of the provision set out at paragraph 2.2 above shall be paid in arrears, at intervals of not less than one month.
2.7 Paragraphs 2.8 and 2.9 apply in the case of an opposition party where there are no more than five Members of the House who—
a) are members of the party, and
b) were elected at the previous General Election after contesting it as candidates for the party.
2.8 If the amount found under paragraph 2.3 above exceeds the amount corresponding to 150% of the relevant IPSA staffing budget for the period (“the maximum amount”), the amount of financial assistance given to the party under paragraph 2.2 in relation to that period must not exceed the maximum amount.
2.9 If the amount found under paragraph 2.3 is less than the amount corresponding to 50% of the relevant IPSA staffing budget for the period (“the minimum amount”), the amount of financial assistance which may be given to the party under paragraph 2.2 in relation to that period shall instead be the minimum amount.
2.10 For the purposes of paragraphs 2.8 and 2.9, “the relevant IPSA staffing budget” for a period is the standard annual staffing expenditure budget provided in relation to the period for a non-London area Member by the Independent Parliamentary Standards Authority.
Explanatory note: These rules apply to parties who had 5 or fewer Members elected at the last election—the rules continue to apply even if they gain further Members during the Parliament through by‐elections or defections.
Paragraphs 2.8 and 2.9 set an upper and lower limit on the amount of Short money that can be received by smaller parties. Smaller parties cannot receive more than 150% of the amount of the IPSA staffing budget allocated by IPSA to a non‐London Member (£236,170 for 2023/24), and cannot receive less than 50% of this amount.
Paragraph 2.10 sets out how to calculate the IPSA staffing budget referred to in paragraphs 2.8 and 2.9.
2.11 Without prejudice to the generality of the provision set out at paragraph 2.2 above, financial assistance towards travelling and associated expenses necessarily incurred by an opposition party’s spokesman in relation to the party’s parliamentary business shall be available if one of the conditions specified at paragraph 2.2 above is satisfied with respect to the party.
2.12 The maximum amount of financial assistance which may be given under the provision set out at paragraph 2.11 above to any party in respect of the expenses incurred in any period shall be such of the available amount for that period as may be allocated to the party in accordance with any apportionment as set out at paragraph 2.13 below.
2.13 The available amount for any period shall be apportioned between each of the opposition parties in the same proportion as the amount of financial assistance which may be given to each of them under the provisions set out at paragraph 2.2 above for that period or for any period forming part of that period.
2.14 The available amount for the period of a year beginning 1 April 2023 shall be £235,511.46. The available amount for any subsequent period is the available amount for the previous period, increased by the appropriate percentage (as specified at paragraph 2.5 above) for the subsequent period.
2.15 Any claims for financial assistance towards travelling expenses incurred by an opposition party spokesman in relation to the party’s parliamentary business as set out at paragraph 2.11 above are to be made to the Accounting Officer of the House; and a party claiming such assistance shall—
a) Furnish that Officer with a statement of the facts on which the claim is based, and
b) Certify to that Officer that the expenses which are claimed have been incurred exclusively in relation to the party’s parliamentary business in accordance with the provisions set out at paragraph 2.11 above.
Explanatory note: This section provides that where a party is eligible for financial assistance as a result of either the number of their Members or the number of votes received at the last election, then that party’s spokespeople will be entitled to claim travelling and associated expenses incurred in relation to that party’s parliamentary business.
The total amount available for travelling expenses for all opposition parties is £235,511.46 increasing in subsequent financial years based on CPI inflation. This is divided between all the parties who are eligible for Short money in the same proportion as the main allocation of Short money (i.e. if the main opposition party gets 60% of the total amount of Short money, they will be entitled to 60% of £235,511.46 in 2023/24).
The proportions are recalculated each year to account for changes in the entitlement of individual parties to Short money, but as the entitlement is based on the result of the previous election the proportions are unlikely to change unless one party loses its entitlement to Short money.
2.16 Financial assistance shall be available for the costs necessarily incurred in the running of the Office of the Leader of the Opposition. For the period of one year beginning with with 1 April 2023, the amount of financial assistance which may be given under this paragraph in respect of expenses incurred in that period shall be £998,817.35. For any subsequent period of one year beginning with 1 April the relevant amount shall be that amount for the previous period but increased by the appropriate percentage (as specified at paragraph 2.5 above).
