Overview

View the latest budget amounts for the current financial year, budget summaries, and staffing budget guidance.

You can also complete IPSA Online tasks for running reports, and access the salary calculator tool.

Scheme rules

Below is a summary of the budget types, areas or eligibility, and the budget amounts available for 2020-21.

Budget: Accommodation – rental costs

London area: £23,010

Outside London: £16,120

Budget: Accommodation – associated costs only

Non-London MPs: £5,410

Budget: Accommodation – rental supplement for MPs with caring responsibilities

Per eligible dependant, per year (max three supplements): £5,435

Budget: Office costs

London MPs : £28,800

Non-London MPs: £25,910

Budget: Staffing costs

London MPs : £188,860

Non-London MPs: £177,550

Budget: Winding-up costs

London MPs : £57,150

Non-London MPs: £53,950

Budget: London Area Living Payment (LALP)

London MPs : £4,090

Budget: Additional LALP

London Area MPs of 23 outer London constituencies: £1,450

Below is a summary of the budget types, areas or eligibility, and the budget amounts available for 2021-22

Budget: Accommodation – rental costs

London area: £23,290

Outside London: £16,320

Budget: Accommodation – associated costs only

Non-London MPs: £5,480

Budget: Accommodation – Rental accommodation uplift for dependants

Per eligible dependant, per year (max three supplements): £5,500

Budget: Office costs (including £1,250 to cover homeworking allowance)

London MPs : £30,400

Non-London MPs: £27,470

Budget: Staffing costs

London MPs : £190,750

Non-London MPs: £179,330

Staffing costs – Covid uplift

London MPs : £27,680

Non-London MPs: £24,970

Budget: Winding-up costs

London MPs : £57,150

Non-London MPs: £53,950

Budget: London Area Living Payment (LALP)

London MPs : £4,140

Budget: Additional LALP

London Area MPs of 23 outer London constituencies: £1,470

MPs may apply to us for a contingency payment where:

  • they have incurred a cost, or liability for a cost, which is not covered by the Scheme, but which they consider to be in support of their parliamentary functions

  • their spending under a particular budget has exceeded or may exceed the budget limit for the year and they consider this to be the result of exceptional circumstances

MPs should apply, where possible, for a contingency payment before they incur the costs which may take them over budget, rather than incurring the costs and then applying. [10.9]

MPs can claim costs for staff supporting them in performing their parliamentary functions. [7.3]

However, the MP remains the employer of those staff at all times. [7.2]

Note that when referring to “staff”, this includes apprentices (where those apprenticeships meet the standards of the National Apprenticeship Service), and employed interns, except where stated otherwise. [7.1]

For more information about the claim limits and the staffing costs you can claim, visit Staffing costs claim limits and Staffing costs you can claim .

Exceeding your staffing costs budget

You should not make arrangements or commitments which will take you over your staffing costs budget limit, as we will not pay any claims or requests for payment once you’ve used up your annual budget.

You can use the Staff Budget 2020-21 Monthly and Yearly Salary Calculator to help with staffing budgets. [7.17]

Using IPSA Online

IPSA Online provides three reports to show you which claims and direct payments have been made. These are:

  • MPD Expenses Details     

  • MPD Direct Payments by MP

  • MPD Direct Payment and Expenses Posted

These reports are useful for seeing details of claims and payments that you have made previously. They do not show you how they are allocated against your budgets, or any corrections, so cannot be used to show your total spend against your budgets.

  1. Note!

  2. Step1

    Select the Main menu tab.

  3. Step2

    Select Reports.

  4. Step3

    Select the report you wish to open.

    • MPD Expenses Details shows the details of all claims you have made, either via reimbursement claim or on the IPSA payment card, including those that are in progress

    • MPD Direct Payments by MP shows the details of all direct payments made by IPSA on your behalf, such as rental payments to a landlord, subscription fees to pool staffing services, and bills for approved stationary suppliers like Banner

    • MPD Direct Payment and Expenses Posted shows you the details of all claims, both expenses claims and direct payments, that have been approved and posted against your budgets – it does not show you claims in progress

  5. Step4

    These three reports have a selection criteria box at the top that allows you to set the parameters of the results.