2.17 Financial assistance under the provisions set out at paragraph 2.16 above shall be paid in arrears, at intervals of not less than one month.
2.18 Financial assistance provided to the official opposition under paragraph 2.2 may be used to supplement the funding provided under paragraph 2.16, but funding under paragraph 2.16 may not be used for any other purpose.
Explanatory note: This section provides that the Leader of the Opposition can claim £998,817.35 in 2023/24 for costs necessarily incurred in running the Leader’s office. This figure will increase in future years in line with CPI inflation.
Following the decision of the MEC of 22 January 2018, the official opposition may use funding provided under their main Short money allocation to supplement funding provided to cover costs incurred in the running of the office of the Leader of the Opposition. Funding provided specifically to cover costs incurred in the running of the office of the Leader of the Opposition can only be used for that purpose, and cannot be used to supplement the main Short money allocation.
2.19 Financial assistance shall be provided, with effect from 1 November 2005, to any opposition party represented by Members who have chosen not to take their seats and thus do not qualify to participate in the proceedings in Parliament, towards expenses wholly, exclusively and necessarily incurred for the employment of staff and related support to Members designated as that party’s spokesmen in relation to the party’s representative business.
2.20 The amount of financial assistance payable to a party shall be calculated and paid by analogy with paragraphs 2.2 to 2.15 above.
2.21 As soon as practicable, but no later than two months after 31 March each year, a party claiming financial assistance under any of the provisions set out at paragraphs 2.2 to 2.19 above shall—
a) furnish the Accounting Officer of the House with the certificate of an independent professional auditor, in a form determined by the Accounting Officer, to the effect that all expenses in respect of which the party received financial assistance during the period ending with that day were incurred exclusively in relation to the party’s parliamentary business, and
b) publish accounts in relation to all such expenses, audited by an independent professional auditor, in a form determined by the House of Commons Members Estimate Committee and in accordance with any requirements imposed by that Committee.
2.22 The requirements that may be imposed under paragraph 2.21(b) are such requirements as the Committee considers necessary or expedient for the purpose of enabling proper scrutiny of expenses in respect of which the party has received financial assistance under paragraph 2.2, 2.11, 2.16 or 2.19 above, which may in particular include requirements for the audited accounts—
a) to contain details of such expenses during the period to which the report relates (“the reporting period”),
b) in the case of the Official Opposition—
i) to state the total remuneration (including benefits in kind) paid in respect of persons employed, or otherwise engaged, to assist the party (“relevant persons”) during the reporting period
ii) to state each relevant person’s pay band, by reference to the pay bands specified by the Committee,
iii) if a relevant person is appointed to assist a particular Member, to identify that Member, and
iv) to identify each relevant person whose remuneration exceeds an amount specified by the Committee and to state the amount of that remuneration, and
c) in the case of any other opposition party, to identify the number of persons employed, or otherwise engaged, to assist the party during the reporting period who are within each of the pay bands specified by the Committee.
2.23 If the requirements imposed by paragraph 2.21 above have not been complied with within the time specified, no further financial assistance under the provisions set out at paragraphs 2.2 to 2.19 above shall be paid until those requirements have been complied with.
Explanatory note: This section requires parties in receipt of Short money or representative money to get an auditor to independently certify that all expenses for which Short money has been claimed have been incurred exclusively in relation to the Party’s Parliamentary business.
Parties in receipt of Short money or representative money must also publish independently audited accounts. The MEC has the power to determine what form the accounts should take and to impose requirements in relation to the accounts.
The section also gives examples of the types of requirements that the MEC can impose in relation to reporting on Short money or representative money. The list is not exhaustive–the MEC can impose whatever requirements it considers necessary for enabling proper scrutiny of how money is spent. The list in Paragraph 2.22 subsections (a) to (c) indicates the kinds of requirements that the MEC might be expected to impose (and are therefore implicitly agreed by the parties as being acceptable). It also indicates that greater detail may be required from the Official Opposition in relation to reporting how Short money is spent, as the party in receipt of the largest proportion of the total.
2.24 Financial Assistance: Official Opposition
a) The identification of each person at least 50% of whose salary is, or has at any time during the financial year in question been, paid for from funds received under paragraph 2.2 (if they have worked for a named Member, together with the name of that Member) and either
i) the total remuneration earned by that person if in excess of the specified threshold or, if not,
ii) the relevant pay band.
b) The total claimed under paragraph 2.2, showing a breakdown between
i) the total direct staff costs identified in (a) above met from funds received under paragraph 2.2 and
ii) other costs, indicating the principal headings of such expenditure.
2.25 Financial Assistance: Other parties
a) The total number of people at least 50% of whose salary is, or has at any time during the financial year in question been, paid for from funds received under paragraph 2.2 or paragraph 2.19, if they have worked for a named Member or for the parliamentary party as a whole, and the relevant pay band.
b) The total claimed under paragraph 2.2 or paragraph 2.19, showing a breakdown between
i) the total direct staff costs identified in (a) above met from funds received under paragraph 2.2 or paragraph 2.19 and
ii) other costs, indicating the principal headings of such expenditure.
Explanatory note: Under this section, the opposition must identify by name anyone working for the party where 50% or more of their salary is paid from Short money. If they have worked for a particular Member, that Member must also be named. Alongside their name, the opposition must also indicate their pay band, or their total pay if this is over a specified amount (detailed in paragraph 2.28).
The opposition must also provide a breakdown of the total amount of Short money received, showing the amount used for the staff costs covered by sub‐section (a) above, and other categories of expenditure
Other opposition parties, including parties in receipt of representative money under paragraph 2.19, must identify by name anyone working for the party where 50% or more of their salary is paid from Short money or representative money. Alongside their name, parties must also indicate their pay band. As with the official opposition, other opposition parties must provide a breakdown of how the total amount of Short money or representative money claimed is spent, showing the amount used for the staff costs covered by paragraph 2.25 sub‐section (a) above, and other categories of expenditure.
2.26 Financial Assistance: Office of Leader of the Opposition
a) The identification of each person at least 50% of whose salary is, or has at any time during the financial year in question been, paid for from funds received under paragraph 2.16, and either
i) the total remuneration earned by that person if in excess of the specified threshold or, if not
ii) the relevant pay band.
b) The total claimed under paragraph 2.16, showing a breakdown between
i) the total direct staff costs identified in (a) above met from funds received under paragraph 2.16 and
ii) other costs, indicating the principal headings of such expenditure.
Explanatory note: The requirements for publication in relation to the funding for the Leader of the Opposition’s office are the same as for the main Short money allocation to the Official Opposition. Following a decision of the MEC on 22 January 2018, the Official Opposition may produce a single summary account which identifies the split in staff costs between Parliamentary business and the Leader of the Opposition’s Office.
2.27 Financial Assistance: Travelling expenses
The total claimed under paragraph 2.11.
2.28 Reporting requirements: Definitions
The pay bands and threshold amount referred to above shall be those applicable for the year in question to Ministers’ special advisers, as determined by the Accounting Officer of the House.
Explanatory note: This section indicates that the pay bands that should be used in opposition parties’ accounts are the same ones used by ministerial special advisers. For the most recent year for which figures are available (2022/23), the pay bands are:
PB1 ‐ £40,500 ‐ £53,000
PB2 ‐ £57,000 ‐ £84,000
PB3 ‐ £73,000 ‐ £102,000
PB4 ‐ £102,000 - £145,000
The threshold at which total remuneration is required to be published is £70,000. This information is provided on gov.uk.
2.29 The cost of providing financial assistance shall be borne on the House of Commons: Members Estimate. (26 May 1999; MEC, 15 March 2004; MEC, 21 January 2013, 23 March 2016; 7 July 2016).
Explanatory note: This section establishes that the costs of providing Short money will fall on the House of Commons: Members Estimate.
2.30 In the case of any year in which there is a General Election—
a) The period ending immediately before the date of the Election, and
b) The period beginning with that date shall be treated for the purposes of the provisions set out at paragraphs 2.2 to 2.19 above as separate periods.
2.31 In relation to any such separate periods—
a) The first relevant amount and the second relevant amount for the period ending immediately before the date of the General Election shall be apportioned according to the number of days in that period as a proportion of the total number of days in the year in question, and
b) The available amount for the period beginning with the date of the General Election shall be a proportionate part of the available amount for the year in question.
2.32 In relation to any such separate period ending immediately before the date of the election, the provisions set out at paragraph 2.21 above shall have effect as if the 31 March referred to were a reference to the day immediately before the date of the Election.