    The most useful parameter is setting the time period you wish to see claims and payments for. This will either be by payment period or by transaction date.

    Some reports are locked. In these cases, the options will be greyed out and you will be unable to change their parameters.

  6. Step5

    Each column shows you information about the claim or payment line.

    When you begin using the reports, the best way to understand how they work is to run a search without any filters or criteria.

    To do this select Search. Over time you may wish to filter the results.

  7. Step6

    Each column in a report can be filtered. This is done by typing in what you wish to filter and selecting Search again.

    You must type exactly what you are searching for.

  8. Step7

    Alternatively use wildcards (*) to show where letters and words are missing.

    For example:

    • *Hotel* will bring back all types of hotel.

    • *Const* will show “Between London and constituency”, “Within constituency” etc

  9. Step8

    To remove a filter, simply delete the text and either select Search or enter different text and select Search.

  10. Step9

    All direct payments are posted against your budgets and become part of the spend shown on your dashboard once they are paid, while claims go through our validation process.

    Claims are first automatically review by IPSA Online, and then either processed for immediate payment or reviewed by one of our validation team.

    Once a claim is posted against your budget its status will change from “for approval” to “posted”. Claims that are “for approval” are waiting with either IPSA, an MP, or a member of an MP’s staff.

    This can only be seen on the MPD Expenses Details report, the other two reports only show expenditure that has been posted against your budgets.

  11. Step10

    The report can be exported by selecting Export at the bottom of the screen. Once selected you will be asked to select the format of the report. This will then download the data.

  12. Step11

    The reports are a great way of seeing the granular detail, however when you are looking for patterns and trends the Analyzer is a quick and user-friendly way of analysing your data.

    Having run a report, select Analyzer.

  13. Step12

    Use the three drop downs on the left-hand side to select the type of data you wish to view and how the data is distributed.

  14. Step13

    Use the chart icons to select how the data will be displayed.

IPSA Online provides financial reports that are useful for budgeting.

They show expenditure against each budget, including any year-end journals, repayments or requested changes.

These reports are:

  • Breakdown by Expense Type

  • Business Costs Breakdown

These reports are useful for monitoring your spend on accommodation and office costs as they show you the total expenditure against each budget including both claims and direct payments.

Please be aware that these reports do not show your real-time expenditure. Claims will only be included once they are fully processed by IPSA and posted.

  1. Note!

  2. Step1

    If you want to view expenditure in the current financial year then remain on your current Dashboard as IPSA Online opens, or select the Main menu tab, Information Pages and then select a Dashboard from a previous financial year to see details of your expenditure in that financial year.

  3. Step2

    When you are on the dashboard for the financial year you wish to view, scroll down to MPD IP Budget v Expenditure and scroll across so you can see the column headed Links to reports.

  4. Step3

    Select a report under Links to reports.

    • Breakdown by category (This Row) – this provides a breakdown of expenditure against the budget of that row broken down by Expense type

    • Breakdown by category (All Rows) – this provides a breakdown of expenditure against all budgets broken down by Expense type

    • Business Costs Breakdown (This Row) – this provides a breakdown of expenditure against the budget of that row broken down by individual journal entries, including all claims, direct payments, corrections and year-end changes – this is the general ledger

    Please be aware that Business Costs Breakdown (This Row) is a financial report which is used for bookkeeping.

  5. Step4

    The Breakdown by Expense Type options display the budget available to spend in the Budget column, and the spend against it – broken down by Expense Type – in the Spend column.

    The total budget available and current spend are displayed for each budget in the row that states that budget. This row is beneath the breakdown.

    For example, in the screengrab below the current spend on Cleaning Services is £71.71, Equipment – purchase is £397.59, and Stationery and Printing is £4,653.97.

    This totals a current spend of £5,123.27 against a budget of £28,800, with £23,676.73 remaining available.

  6. Step5

    The Business Costs Breakdown option displays each business cost posted against your budget, as well as any corrections, year-end changes or credit notes that have been actioned.

    As it only includes expenditure that has been posted, it will only include claims that have had all their claim lines processed by IPSA.

    You may find our Glossary of financial terms useful for understanding the kind of year-end changes and information shown on this report.

  7. Step6

    Each column displays information about the claim or payment line.

    You can find a description of each column heading in our Glossary of report terms.

    These columns can be used to filter the report. This is done by typing what you wish to filter and selecting Search.

    You can either type exactly what you are searching for, or use wildcards (*) to show where letter or words are missing.

    For example: if you enter *Hotel* in the Expense Type (T) column, it will return all types of hotel.

  8. Step7

    No entry is ever deleted or removed from the Business Costs Breakdown report. Instead, when a change is made the original line is reversed by a new line that is identical but for the inverse amount.

    For example, in the screengrab below, claim 60051909 incorrectly states the journey was between London and Birmingham when it should state London and Bristol.

    This has been corrected by the claim being reversed with a journal line that is identical but for the amount -£30, and a new journal line being entered for £30 with the correct information on it.

    This is how you will see a correction made if you informed us of an error by completing a Direct Payment Correction Form. Although, please be aware these can take up to a few weeks to process.

  9. Step8

    When you receive a refund from a supplier for a direct payment that has already been made, this will be displayed on the Business Costs Breakdown report.

    For example, the screengrab below demonstrates how it would appear if you were charged £118.45 for stationery by Banner, but then you had returned it and they had refunded you.

    There is a direct payment for £118.45 which is the original charge and then another direct payment line for -£118.45 which is the refund.

    This results in the total spend against your budget for this stationery being £0.

  10. Step9

    When you agree to repay IPSA for a claim against your current budget by actioning a credit note, then this credit note is displayed on the Business Costs Breakdown report.

    This does not show whether you have repaid IPSA or not, it just reduces the spend against your budget by the amount you have agreed to repay.

    To see what you owe IPSA, you should check MPD Repayments Due on your dashboard.

    For example, in the screengrab below, claim 60051813 is for a £50 flight and was posted against the MP’s budget. However, the MP has agreed to repay it by actioning a credit note.

    This is shown by credit note 70002724 of -£50. Credit note 70002724 means that £50 less has been spent against the MP’s budget because they will repay IPSA £50 for the claim.

    The result is that £0 was claimed against the budget for the flight.

  11. Step10

    If as part of the year-end process a cost is accrued, this is shown on the Business Costs Breakdown.

    An accrual is when the costs for goods or services relate to one financial year, but where the payment is made in the next.

    For example, in the screengrab below the cost for trains in March have been claimed in April. As the costs related to March (which is in the previous financial year) they have been accrued.

    This is shown by the expense claim in April for £120 being reversed with journal 200002710 for -£120, leaving the amount in the 2020-21 financial year as £0.

    A new journal, 200002709, is then entered on the Business Costs Breakdown for the previous financial year for £120. The cost of the expenditure is therefore in the financial year to which it relates.

    Please be aware that during the year-end process these two journals are processed separately by our finance team, so will not necessarily appear simultaneously.

  12. Step11

    If as part of the year-end process a cost is prepaid, this is shown on the Business Costs Breakdown.

    A prepayment is when costs for goods or services relate to one financial year but were paid in the previous financial year.

    For example, in the screengrab below the cost of council tax for April has been claimed March. As the cost relates to April, which is in the next financial year, this has been prepaid.

    This is shown by the expense claim, 60051903, in March for £106.73 being reversed with journal 200002713 for -£106.73, leaving £0 of expenditure in the 2019-20 financial year.

    A new journal, 200002714, is then entered on the Business Costs Breakdown report in the next financial year for £106.73. The cost of the expenditure is therefore in the financial year to which it relates.

    Please be aware that during the year-end process these two journals are processed separately by our finance team, so will not necessarily appear simultaneously.

  13. Step12

    If only part of an expense claim is changed or moved, there will only be a part-reversal of the original claim.

    For example, in the screengrab below the cost of £2,500 for April and March’s rent has been paid in March.

    Because £1,250 of the rental payment relates to the next financial (the rent for April) this portion has been reversed in 2019-20 financial year with journal 200002711 for -£1250.