Explanatory note: Under this section, the financial year in which an election takes place is split into two separate “periods” for the purposes of Short money or representative money–one running up to the election, and one running from the election. This is necessary to account for changes in different parties’ entitlements for Short money as a result of the election.
The amount of Short money or representative money available is calculated based on the proportion of the year that takes place before or after the election. For example, if the election took place exactly halfway through the financial year, then the amounts available would be reduced by half.
This section also requires parties to report on spending for the period running up to an election in the same way as they would at the end of a financial year, with the dates adjusted accordingly. For example, in 2019/20, the first period ran from 1 April 2019 to 11 December 2019, with the audit for the period due by 11 February 2020.
3.1 Pensions for Members are provided through the Parliamentary Contributory Pension Fund. The House of Commons Members Fund, established in 1939, provides discretionary grants to former Members and their dependants.
3.2 Historically, income to the Fund has been derived from individual contributions from Members of the House of Commons (£24 per annum),2 an Exchequer contribution paid from the Members Estimate (a maximum of £215,000 per annum) and the return on investments. Under the provision of the House of Commons Members Fund Act 2016 the Trustees can suspend or increase Member contributions up to a maximum of 0.2% of a Members ordinary salary. From April 2022 and April 2023, the Trustees applied a cost of living increase to the member contribution rate (currently £26.40 per annum). The House of Commons Members Fund Act also removed the Exchequer contribution.
4.1 Those Members who have chosen not to take their seats and thus do not qualify to participate in the proceedings in Parliament may use the facilities within the precincts of the House and the services of departments of the House, and may claim support for their own costs and the allowances relating to travel within the United Kingdom for Members, their families and staff. (18 December 2001)
4.2 There shall be a Committee of the House, called the House of Commons Members Estimate Committee. The Members of the House of Commons Members Estimate Committee shall be those Members who are at any time members of the House of Commons Commission pursuant to section 1 of the House of Commons (Administration) Act 1978; the Speaker shall be chairman of the Committee and three shall be the quorum of the Committee. (29 January 2004, and amended 22 January, 3 March and 30 April 2009, and 20 March 2013)
4.3 The functions of the Committee shall be—
a) to agree the Estimates for the House of Commons: Members;
b) to codify and keep under review the provisions of the resolutions of this House relating to expenditure charged to the Estimate for House of Commons: Members;
c) to modify those provisions from time to time as the committee may think necessary or desirable in the interests of clarity, consistency, accountability and effective administration, and conformity with current circumstances;
d) to provide advice, when requested by the Speaker, on the application of those provisions in individual cases;
e) to carry out the responsibilities conferred on the Speaker by the Resolution of the House of 5 July 2001 relating to Members’ Allowances, Insurance, etc.
4.4 The provision set out at paragraph 4.3(c) above does not empower the Committee—
a) to create a new form of charge on the Estimate for the House of Commons: Members; or
b) to increase any rate of charge or payment determined by resolution of the House. (29 January 2004)
4.5 The Committee shall report to the House from time to time, and in any case not less than once a year, the provisions of the Resolutions of the House relating to expenditure charged to the Estimate for House of Commons: Members, as codified and modified pursuant to the provisions set out at paragraph 4.3 above. (29 January 2004)
4.6 There shall be a select committee, called the Committee on Members’ Expenses, to consider such matters relating to Members’ expenses as may be referred to it by the House. The Committee shall consist of eight Members. (22 January 2009; 3 March 2009; 7 July 2011)
Mr Speaker, in the Chair
Nickie Aiken
Deidre Brock
Sharon Hodgson
Penny Mordaunt
Lucy Powell
Sir Charles Walker
Draft Report (Consolidated list of provisions of the Resolutions of the House relating to expenditure charged to the Estimate for House of Commons: Members as at 11 September 2023), proposed by the Chairman, brought up and read.
Ordered, That the Chairman’s draft Report be read a second time, paragraph by paragraph.
Paragraphs 1 to 5 read and agreed to.
Annex agreed to.
Resolved, That the Report be the Second Report of the Committee to the House.
Ordered, That the Chair make the Report to the House.
Adjourned to a day and time to be fixed by the Chair.
1 As explained by the Committee on Standards (HC 724 2012–13, para 25), this penalty has never been used. The Committee may recommend various other penalties including suspension from the service of the House for a specified number of sitting days (during which time the Member receives no salary and must withdraw from the precincts of the House.)
2 17 May 1961