    This leaves just the £1,250 portion relating to March in the 2019-20 financial year.

    A new journal, 200002712, is entered on the Business Costs Breakdown in the next financial year for £1,250. The cost of expenditure is therefore in the financial year to which it relates.

    Please be aware that during the year-end process these two journals are processed separately by our finance team, so will not necessarily appear simultaneously.

  14. Step13

    The report can be exported by selecting Export at the bottom of the screen.

    Once selected you will be asked to select the format of the report.

    If you select Browser then it will export all journals as you can see them on IPSA Online, and if you select Pivot then it will export them as a pivot table.

  15. Step14

    The reports are a great way of seeing the granular detail, however when you are looking for patterns and trends the Analyzer is a quick and user-friendly way of analysing your data.

    Having run a report, select Analyzer.

The Payroll Modelling Report (previously Staffing Budget Report) can be used to monitor and forecast your staffing budget.

This report also details your Staff Covid Spend, it does not include any forecasting.

This can be locked so only certain staff (MP and Payroll Proxy) can view it.

  1. Note!

  2. Step1

    Select the Main menu tab.

  3. Step2

    Select Common.

  4. Step3

    Select Report ordering.

  5. Step4

    Select MP Payroll Modelling report.

  6. Step5

    You do not need to enter any information into the General parameters, Fixed parameters or Printer parameters sections.

    In the Open parameters section, enter a number in the To Period field, for the month’s report you require.

    This should be the year followed by the month. The number of the month is based on the financial year.

    For example:

    • 202101 = April 2021

    • 202102 = May 2021

    • 202012 = March 2021

    To produce a report with forecasting, you need to put the last pay period which you have been paid for in the To Period field.

  7. Step6

    Select Save and select OK on the pop-up box.

  8. Step7

    Select Your ordered reports from the bottom of the screen to display a list of saved reports.

  9. Step8

    Check the status of the report you have just ordered.

    If the status is Running, select Refresh at the bottom of the screen until the status is Finished.

  10. Step9

    Select the icon on the left of the report to download it.

    The report will be downloaded as an Excel file.

    A pop-up box may appear and you will need to select Open file for the spreadsheet to open.

  11. Step10

    Staff budget spend and Forecast will open.

  12. Step11

    Select the Covid-19 Budget tab on the spreadsheet to display your spend.

    This tab does not provide any forecasting.

Downloads

Guidance

Report terms

Transaction number – this is the unique number of a transaction made against your budgets. This includes claim numbers, direct payment numbers and the numbers of other journals, such as those of credit notes and accruals. This is not unique to an individual line, so multiple lines could have the same transaction number.

Claim number – this is a type of transaction number unique to each claim form you submit. On the Business Costs Breakdown report, this will appear under "Transaction number", while on MPD Expenses Details this will appear under "claim number". The claim number begins with "600".

Direct payment number – This is a type of transaction number unique to each direct payment made. On the Business Costs Breakdown report, this will appear under "Transaction number". On the MPD Direct Payments by MP report, this will appear under "Direct Payment Number". Direct payments include rent paid to landlords, as well as payments for bills from other direct suppliers such as Banner, XMA and the Chambers Travel Office.

Claim line – this is the line number of an individual line of a claim. The first line is 1, the second line is 2, and so on. All individual claim lines share the same claim number.

Transaction date – this is the date that an item of spend was posted against your budget – unless the spend has not yet been approved, in which case it is the date you submitted the claim. If the item has the status "posted" on the MPD Expenses Details Report, or is included in your Business Costs Breakdown, then it has been posted against your budget.

Line date – this is the date the expense was incurred. For a reimbursement claim, this is the date that was selected as the expense date. For a payment card claim, it is the date the spend was made on the IPSA-provided payment card.

Claim line submitted date – the date you submitted the claim line to IPSA.

Supplier – to whom the payment was made.

Status – the status of a claim on MPD Expenses Details report shows whether an initiated claim is:

  • a "draft"– which means it has not been submitted)

  • "for approval" – which means it is waiting with yourself or IPSA, or

  • "posted" – which means it has been approved by IPSA and will be paid and allocated against your budget

Posted – an item of expenditure has been "posted" when it has been allocated – or “posted” – against your budget. Once posted, an item of expenditure will be included in the spend shown on your dashboard. Claims are only posted once all claim lines have been processed by IPSA.

Expense Type – the category that an item of expenditure falls under. When submitting claims this is selected by whoever made the claim. There is a complete list of all expense types as part of our evidence requirements.

Financial terms

Accruals accounting – this is the main method of accounting used by central government, including IPSA, as required by HM Treasury. Accruals accounting:

  • counts money as being spent when an expense was incurred, irrespective of when the cash was paid, and

  • revenue as received when earned, irrespective of when the income was received

For example, a fuel bill for the period January to March received and paid in April, will be recorded as expenditure for the period January to March.

Budget – the amount of money allocated for a specific purpose. The amount of each budget and its purpose is outlined in the Scheme of MPs' Staffing and Business Cost.

Year-end – in the accountancy world, organisations need to prepare their complete accounts each year. The "year-end" refers to the day the financial period ends. For IPSA this is the 31 March.

Year-end process – this is the process at the end of the financial year which allows any costs that have been paid in a different financial year to the one in which they were incurred to be moved into the correct financial year.

Financial year – the government financial year in the UK runs from 1 April to 31 March. This is the period that your budgets run between, meaning they will renew on 1 April each year. In IPSA Online the financial year that runs from 01/04/2020 to 31/03/2021 is referred to as "2020".

Period – these are the months of the financial year. They run from April to March. April is period 1 of the financial year. IPSA also uses period 13 and 14 where necessary, and in common with other organisations, to reflect adjustments needed for the financial year after the end of period 12 (March).

Pre-payment – costs for goods or services that relate to one financial year, but for which the payment was made in the previous financial year. If a claim is pre-paid then the cost of the claim is moved into the next financial year. For example, if you paid Council Tax in March, but it related to April, then this expenditure is a pre-payment.

Accrual – costs for goods or services that relate to one financial year, but for which the payment is made in the next. If a claim is accrued then the cost of a claim is moved back into the previous financial year. For example, if you paid Council Tax in April, but it related to March, then this expenditure is an accrual.

Repayment – when a cost or service is claimed, but subsequently repaid to IPSA.

Credit note – a tool used by IPSA to establish or recognise debt on IPSA Online which returns spend against your budget (crediting the budget). When you action a credit note you recognise there is debt owed to IPSA which is then credited against your budget.

Journal – a journal entry is an act of keeping or making records of any transactions. The journal entry can consist of several recordings, each of which is either a debit or a credit. If, for example, a processed cost was moved from the travel budget to the accommodation budget, then the accommodation budget would receive debit and the travel budget would receive credit.

Accrued income – this is income earned in one financial year and not yet paid to IPSA, but will be paid to IPSA in the next financial year. For example, subletting income earned in one financial year, but not received until the next.

Deferred income – this is income earned and paid to IPSA in one financial year where the service will be carried out in the next financial year. For example, subletting income paid in advance in one financial year, but for services provided in the next.

Overspend – when expenditure exceeds an allocated budget.

Expenditure – money spent on goods or services.

The funds available to MPs are broken down into separate budgets:

Staffing

The staffing budget is largely made up of payroll costs, which are paid directly to the staff MPs employ to assist them in carrying out their duties in Westminster and the constituency. The budget covers all payroll costs (salaries, employers' national insurance contributions and pension contributions). It also covers pooled staffing services and expenses for volunteers. Staffing costs account for approximately three-quarters of the total spend by an MP on average.

Office costs

The office costs budget allows MPs to buy everything they need to run their office and constituency surgeries – this includes costs such as rent, business rates, equipment and stationery.

Travel and subsistence

The travel and subsistence budget covers travel between the constituency and Westminster, travel within the constituency and elsewhere on parliamentary business. It also covers some limited hotel costs for MPs and their staff.

Accommodation

The accommodation budget covers the cost of overnight accommodation in either London or the constituency. This can cover hotels, a rented property or utility bills etc on a property the MP owns. MPs who represent a constituency in the London Area are not entitled to claim from this budget.

Start-up

The start-up budget is provided to MPs in their first year of office, covering the costs incurred in starting up an office, such as buying office furniture.

Winding-up

The winding-up budget covers all costs incurred in the two months after someone ceases to be an MP, to help them wind up their office (for example, payroll costs, removing furniture).

Miscellaneous

There are also additional one-off costs paid from the miscellaneous budget. This covers other parliamentary costs which are not covered by other parts of the rules, but which have been approved by IPSA. It also covers any residential accommodation costs incurred in the two months after an MP has left Parliament.

Accommodation costs (for MPs claiming for rental payments)

Renting in the London area: £23,290

Non-London area: £16,320

Accommodation costs – associated costs only (for MPs who own their own homes)

£5,480

Office costs

London area: £30,400

Non-London area: £27,470

Staffing costs

London area: £190,750

Non-London area: £179,330

Additional staffing funding for Covid-related workload

London Area: £27,680

Non-London Area: £24,970

Winding-up costs

London Area: £57,150

Non-London Area: £53,950

Start-up supplement

£6,000

London Area Living Payment (LALP) (for eligible MPs on a monthly basis)

£4,140

Additional London Area Living Payment (for eligible MPs on a monthly basis)

£1,470

Accommodation costs – uplift for MPs with dependants (for MPs claiming for rent). Maximum of three uplifts allowed.

Per eligible dependant per year: £5,500

Travel and Subsistence

There is no maximum budget as MPs travel from different locations. Please note that any first-class travel is capped at the cost of an "anytime standard open" ticket.

Please refer to the rules under the Scheme for full details about the budget and eligibility criteria.

IPSA will pro-rate budgets when they are made available to MPs at a date other than the start of the financial year or are closed before the end of the financial year.

This applies to all capped budgets provided by IPSA.

Budgets will be pro-rated when:

  • an MP is elected during the financial year

  • an MP leaves their seat during the financial year, whether at an election or for another reason

  • an MP moves between hotels, associated costs and rented accommodation

  • an MP registers a dependant

Where a budget must be pro-rated, the adjusted budget will be pro-rated by day.

This means the MP will receive 1/365 of the annual budget for each day they are drawing the budget. In leap years the budget will be divided by 366.

In the past, IPSA has chosen to increase MPs’ pro-rated budgets at general elections. This is because MPs may take or leave office unexpectedly at elections and because MPs are not expected to spend at an even rate throughout the year.

Increasing MPs’ budgets in this way, whether at elections or in other circumstances where an MP leaves office, will be considered on a case-by-case basis. MPs will be informed of election-year budgets in IPSA’s election guidance at the earliest opportunity.

Table showing MP’s budgets for 2021-22 and the pro-rated daily budgets.

Example scenario

An MP leaves their seat, for whatever reason, on June 1, 2022.

They receive budget for the days served in office in April (30) and May (31) for the 2021/22 financial year.

This means their pro-rated budgets will be 1/365 of each budget multiplied by the 61 days served.

If the MP rents outside London, their pro-rated rental accommodation budget would be £2,693.76 (£44.16 multiplied by 61 days).

If they are a non-London Area MP, the pro-rated office costs budget would be £4,330.39 (£70.99 multiplied by 61 days).

IPSA will pro-rate budgets when an MP takes or leaves office.

What happens when an MP is elected during the financial year?

When an MP takes office, their budgets will be pro-rated from the day after the election or by-election (except in the case of the rental accommodation budget, see below).

In this circumstance, the MP will receive 1/365 of each capped budget for each remaining day of the financial year.

What happens when an MP leaves their seat during the financial year?

When leaving office at an election an MP’s budgets will be pro-rated to include polling day.

When leaving for another reason, they will be pro-rated to the last day the MP is in office – for example, the day of resignation, or the day they are removed from office by a recall petition.

In each circumstance, when an MP leaves office they will receive 1/365 of each capped budget for each day of the financial year they were in office.

IPSA may increase these amounts to provide extra flexibility, for example where an MP leaves their seat unexpectedly.

IPSA will pro-rate accommodation budgets in several circumstances.

What happens if an MP moves between hotels and rented accommodation?

When moving into rented accommodation the accommodation budget will be pro-rated from the day the rental contract starts.

The MP will receive 1/365 of their annual budget for the rental accommodation budget for each remaining day of the financial year (unless the rental contract ends before then).

When leaving rental accommodation, the budget will be pro-rated to the day the rental contract finishes.

The MP will receive 1/365 of their annual budget for the rental accommodation budget for each day of the financial year they were in rental accommodation.

For months with less than 31 days, 1/365 worth for each day of the month will be less than 1/12 of the budget.

This can mean that MPs paying rent monthly can overspend due to the pro-rating of the accommodation budget.

IPSA will adjust the pro-rated accommodation budget to ensure that MPs’ budgets are not exceeded due purely to the pro-rating of rental costs.

Where there is a gap of a few days between an MP moving from one rental property to the next, IPSA may choose not to pro-rate the rental accommodation budget. This will be decided on a case-by-case basis.

The hotel accommodation budget is uncapped, so is not pro-rated.

Read more about Accommodation budget limits.

What happens if an MP begins claiming for associated costs in a property they own?

MPs may choose to claim for associated costs (such as Council Tax and utilities) only if they live in a property they own.

The associated costs budget will be pro-rated from the date the MP registers the property until the end of the financial year (using 1/365 of the annual budget for each day).

If they move (for example into a hotel or rented accommodation) during the financial year, the budget will be pro-rated to the date they register for a different type of accommodation.

What happens if an MP registers a dependant?

MPs are provided with an uplift to their rental accommodation budget where they need to provide accommodation for dependants, up to a maximum of three dependants.

The uplift only applies when an MP is set up to draw from the Accommodation – rental cost budget, are in the rental property and have the dependant in their care.  

The uplift amount will be pro-rated from the day the dependant is in the MPs care. The MP must inform IPSA of this date. The uplift cannot be applied earlier than the start of the current financial year or the date the MP’s rental contract began. This could be, for example, when an MP and their dependant moved into accommodation or the date that an MP moved into appropriate accommodation ahead of the birth of a child.

The MP will receive 1/365 of the rental accommodation uplift for each day of the year the dependant was in their care.

Where a dependant turns 18 (or 21 when in full-time education and registered before 1 April 2017), the MP will continue to be eligible for the uplift until the end of that financial year, but not for the following financial year.

If the MP leaves rented accommodation during the year (and moves to hotel accommodation, for example), the dependant uplift will be pro-rated to the end of the rental period in the same way as the main rental accommodation budget.

Returning MPs

For returning MPs, the 2020-21 Office Costs budget will be made up of two components:

  1. The 2020-21 Office Costs Budget (£25,910 for non-London MPs and £28,800 for London MPs)

  2. Any surplus amount from the 2019-20 COVID Office Costs budget, up to a maximum of £10,000

New MPs

For new MPs, the Office Costs Budget will be made up of three components:

  1. The 2020-21 Office Costs Budget (£25,910 for non-London MPs and £28,800 for London MPs).

  2. Any surplus amount from the 2019-20 Start-up budget, up to a maximum of £6,000 .

  3. Any surplus amount from the 2019-20 COVID Office Costs budget, up to a maximum of £10,000 .

In the budget reports and dashboard in IPSA Online, we have added a new line for the COVID Office Costs budget. You will be able to clearly see how much of the COVID Office Costs budget has been carried over for 2020-21.

The start-up budget for new MPs is not separated out, this will appear as an increase to the Office Costs budget.

We carried out a short consultation regarding how best to carry the surplus budgets forward and understand that some offices do not want to use the COVID Office Costs budget.

If you did not exceed your Office Costs Budget during 2019-20, and did not make claims using the COVID Office Costs code, costs will not be applied to the COVID Office Costs budget.

If a new MP had less than £16,000 in surplus, the first £10,000 will be allocated to the COVID Office Costs budget and the remainder will be allocated to the Start-up budget.

If you have any questions about this please book a call with an account manager.

Contact IPSA

To get additional support, book a call back.